"Nongshim Target Price Raised Thanks to Overseas Ramyeon Success" [Click e-Stock]

Shinhan Investment Corp. Raises Nongshim Target Price
from 570,000 Won to 600,000 Won

On August 19, Shinhan Investment Corp. maintained its "Buy" investment rating on Nongshim and raised its target price from 570,000 won to 600,000 won.

Shinhan Investment Corp. analyst Cho Sanghoon stated, "We have factored in the effect of domestic price hikes and the recovery in overseas sales" in explaining the adjustment.

Analyst Cho assessed that Nongshim's performance in overseas markets is on a recovery trend. He said, "Although overseas growth momentum slowed over the past two years, we are now seeing a recovery beginning this year, which raises expectations for a rebound in the stock price." He added that once the Noksan export-only plant is completed at the end of October 2026, Nongshim's ability to respond to demand from Europe will be further enhanced.

He also emphasized that Nongshim's second-quarter results exceeded market expectations thanks to its overseas performance. In the second quarter, Nongshim recorded sales of 956.1 billion won and operating profit of 59.3 billion won, up 10.2% and 47.6% respectively from the same period last year. This was 16% higher than market expectations. He noted, "Despite the burden of selling and administrative expenses, including global advertising spending, the improvement in product mix driven by higher sales proportions from exports and overseas subsidiaries led to strong results."

Specifically, in the United States, although some tariff rebates were reflected, both sales and operating profit increased by 18% and 140%, respectively, year-on-year, due to expanded distribution through major retail channels. In China, expansion into the snack shop channel led to year-on-year sales and operating profit growth of 28% and 118%, respectively.

This content was produced with the assistance of AI translation services.