[Click e-Stock] The 'Buldak' That Captivated the World... What About as an Investment?

NH Investment & Securities has maintained its "Buy" investment rating on Samyang Foods, as well as its target price of 1.88 million won.

On August 19, Juyounghoon, an analyst at NH Investment & Securities, stated, "Samyang Foods' price-to-earnings ratio (PER) this year is only 14.2 times," and added, "Given that it has traded at an average PER of 22.5 times over the past two years, its investment appeal from a valuation perspective has increased."

The analyst continued, "Once again, the company has posted its highest-ever quarterly sales, proving its competitiveness. Moreover, the proportion of overseas sales, which we consider to be a key factor in food and beverage stock prices, expanded to 84% as of the second quarter of this year, which is also positive. Thanks to continued high growth in the U.S. market and the European subsidiary entering a phase of full-fledged growth, it does not appear that overall sales growth will slow down anytime soon."

On a consolidated basis, sales revenue and operating profit in the second quarter of this year reached 770.3 billion won and 176.2 billion won, up 39.3% and 46.7%, respectively, compared to the same period last year, in line with consensus estimates. The analyst pointed out, "Despite factors such as increased selling, general and administrative expenses including global marketing costs for the Central America World Cup and higher labor costs, gross profit margin improved, driven by the expansion of sales from U.S., European, and U.K. subsidiaries, which led to better performance. While aggressive marketing spending is expected to continue in the second half of the year, the increase in sales has been sufficient to fully offset this," he added.

He also estimated, "In the third quarter of this year, sales revenue and operating profit are expected to rise by 31.7% and 44.1%, respectively, compared to a year earlier," adding, "With the U.S. and Europe, an expansion of sales from the Chinese subsidiary is also anticipated."

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