'K-Ramen' Overshadowed by Semiconductors... Will the Second Half See a Fiery Comeback?

Samyang Foods and Nongshim See Fewer Minority Shareholders in H1
Securities Analysts Raise Target Prices on Strong Overseas Sales

Despite the strong global popularity and the impressive earnings reported in the first half of this year, K-ramen stocks have seen retail investors turning away from them in the domestic stock market. This is attributed to the trend, observed since the beginning of the year, of domestic equity investors concentrating their attention and capital on semiconductor stocks.

According to the Financial Supervisory Service’s electronic disclosure system on August 20, the number of retail shareholders of Samyang Foods as of the end of the first half of this year was 64,947—a decrease of 9.2% (or 6,557 people) compared to the end of last year. Nongshim's retail shareholder count also fell by 3.5% (1,603 people), from 45,210 at the end of last year to 43,607 at the end of June this year.

Samyang Foods and Nongshim are leading Korean food companies whose number of retail shareholders spiked last year on the back of growing overseas sales of K-Food. In particular, shares in Samyang Foods have skyrocketed over the past three years, earning the nickname "Bulldak Semiconductor" in the securities market. The stock price of Samyang Foods jumped more than tenfold from 107,000 won at the end of June 2023 to 1,125,000 won at the end of the first half of this year.

The number of retail shareholders of Samyang Foods was just 32,616 at the end of 2024 and only increased to 38,436 by the end of the first half of the next year. However, the count surged in the second half of last year, reaching 71,504 by the end of the year, before declining again this year. Nongshim also saw its retail shareholder number rise from 24,445 at the end of 2024 to 45,210 by year-end last year, before starting to fall this year.

With the popularity of K-Food, Korean food companies saw a sharp rise in the proportion of overseas sales revenue, which drove significant increases in the number of retail investors in food stocks across the board—not just Samyang Foods and Nongshim. At the end of last year, the number of retail shareholders of CJ CheilJedang increased by 40% over the past year to 92,139, while Orion’s figure grew by 6.1% year-on-year to 42,317. Ottogi also added new retail shareholders—a 35.3% surge—to reach 37,321.

However, in the first half of this year, as the concentration of investment in major semiconductor stocks such as SK hynix and Samsung Electronics intensified, individual investors shifted their investments from food stocks to semiconductor shares, changing the trend in the number of retail shareholders. During the first half, the domestic stock market saw a sustained rally centered on the artificial intelligence (AI) boom and large-cap semiconductor stocks like Samsung Electronics and SK hynix. Individual investor capital also concentrated on the semiconductor sector through single-stock leveraged exchange-traded funds (ETFs). A Samyang Foods official commented, "We believe that the decline in retail shareholders is due to the concentration in semiconductor stocks."

The proportion of free-floating shares held by retail investors in Samyang Foods and Nongshim also dropped slightly due to the decrease in shareholder numbers. At Samyang Foods, the proportion of shares held by retail shareholders declined from 47.2% at the end of last year to 46.6% at the end of the first half. For Nongshim, this figure also fell from 38.1% to 35.5% over the same period.

In the securities industry, target prices for both Samyang Foods and Nongshim have been raised in succession, reflecting their robust second-quarter performance driven by overseas sales. According to the financial information provider FnGuide, Samyang Foods' target stock price is set at 1,856,429 won, while Nongshim’s is set at 564,615 won. The securities industry projects further earnings growth for both companies, citing expanding sales in overseas markets and the potential for a medium- to long-term revaluation of their valuations.

Choi Gowoon, a researcher at Korea Investment & Securities, commented on Samyang Foods, saying, "Seeing that growth rates are even higher in the US and Europe, there’s no need to worry about the 'Bulldak' line." She added, "Global growth for 'Bulldak' is expected to continue in the second half. Although doubts about this year’s growth had arisen as export momentum stalled and operating margins declined after last summer, the company has demonstrated its performance with results, regaining earnings visibility. Now, with less than half a year remaining until the expansion of the Jiaxing plant in China, expectations are mounting." Cho Sanghoon, a researcher at Shinhan Investment & Securities, said of Nongshim: "We have factored in the effect of domestic price increases and the recovery in overseas sales volume. Overseas growth momentum slowed over the past two years, but a recovery trend has started this year, raising expectations for a rebound in the share price."

Meanwhile, Samyang Foods’ share price dropped to just above 1 million won per share in March and June, but began to rebound last month and recovered to 1.3 million won this month. Nongshim’s share price, which had been above 400,000 won per share early in the year, fell into the 300,000 won range in June but has been climbing again since last month.

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