Amid fluctuations in the Korean stock market due to the U.S. Federal Reserve's adjustments in the pace of interest rate cuts, the stock price of Samyang Foods continues to be strong. This seems to be attributed to the sustained popularity of its flagship product, spicy stir-fried noodles.
On the 19th, at 9:57 a.m., Samyang Foods' stock was traded at 748,000 won on the KOSPI market. The stock price rose by 5.8% (41,000 won) compared to the previous day. During the trading session, the stock price peaked at 753,000 won, nearly reaching its all-time high of 756,000 won.
Samyang Foods' recent announcements of expansion plans seem to have stimulated investor sentiment. The company disclosed that it would expand its factory in China to meet demand in the Chinese market. Samyang Foods plans to invest approximately 200 billion won to establish six production lines in Jiaxing City, Zhejiang Province, China.
Park Sang-jun, a researcher at Kiwoom Securities, noted, "This expansion is estimated to provide a production capacity (capacity utilization) of about 700 billion won based on annual sales," adding that it is nearly double the cumulative sales of about 370 billion won from the last four quarters of the Chinese subsidiary. He further stated, "This local factory expansion is expected to strengthen the targeting of second- and third-tier cities in the Chinese domestic market."
On the same day, Park raised the target price for Samyang Foods from 800,000 won to 950,000 won. Jang Ji-hye, a researcher at DS Securities, also adjusted the target price for Samyang Foods upward from 720,000 won to 850,000 won.