The Korea Securities Dealers Automated Quotations (KOSDAQ) listed company SND is showing strength in early trading on the 19th. This surge in expectations for performance comes after SamYang Foods announced plans to establish a new overseas factory in China, leading to an influx of buying pressure on SND, which is known to produce and supply the sauce used in its spicy chicken ramen.
As of 9:52 a.m. on the same day, SND is trading at 50,500 won, up 9,600 won (23.47%) from the previous trading day.
SamYang Foods announced after the market closed the previous day that it would establish a local production corporation in China to respond to the domestic market there and construct a local factory. The total investment is 201.4 billion won. The company plans to expand its production lines in China by six, aiming for completion by the end of January 2027.
In response, securities firms have raised their target prices for SamYang Foods, noting that its performance growth could accelerate. Kiwoom Securities raised its target price for SamYang Foods from 800,000 won to 950,000 won, while DS Investment & Securities adjusted its target price from 720,000 won to 850,000 won. At the same time, SamYang Foods is up 5.8%.
Lim Sang-guk, a research institute at KB Securities, said, “The global sales growth of SamYang Foods' spicy chicken series is leading to growth for SND, which exclusively supplies the key ingredients for the liquid and powder seasoning of the spicy chicken ramen. The fact that customers have successfully entered retailers in the United States like Walmart, Costco, and Target, and are expanding factory operations, is expected to result in future revenue growth for SND.”