Nongshim Shin Ramyeon Tumba 2 types. /Courtesy of Nongshim

KB Securities revised its operating profit forecast for Nongshim upward from 221.8 billion won to 232.2 billion won on the 2nd, citing the global launch of Shin Ramyeon Tumba and the expansion of overseas business amid a strong dollar environment. Accordingly, the investment rating was upgraded to "buy," and the target stock price was raised by 4% from the previous 500,000 won to 520,000 won. Nongshim's stock price on the last trading day was 374,000 won.

KB Securities estimated that Nongshim's consolidated revenue for the fourth quarter of last year would exceed market expectations, reaching 906.0 billion won, with operating profit of 45.4 billion won. Ryu Eun-ae, a researcher at KB Securities, noted, "With the relocation of Walmart shelves and new line activation in the second factory, sales of the U.S. subsidiary are expected to increase by 14.7% and operating profit by 25.4% compared to the same period last year," and added, "Separate revenue is expected to grow due to the seasonal effect of ramen sales and the strong performance of Shin Ramyeon Tumba."

He continued, "This year, Shin Ramyeon Tumba is set to be launched globally, and we anticipate increased performance contributions primarily from the Americas," and added, "Sales are expected to rise in North America, where the non-broth ramen market is growing rapidly, and in South America, where there is a strong preference for spicy flavors."

Researcher Chae stated, "As Shin Ramyeon brand new products become available on the main shelves in American Walmart stores, the sales of Shin Ramyeon Tumba are expected to accelerate," and mentioned, "As the results of this year’s collaboration with eBay become visible, profitability in the Chinese subsidiary is also expected to improve."

He also noted, "It seems that the transfer of transactions from last year's fourth quarter has been completed and discussions of online-centered collaboration are ongoing," and added, "As we focus on growth channels and reduce expenses such as promotional and logistics costs, the operating profit margin of the Chinese subsidiary is expected to improve."