Korea Investment & Securities analyzed that the exchange rate effect is positive for Samyang Foods and that the overseas performance growth trend is continuing, expecting steep growth in earnings. They also raised the target price from the previous 770,000 won to 920,000 won and recommended a 'buy' investment opinion. The closing price of Samyang Foods on the previous trading day was 711,000 won.
In the fourth quarter of last year, Samyang Foods reported sales of 460.4 billion won, a 40.9% increase from the previous year, and operating profit of 90.9 billion won, marking a 151.3% increase, both of which are expected to surpass market estimates by 6.8% and 10.2%, respectively. Kang Eun-ji, a researcher at Korea Investment & Securities, noted, "Sales will increase due to a rise in the export volume of Spicy Chicken Noodle and the average selling price (ASP), and high revenue will likely be maintained."
Samyang Foods estimated that the average monthly ramen export amount from October to November last year was $75.01 million (approximately 109.6 billion won). This figure represents a 41.1% increase compared to the previous year. Improvements in manufacturing costs due to falling grain prices are continuing, and the recent rise in the exchange rate of the won against the U.S. dollar is also positive for Samyang Foods, which has a high proportion of overseas sales.
Additionally, Samyang Foods plans to build its first overseas factory in China. The Chinese factory will have six production lines and an annual production capacity of approximately 820 million units. Through this factory, Samyang Foods plans to aggressively target the domestic market in China. Research Institute Kang noted, "If operation of the Chinese factory begins in the first half of 2027, the currently operating Miryang Plant No. 1 and the second Miryang Plant, which is scheduled to operate by the end of the first half of this year, can focus on exporting to developed countries like the U.S. and Europe, further accelerating the growth of overseas performance."
He further stated, "Amid uncertain prospects for domestic processed food demand and recovery in the restaurant market, Samyang Foods, which shows a clear growth trend in overseas business while maintaining high revenue, remains an attractive option."