Samyang Foods' stock price surged on results that exceeded market expectations, marking its first entry into the top 50 by market capitalization.
Samyang Foods' shares traded at 1,233,000 won on the KOSPI market at 9:28 a.m. on the 16th. The stock price rose by 24.42% (242,000 won) from the previous day, setting a new all-time high.
Samyang Foods' market capitalization has surpassed 9.1 trillion won for the first time, rising to 47th place in the KOSPI market, outpacing Samsung Electro-Mechanics, Hanwha System, KAI, LIG Nex1, and Hanjin KAL.
Samyang Foods announced its first-quarter (January to March) results after the regular trading session on the previous day. The operating profit of 134 billion won exceeded market expectations of 104.5 billion won by 28.2%. This was attributed to ongoing growth in exports to major markets such as the United States and China. Reductions in raw material costs and export transportation fees also contributed positively to the results.
Securities firms have raised their target prices. Hanwha Investment & Securities presented the highest at 1.7 million won, followed by ▲IBK Securities at 1.45 million won ▲Yuanta Securities Korea at 1.31 million won ▲Korea Investment & Securities and NH Investment & Securities at 1.3 million won ▲KB Securities, Shinhan Investment & Securities, and LS Securities at 1.25 million won.
Global investment bank UBS has also raised the target price for Samyang Foods from 1.28 million won to 1.43 million won. UBS positively assessed that Samyang Foods' Miryang plant No. 2 is expected to enter full operation within the year and that production line operating hours will be increased from 20 hours to 23 hours a day to expand exports.