Shinhan Investment Corp. noted on the 22nd that concerns are rising ahead of the U.S. reciprocal tariff imposition deadline for Samyang Foods, but it evaluated that this is a time when overseas export momentum is reflected. It maintained its investment opinion of 'buy' and its top pick in the sector. The target price was raised by 18% to 1.65 million won. The previous closing price of Samyang Foods was 1.393 million won.
Shinhan Investment Corp. analyzed that concerns are once again rising ahead of the U.S. reciprocal tariff imposition deadline for Samyang Foods, but that its high gross profit margin, low price sensitivity, strong brand power, and potential for price increases could offset this.
Cho Sang-hoon, a researcher at Shinhan Investment Corp., said, "The Miryang Plant 2 will be operational from July, and when the local factory in China is completed by the end of January 2027, we expect accelerated growth." He added, "In the domestic food and beverage market, where quantitative limits are clearly defined, it is exemplary."
For the second quarter of this year, Samyang Foods is expected to have sales and operating profit of 562.2 billion won and 130.6 billion won, respectively. These figures represent increases of 32.5% and 46% compared to the same period last year and are anticipated to match consensus market expectations.
Researcher Cho stated, "Similar to the previous quarter, the increase in export sales, regional mix, and cost improvements are expected to align well and meet heightened market expectations."
However, it mentioned that the valuation could be somewhat burdensome. The expected price-to-earnings ratio for 2026 is 18.8 times.
Researcher Cho noted, "We pay attention to the fact that the high growth rate compared to competitors can continue for a long time as we enter a period of expanding overseas momentum."