DAISHIN SECURITIES announced on the 29th that it expects Samyang Foods to expand its production capacity with the operation of the Miryang Plant No. 2, strengthening its performance momentum. It raised the target stock price from 1.7 million won to 1.9 million won, a 12% increase, and maintained the investment opinion as 'buy.'
Samyang Foods recorded 1.642 million won during trading on the 28th, setting a new record high. This was attributed to news that the full operation of the Miryang Plant No. 2 is expected to be faster than anticipated.
Jung Hansol, a researcher at DAISHIN SECURITIES, noted, "The report's content is not significantly different from the plans the company has communicated previously," adding, "Currently, two out of three pack noodle lines are operating on a two-shift schedule, with one on a single-shift schedule, and all pack lines are scheduled to operate on a two-shift basis starting in September."
The production capacity of Samyang Foods' Miryang Plant No. 2 is estimated at 690 million servings annually based on a 20-hour operation and 830 million servings based on a 23-hour operation. When combined with existing plants, Samyang Foods' maximum production volume reaches 2.7 billion servings. Additionally, the company is constructing a factory in China, scheduled for completion in the first quarter of 2027.
The expansion of production capacity is expected to respond to the increasing global demand for Buldak Bokkeumyeon. Currently, there is a supply bottleneck for Buldak Bokkeumyeon, but strengthening production capacity will likely enable diversification of export countries and the establishment of country-specific customized strategies.
The expansion of sauce sales utilizing the Buldak brand is also positive. Samyang Foods has formed an official partnership with the U.S. food brand Panda Express, and plans to launch collaborative products with the Philippine food brand Jollibee. The release of various food service brands and products is expected to contribute to increased consumer awareness, thereby expanding sauce sales.
The researcher noted, "The high overseas growth potential and profitability compared to domestic food companies increase its investment attractiveness," and added, "To minimize the impact of tariffs in the second half of the year, a price increase is also under consideration, so there is a possibility of upward revision of profit estimates depending on the extent of the increase."