NH Investment & Securities on the 11th projected that export growth will continue for Samyang Foods, as it is hard to replace the competitiveness of its flagship product, Buldak Stir-Fried Ramen.

NH Investment & Securities maintained its investment opinion of Buy on Samyang Foods and raised its target price to 1.88 million won from 1.65 million won.

Samyang Foods' Buldak Bokkeummyun displayed at a large supermarket in Seoul. /Courtesy of News1

Researcher Ju Young-hun of NH Investment & Securities set the target price by applying a price-earnings ratio (PER, market capitalization ÷ net income) of 26.8 times to Samyang Foods' 2026 controlling shareholders' net income estimate.

Ju said, "PER of 26.8 times is a value that applies a 20% premium to the five-year average valuation of Japanese ramen corporations Nissin and Toyo Suisan," adding, "Given that Samyang Foods' growth rate and profitability indicators are far higher than those of competitors, we judge it can be sufficiently recognized in the market."

Ju also expected the Netflix animation "K-pop Demon Hunters" craze to be a boon for Samyang Foods. He said, "The scene where characters in the film take on a spicy challenge and eat a product reminiscent of Buldak sauce means Buldak Stir-Fried Ramen has established itself as a cultural phenomenon," adding, "The momentum for overseas exports is highly likely to continue."

Ju projected that Samyang Foods will also post strong results in the third quarter of this year (July–September). He presented estimated third-quarter revenue and operating profit of 592.2 billion won and 134.5 billion won. Those are 35% and 54% higher, respectively, than a year earlier.

Ju said, "Samyang Foods' (new) Milyang Plant 2 utilization rate is quickly rising to the current 50% level, and with the China plant scheduled for completion in Jan. 2027, there should be no problem responding to increasing demand."

He added, "As Samyang Foods is currently in an aggressive footprint expansion phase, a certain level of marketing expense expenditure will continue, but given that sales indicators are rising rapidly, cost concerns should not be significant."

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