Korea Investment & Securities said on the 14th that Nongshim is fully kicking off a localization strategy in global markets, increasing visibility for earnings growth. Accordingly, it raised the target price to 550,000 won from 490,000 won and maintained its "buy" recommendation.
Nongshim has begun pursuing a localization strategy in overseas markets and is preparing tailored products. After first launching Shin Ramyun Tom Yum in the third quarter of 2023, it released Shin Ramyun Tumba in the fourth quarter of last year, starting a full-fledged localization strategy. Nongshim plans to expand broths tailored to local tastes—such as chicken, seafood, and vegetables—and new products using local ingredients to target new demand.
Kang Eun-ji, an analyst at Korea Investment & Securities, said, "Since the second-quarter earnings release, Nongshim has been collaborating on marketing with 'K-pop Demon Hunters' and pushing a localization strategy, increasing visibility for growth in overseas business results," and noted, "It is time to focus on the earnings improvement momentum that will materialize through the 'KDH' collaboration and localization strategy."
The potential for overseas market expansion through the recent Korean Wave is also growing. Nongshim is moving to capture overseas consumers who are showing greater interest in Korean products by unveiling "Shin Ramyun Kimchi Fried Noodles" at "Anuga 2025," a food expo held in Germany from the 4th to the 8th. Sales of this product are set to begin in Australia and Taiwan at the end of this month.
Kang said, "As interest in Korean food has risen recently, Korea became the event's guest of honor for the first time," and added, "It will be an opportunity for Korean processed food companies to attract participants' attention and secure new distribution channels."