DS Securities said on the 27th that Nongshim's results for the upcoming third quarter are expected to meet market expectations. It maintained an investment opinion of "Buy" and a target price of 540,000 won. Nongshim's previous closing price was 429,000 won.
DS Securities projected Nongshim's third-quarter results at annual sales of 869.8 billion won and operating profit of 45.1 billion won. It said those figures are up 2% and 20%, respectively, from a year earlier and are expected to meet market expectations.
Jang Ji-hye, an analyst at DS Securities, expected the domestic division to post sales of 627.3 billion won, noting, "Domestic snacks and ramyun are expected to see top-line growth thanks to price hikes and strong new products, but exports are projected to be sluggish at a level similar to the previous quarter due to the impact of realigning trading partners."
The overseas division was projected to post sales of 242.5 billion won, with China, Japan and Australia expected to see top-line growth, but the United States projected to be sluggish due to a decline in sales volume following price increases.
However, it expected a rebound to begin as Nongshim's share of overseas sales is projected to increase going forward. Jang projected the overseas sales share to rise from 37% in 2024 to 61% in 2030.
Jang said, "In the fourth quarter, the global trading partner realignment will be completed, products such as the Shin Toomba and the Kedehun collaboration will go into full-scale sales, and the effect of U.S. price hikes will be fully reflected, so domestic and overseas earnings growth is expected," adding, "The overseas growth trend will continue next year as well, with the first half benefiting from last year's low base effect and the second half seeing growth from the operation of the Noksan export-only plant."
She went on to say of Nongshim, "By collaborating with K-content such as Kedehun and K-pop artists, strengthening global marketing, realigning global distribution and entering the mainstream, and expanding production capacity (Capa), it is solidifying the foundation for overseas growth."
DS Securities projected Nongshim's full-year results on a consolidation basis at sales of 3.5 trillion won and operating profit of 180 billion won. Those figures are up 2% and 10%, respectively, from the same period a year earlier.