Korea Investment & Securities on the 17th said Samyang Foods will see the most distinct overseas business growth and high profitability within the food and beverage sector. It maintained a Buy rating and a target price of 2 million won, and recommended it as the top pick in the food and beverage sector. Samyang Foods' previous day's closing price was 1.32 million won.
Samyang Foods posted third-quarter revenue this year of 632 billion won, up 44% from a year earlier. Operating profit was 130.9 billion won, up 49.9% from a year earlier.
Kang Eun-ji, an analyst at Korea Investment & Securities, said, "Revenue beat the consensus (market forecast) by 6.6%, setting a record high," and "Operating profit was in line with the 130.3 billion won consensus."
The operating margin was 20.7%, a slight decline from the previous quarter. Kang said, "The biggest factor appears to be the U.S. tariff burden," adding, "Since prices were raised in the U.S. market starting in Oct., the tariff impact should be gradually offset."
Revenue at the U.S. subsidiary came to 159.6 billion won, up 63.6% from a year earlier, which was due to stocking up inventory in the first half to respond to uncertainty in U.S. tariff policy.
Kang said, "Demand in the U.S. remains solid," adding, "Although prices rose, revenue per mainstream store has continued to increase, and inventory at the U.S. subsidiary decreased from the previous quarter."
Revenue at the China subsidiary was 189.3 billion won, up 60% from a year earlier. China is also a country with high profitability, and the increase in revenue at the China subsidiary was estimated to have partially offset the tariff burden.
Korea Investment & Securities said that although the second Milyang plant has begun operations, supply remains insufficient.
Kang said, "Demand for Buldak spicy ramyeon remains solid, and the tariff burden will be offset through U.S. price increases, with profitability expected to rebound," adding, "As operations at the second Milyang plant stabilize and the China plant comes online in 2027, the share of overseas revenue will increase, further highlighting the most distinct overseas business growth and high profitability within the food and beverage sector."