Korea Investment & Securities said on the 20th that the decision to add lines at the China plant for Samyang Foods still shows insufficient supply and solid demand. It said export volume could increase going forward and maintained a target price of 2 million won and a "buy" rating. The previous trading day, Samyang Foods' share price was 1,375,000 won.
On the 19th after the regular session closed, Samyang Foods announced in a filing that it would dispose of 74,887 treasury shares worth 102.7 billion won and said it would increase the number of lines at the China plant under construction, slated to start operations in early 2027, from six to eight.
Kang Eun-ji, an analyst at Korea Investment & Securities, said, "As we are also building a new soup plant in Wonju by investing 78.1 billion won to produce soup to be used at the China plant, this disposal of treasury shares is to raise funds for the additional line installation at the China plant and the construction of the new soup plant."
Korea Investment & Securities, through the third-quarter earnings release this year for Samyang Foods, noted that solid demand continues in major overseas markets such as the United States and China, and said Europe, after completing the shift to a direct sales system via the local subsidiary, is expected to show an uptrend in export volume.
Kang said, "With U.S. price hikes offsetting the tariff burden and profitability also expected to rebound, it is necessary to use the recent share price correction as a buying opportunity."