These days, the phrase "only stocks that are rising continue to rise" is being heard. This refers to Samyang Foods, which has risen to the status of a blue-chip stock thanks to the export of its spicy chicken noodle. In the securities market, Samyang Foods has raised its target stock price even after nearing 1.6 million won. This is because it seems that there will be more business growth opportunities in the future rather than considering that the stock price has reached a short-term peak.
On the 3rd, according to FnGuide, Hanwha Investment & Securities recently raised its target price for Samyang Foods to 1.9 million won. This is because they see that the market share will continue to expand in the U.S. and Chinese markets. Kyobo Securities also raised the target price for Samyang Foods to 1.77 million won, while Daishin Securities set its target price at 1.7 million won. Based on the closing price the previous day (1,551,000 won), Samyang Foods has seen a stock price increase of 103% this year. The closing price at the end of last year was 765,000 won, meaning it has more than doubled. The upward trend in stock prices is indeed remarkable.
The issue of tariffs on imports to the U.S. is also viewed as insufficient to halt the rising stock price of Samyang Foods. Initially, from the emergence of the tariff issue, many saw a negative outlook since Samyang Foods did not have local facilities (factories) in the U.S. However, recently this aspect has also been losing its impact. This is because the spicy chicken noodle is selling well not only in the U.S. but also in Europe and Southeast Asia, and its market dominance is increasing.
Forecasts of a decrease in export volume in the second half of the year also do not affect Samyang Foods' stock price. According to the Korea Agro-Fisheries & Food Trade Corporation (aT), the ramen export amount in July was $14.27 million (approximately 19.9 billion won), a decrease of 17.8% compared to the same period last year. This is a kind of optical illusion that resulted from executing the export of ramen or snacks (chips) with long shelf lives before the tariffs rise.
An industry insider noted, "As the tariff issue arose, Samyang Foods implemented a 'pre-shipment strategy' to ship planned quantities in advance during the first half of the year," adding that "since they shipped volumes early, there may be a decrease in export volume in the second half."
On the other hand, the securities market seems to support the assessment that products subject to tariffs are items that can have price transfers. This indicates that they are products preferred by consumers. Park Sang-jun, an analyst at Kiwoom Securities, stated, "Starting in the fourth quarter of this year, it is expected that price transfers will be possible," adding that, "Other competitors have already raised prices in the U.S. market, and Samyang Foods is likely to implement a price increase of around 10%, which will offset the costs associated with tariffs."
However, opinions in the securities market regarding Nongshim's aggressive moves to target overseas markets differ. Those who believe that performance in overseas markets is lagging behind expectations have lowered their target prices. IM reduced the target price for Nongshim from 550,000 won to 500,000 won. KB Securities also raised Nongshim's target price from 500,000 won to 520,000 won earlier this year but then lowered it back to 500,000 won last month. The increase in stock prices this year is not high either. Based on the closing price the previous day (430,000 won), it has only risen 15% this year.
Nonetheless, there are opinions that the current level of Nongshim's stock price is undervalued considering its active overseas market push. Recently, Nongshim has quickly leveraged the popularity of the movie "K-Pop Demon Hunters" (Kedehun) by producing limited edition products and opening Shin Ramyun cuisine at overseas landmarks, focusing on marketing. As they have been trying to enter the U.S. market for a long time, they also have local production facilities to avoid the burdens of a tariff war. Hana Securities stated, "Nongshim has merely been overshadowed by the dominant Samyang Foods, while its market share in North America shows a favorable trend," maintaining its target price at 540,000 won.