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[Alpha Biz= Reporter Kim Minyoung] On the 16th, Kiwoom Securities maintained a 'Buy' rating and a target price of 850,000 won for Samyang Foods, despite recent stock price volatility. The firm highlighted that while the stock has faced fluctuations, the company's growth trajectory remains strong.
Kiwoom Securities noted that Samyang Foods is addressing supply shortages of its core product, Buldak Bokkeumyeon, through increased production and a higher proportion of sales in high-priced regions. They pointed out that strong demand growth in the U.S. and Europe is leading to higher upper-range quarterly sales figures for the company.
Looking ahead, Kiwoom Securities expects continued revenue and profit growth driven by expanded U.S. retail presence, increased exports to Mexico and Canada, and market penetration through a European sales subsidiary.
Despite a 3% drop in stock price on the day of the earnings report, which exceeded market consensus with an operating profit of 89.5 billion won, Kiwoom Securities views the dip as a buying opportunity.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
