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Nongshim headquarters. (Photo=Nongshim) |
[Alpha Biz= Reporter Kim Sangjin] Samyang Foods is anticipated to report strong performance in the third quarter of this year, driven by increased exports to the U.S. and China. In contrast, Nongshim is expected to struggle with its export results.
According to Daishin Securities, Samyang Foods is projected to achieve sales and operating profits of 426.9 billion won and 87 billion won, respectively, in Q3, marking increases of 27.3% and 100.4% year-on-year.
With the completion of its second factory scheduled for May next year, Samyang Foods' annual production capacity is expected to rise from approximately 1.8 billion units to 2.5 billion units. Given the current supply shortage relative to demand, the company is well-positioned to boost its exports. Researcher Jeong Han-sol from Daishin Securities commented, "In the context of stock price adjustments, the valuation burden has decreased, and there’s no reason not to buy."
On the other hand, Daishin Securities has lowered its target price for Nongshim from 550,000 won to 530,000 won. The firm forecasts a 3% decline in operating profit for Q3, estimating it will reach 54 billion won compared to the same period last year. Jeong noted, "Exports to the U.S. and China are underperforming expectations, and since investors had anticipated a recovery in Q3 performance, disappointment will likely be reflected in the stock price."
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
