DAISHIN SECURITIES noted on the 22nd that Samyang Foods is expected to strengthen its overseas growth as production capacity (CAPA) expands due to the operation of the Miryang Plant 2 in the second half of the year. It maintained its investment opinion of 'buy' and adjusted the target stock price from 900,000 won to 1,200,000 won, an increase of 33%. The closing price of Samyang Foods on the previous trading day was 957,000 won.

On the 26th, products from Samyang Foods are displayed at a large mart in Seoul. /Courtesy of Yonhap News.

Researcher Jeong Hansol from DAISHIN SECURITIES said, "With the operation of the Miryang Plant 2 in July, production capacity (CAPA) is expected to increase from the current 1.8 billion to 2.5 billion. He predicted that, with an initial operation rate of 50%, we could secure over 100 billion won in production value."

He also noted, "As excess demand continues, exports are expected to increase through regional and channel expansion," adding that "based on additional production capacity, we anticipate launching new products that consider local tastes to diversify the product portfolio."

DAISHIN SECURITIES estimates that Samyang Foods will record consolidated sales of 486.3 billion won and an operating profit of 102.4 billion won for the first quarter of this year (January to March). These values represent increases of 26% and 28%, respectively, compared to the same period last year, and align with market expectations (consensus).

Researcher Jeong explained, "Compared to strong overseas demand, we have focused on higher-cost regions due to limited production CAPA, and as we expect to re-enter a structural growth phase after the plant expansion, the investment attractiveness within the food and beverage sector remains high."

It is expected that the impact of tariffs can also be minimized. Researcher Jeong said, "While it is true that we are exposed to U.S. tariff risks due to having domestic production facilities, we can minimize the impact of tariffs through price adjustments by the U.S. subsidiary," noting that "considering favorable exchange rates and potential price increases, the tariff impact is likely to be limited."