Shares of Samyang Foods topped the 1.5 million won ($1,090) mark, rising nearly 50 percent in just two months, as investors bet on the enduring global popularity of its hot chicken noodles, Buldak.
On Thursday, the stock hit an intraday high of 1,502,000 won before closing at 1,494,000 won on the benchmark Kospi. It opened at 1,503,000 won on Friday and briefly notched a new all-time high of 1,535,000 won. As of 11 a.m. Friday, shares had eased to 1,470,000 won.
The rally extends a blistering run for Samyang, which passed the 1 million won mark on May 12, a milestone that places the food maker alongside Samsung Biologics as a company with seven-figure share prices.
Analysts credit the surge to expectations of strong quarterly earnings and increased production capacity.
"The company’s new facility will drive earnings growth as Buldak production scales up exports to the US and Europe from the third quarter," an analyst from Korea Investment & Securities noted.
Sales growth was limited in the first quarter due to supply constraints in the US and Europe, the analyst added, suggesting a sharp pickup ahead.
In June, Samyang’s new plant in Miryang, South Gyeongsang Province, came online to supply the US and European markets. The noodle maker currently produces all of its products in Korea but is building its first overseas plant in China, slated for completion in 2027.
A Kyobo Securities analyst also offered an upbeat outlook: “Given Samyang’s strong global recognition, there appears to be ample room for further upward revisions in its valuation.”
Last year, Samyang’s annual sales rose 45 percent to 1.73 trillion won, with operating profit soaring 133 percent to 344.2 billion won.
Overseas sales reached a record 1.33 trillion won, making up nearly 80 percent of total revenue. In the US, sales doubled to $280 million; sales in China surged 75 percent to $290 million.
According to financial information provider FN Guide, Samyang Foods’ operating profit for the first half of this year is projected to jump 55.4 percent on-year to 263.5 billion won, with revenue projected to rise 32.2 percent to 1.07 trillion won.
minmin@heraldcorp.com
