Hanwha Investment & Securities announced on May 14 that it has raised its target price for Samyang Foods from 1.9 million won to 2 million won, citing continued global demand for its spicy chicken brand and anticipated growth from expanded production capacity. The firm maintained its "buy" rating on the stock.
Han Yu-jung, an analyst at Hanwha Investment & Securities, noted that the company’s consolidated operating profit for the first quarter rose 32.2% year-on-year to 177.1 billion won, exceeding market expectations. She stated that all of its subsidiaries in the U.S., China, and Europe recorded significant growth, contributing to the highest quarterly performance to date.
She added that the U.S. subsidiary achieved record quarterly sales, while the Chinese operation demonstrated stronger-than-expected growth due to rapid inventory turnover. Europe also returned to a high-growth trajectory, benefiting from the establishment of its UK subsidiary and improved client management.
Han emphasized that despite the challenges of maintaining high margins in the food and beverage sector, the company has sustained an operating profit margin exceeding 20%, indicating robust global demand for the spicy chicken brand.
She further projected that with the expansion of operations at the Miryang Plant 2 and ongoing improvements in production efficiency, the company is likely to continue breaking sales records each quarter. The new factory in China, scheduled for completion in January 2027, is progressing smoothly, and there remains a strong potential for further expansion to alleviate supply bottlenecks.
* This article has been translated by AI.
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