[Edaily Reporter Kim Kyung-eun ] On the 18th, Yuanta Securities Korea raised its target price for Nongshim(004370)by 7.5% from 530,000 won to 570,000 won, citing increased visibility into the company’s overseas growth. The firm maintained its “Buy” rating.

Son Hyun-jung, an analyst at Yuanta Securities Korea, stated in a report released that day, “We believe it is appropriate to apply a valuation closer to that of the global instant noodle peer group rather than that of domestic, low-growth food companies.”

Nongshim’s consolidated revenue for the second quarter reached 956.1 billion won, a 10.2% increase year-over-year. Operating profit rose 47.6% to 59.3 billion won, exceeding market expectations.

While domestic subsidiary revenue rose by only 1.8% year-over-year, overseas subsidiary revenue surged 30.6%, driving the company’s overall growth.

Sales in the U.S. rose 17.9% year-over-year. Sales volume increased by 3.1%, marking a shift to growth after a 3% decline in the first quarter. This was driven by expanded entry into new mainstream channels, while sales through existing channels such as Costco and Walmart remained steady.

Sales in China rose 28.2%, driven by new products and the expansion of the snack shop channel. Sales in Europe reached 43 billion won, continuing the growth trend following the first quarter’s 37.2 billion won.

Profitability also improved. This improvement was driven by the growing share of overseas operations and the effect of price increases in the U.S. Second-quarter operating profit in North America is estimated at approximately 20.4 billion won, with an operating profit margin of around 12%. In the U.S., a one-time refund related to reciprocal tariffs was also reflected in the results.

Overseas growth is expected to continue in the third quarter. Yuanta Securities Korea estimates Nongshim’s third-quarter consolidated revenue at 925 billion won and operating profit at 60.9 billion won. This represents year-over-year increases of 6.2% and 11.9%, respectively.

Overseas subsidiary revenue for the third quarter is expected to reach 332.3 billion won, a 24.9% increase year-over-year. Revenue in North America and China is projected to rise by 15% and 25%, respectively. Revenue in Europe is estimated to reach 45.1 billion won, a 90% increase.

Analyst Son predicted, “Double-digit growth is expected to continue in key regions.”

In the domestic market, the company implemented an average price increase of 5.8% this month, which is estimated to generate an annualized revenue increase of approximately 70 billion won. While the impact of the price hike will be limited in the third quarter, it is expected to expand starting in the fourth quarter.

The Noksan export-only plant is scheduled to begin operations at the end of October. The initial operating rate is expected to be around 20–30%, and the facility will be prioritized for supplying the European market. While its contribution to this year’s earnings will be limited, analysts note that it is significant in securing the production capacity needed to expand the European business in 2027.

Reflecting these factors, Yuanta Securities Korea projected Nongshim’s 2026 consolidated revenue at 3.7443 trillion won and operating profit at 239.3 billion won. These figures represent year-over-year increases of 6.5% and 30.1%, respectively.

The firm expects standalone exports to rise 20% year-over-year, while revenue from overseas subsidiaries is projected to increase by 26.1% to 1.3251 trillion won. Revenue from Europe is forecast to reach 180.8 billion won.