[Edaily Reporter kyoungeun kim ] SamyangFoods(003230)Despite concerns over profitability due to the strong won, forecasts indicate that the company will post third-quarter earnings in line with market expectations. Analysts predict that the company will continue its profit growth trend, driven by sustained robust overseas demand and cost efficiency measures.

In a report released on the 20th, Ha Hee-ji, an analyst at HYUNDAI MOTOR SECURITIES, estimated that SamyangFoods’ third-quarter consolidated revenue would reach 820.1 billion won, a 29.8% increase year-over-year, with operating profit rising 42.8% to 187.0 billion won. The operating profit margin is projected at 22.8%. She maintained her “Buy (BUY)” investment rating and target price of 1.9 million won. The previous day’s closing price was 1.25 million won.

By region, the firm expects U.S. sales to rise 35.4% year-over-year. Analyst Ha explained, “While price declines due to the strong won were somewhat unavoidable, robust volume growth driven by expanded sales in major mainstream channels and increased exports to South America will partially offset the negative impact of exchange rates.”

Sales in China are projected to rise 6.9% year-over-year and 9.0% quarter-over-quarter, driven by the effect of advance shipments in anticipation of the Mid-Autumn Festival and Singles’ Day. Sales in Europe, including the UK, are expected to surge by 122%. Although a temporary sales gap occurred due to a change in business partners at the UK subsidiary, demand is assessed to remain robust.

The company also expects to maintain profitability. Analyst Ha stated, “Although cost pressures are expected to increase in the third quarter due to the strong won and rising palm oil prices and shipping costs, profitability should be maintained as the one-time labor cost burden from the previous quarter disappears and marketing expenses are reduced.”

The new factory in China was identified as a medium- to long-term growth driver. The Chinese factory is expected to begin operations in early 2027 and reach full capacity in the second half of the year. Its production capacity is 1.13 billion units. Analyst Ha noted, “As production shifts to China, the volume destined for the Chinese market—which was previously handled by domestic plants—will be transferred there,” adding, “With increased production capacity at domestic plants, the surplus capacity can be utilized to meet global demand in markets such as the U.S. and Europe.”