[Edaily Reporter Kwon Oh Seok ] Yuanta Securities Korea announced on the 21st that it is maintaining its “Buy” investment rating and a target price of 2 million won for SamyangFoods(003230).

Son Hyun-jung, an analyst at Yuanta Securities Korea, explained, “In 2027, the expansion of production capacity through the launch of the Jiaxing plant in China will begin in earnest. The Chinese plant, with an annual production capacity of 1.13 billion sets, is significant because it will shift production for the Chinese market—previously handled by existing domestic facilities—to local production, allowing the freed-up domestic production capacity to be allocated to high-ASP (average selling price) markets such as the U.S. and Europe.”
She added, “Combined with the rising utilization rate at the Miryang Plant No. 2, the upward trend in overseas sales volume is expected to continue. There is also room for further growth on the pricing front. The need to adjust overseas selling prices in response to rising raw material and logistics costs is increasing, and price hike trends are already emerging in some markets.”
He emphasized, “If additional price hikes materialize in major overseas markets in 2027, the increase in sales volume could be further bolstered by rising ASPs. Reduced logistics costs resulting from local production in China are also a factor improving profitability.” He added, “In the medium to long term, attention should also be paid to the possibility of constructing new overseas plants following the one in China. If plans to secure additional production bases in response to expanding global demand materialize, this is expected to enhance the sustainability of growth.”
He projected that third-quarter consolidated revenue would reach 804.9 billion won (up 27.4% year-over-year) and operating profit 183.3 billion won (up 40.1%), in line with market consensus.
Analyst Son noted, “In the U.S., sales volume growth is expected to continue due to the expansion of mainstream channels and the acquisition of new clients in Mexico, while in China, we anticipate demand driven by pre-shipments for the Mid-Autumn Festival and Singles’ Day will be reflected.” However, he added, “Due to changes in supply terms with clients in the U.K. and some European markets, approximately 20 billion won in revenue recognition may be deferred to the fourth quarter. "This is a temporary difference in the timing of revenue recognition due to changes in transaction terms, rather than a slowdown in local demand," he explained.
The forecast for 2027 calls for consolidated revenue of 3.8545 trillion won (+23.3%) and operating profit of 921 billion won (+27.9%). He added, “Now is the time to focus on the potential for sales volume expansion and price increases resulting from the launch of the new factory in China, rather than short-term exchange rate pressures.”