[Edaily Reporter Kwon Oh Seok ] HANWHA INVESTMENT & SECURITIES announced on the 12th that it is maintaining its “Buy” rating and target price of 1.8 million won for SamyangFoods(003230).

Han Yu-jeong, an analyst at HANWHA INVESTMENT & SECURITIES, stated, “From 2027 through the first half of 2028, supply will continue to increase through the ‘ramp-up’ (expansion) of the Jiaxing plant in China, and in the second half of 2028, additional production capacity will be secured as the Jiaxing plant transitions to a three-shift system.” "Subsequently, in January 2029, the new plant in Vietnam is expected to begin full-scale production, and as additional lines are brought online sequentially thereafter, the effect of expanded production capacity (CAPA) is expected to continue," she emphasized.
Previously, SamyangFoods decided to establish a new production subsidiary and factory in Thuan Thanh, Vietnam. The estimated investment is approximately 218.6 billion won, and the facility—designed to accommodate a total of eight production lines—is scheduled for completion in January 2029. The Vietnam plant is set to operate eight production lines, and upon completion, its annual production capacity is estimated at approximately 1.12 billion units.
An analyst stated, “This is the second overseas production hub following the Jiaxing plant in China, and we view this investment as a preemptive measure to address potential supply shortages after 2029,” adding “Following the Miryang Plant 1 in 2022, Miryang Plant 2 in 2025, and the Jiaxing plant in China in 2027, large-scale expansions of production capacity are continuing at intervals of two to three years, culminating with the Vietnam plant in 2029,” the analyst explained.
He continued, “The significance of the Vietnam plant goes beyond a simple expansion of production capacity. While the Jiaxing plant in China is intended to meet domestic Chinese demand, the Vietnam plant is being established to meet European demand,” adding, “Since sales prices in Europe are estimated to be at least 50% higher than in China, if the new production volume is allocated to regions with high average selling prices (ASP), such as Europe, the same increase in sales volume could lead to a greater increase in revenue. “Considering that it serves as a production hub for high-ASP export markets, its production capacity, measured in value terms, is highly likely to be the largest,” he elaborated.
With this investment decision, the mid- to long-term production capacity expansion plan—which involves ramping up the Chinese plant, transitioning to three-shift operations, and commencing operations at the Vietnamese plant starting in 2027—has become even more concrete. One analyst added, “Given that SamyangFoods’ growth constraints have stemmed from supply rather than demand amid sustained high demand in overseas markets, this investment decision is a factor that enhances visibility for mid- to long-term growth.”