Ebest Investment & Securities maintained its "buy" opinion at 120,000 won, believing that Samyang Food will gradually recover from the second half.
On the 17th, eBest Investment & Securities predicted that Samyang Food's consolidated third-quarter earnings will fall 7.2% and 20%, respectively, to KRW 155 billion in sales and KRW 18.7 billion in operating profit, compared to the same period last year.
Analysts say that sluggish external growth due to last year's weight lifting will also affect the third quarter. However, in the case of instant noodle exports, the growth rate is expected to recover.
"The impact of the selling price increase (average 6.9% increase), which was reflected from the 1st, will begin to be reflected in the fourth quarter and will be reflected in earnest from next year," said Shim Ebest Investment & Securities.
Meanwhile, Samyang Food has revised its new plant in Miryang, which is scheduled to be completed between March and April next year, from the existing three lines to four lines. The establishment of the corporation seems to have been completed in the U.S., and it is expected that it will be able to operate directly from next year after reorganizing channels in China.
"Depending on the decision to raise prices of 13 domestic products and raise export unit prices, profits will continue to improve as we get closer to the end of the year," said Ebest Investment & Securities "Conversion to overseas sales firms and investment in new plants in Miryang will become long-term investment points.".
Reporter Lee Dong-hoon firstname.lastname@example.org