"Expectations on Shin Ramyun Tumba" Nongshim Target Price↑ – Korea Investment & Securities

[Financial News] Korea Investment & Securities has raised Nongshim's target stock price to 520,000 won, reflecting expectations of domestic profitability recovery and increased shipments in the North American market. The investment opinion remains 'Buy'.
On the 29th, Eunji Kang, a researcher at Korea Investment & Securities, said, “Domestic sales in the second quarter are expected to increase by 2.3% year-on-year to 703.3 billion won, and operating profit is expected to increase by 63.1% to 28.3 billion won,” explaining that “the effect of last year's price increase and cost efficiency is maintained, and profitability is recovering.”
She continued, “Although operating profit in the North American market is expected to decrease by 35.9% year-on-year due to new product marketing, shipments are maintaining an upward trend,” analyzing that “with the global expansion of Shin Ramyun Tumba, performance will show a gradual improvement.”
In particular, Nongshim is expanding its entry into mainstream channels in North America such as Walmart and Costco, as well as entering the Japanese CVS and Chinese distribution network.
Researcher Kang predicted, “We calculated the target stock price by applying the upper PER of 16 times when domestic profitability improvement and the performance of the US subsidiary were highlighted in 2023,” and “depending on the global performance of new products, sales growth and profitability improvement can be achieved simultaneously.”   

koreanbae@fnnews.com Bae Hangul Reporter