"'Disposal of Treasury Shares' to Drive Samyang Foods Stock to 1.8 Million KRW"... 'Blazing' ISU Petasys Target Price Raised Again [Zootopia]

[Financial News] Here is a summary of major securities firm reports as of the morning of November 20.
ISU Petasys is expected to see sharp revenue growth next year, driven by the expansion of its fifth plant. Samyang Foods Co., Ltd. is forecast to accelerate its global expansion, fueled by additional investment in China and the disposal of treasury shares.
ISU Petasys (007660)— DS Investment & Securities / Researcher Lee Su-rim
- Target Price: 154,000 KRW (up from previous 50,000 KRW)
- Investment Opinion: Buy
DS Investment & Securities has significantly raised its target price for ISU Petasys from 50,000 KRW to 154,000 KRW, citing expectations of rapid revenue growth starting next year. Researcher Lee Su-rim explained that demand continues to exceed production capacity, projecting fourth-quarter results at 308 billion KRW in revenue and 61 billion KRW in operating profit. For next year, the expansion of the fifth plant is expected to drive revenue to 1.44 trillion KRW and operating profit to 285.9 billion KRW. In the mid- to long-term, with the ramp-up of the fifth plant to be completed by 2029, annual revenue is projected to reach 1.5 trillion KRW. The target price-to-earnings ratio (PER) was also raised to 42 times, reflecting the company's position as a key supplier to major ASIC companies.※ Application-Specific Integrated Circuit (ASIC)An ASIC is a 'customized chip designed for specific functions.' While Nvidia Corporation manufactures general-purpose GPUs for various applications, ASIC companies design and produce dedicated AI chips optimized for specific uses by specific companies, such as Google's Tensor Processing Unit (TPU) and the AWS Graviton processor.
Samyang Foods Co., Ltd. (003230)— Hanwha Investment & Securities / Researcher Han Yu-jeong
- Target Price: 1,800,000 KRW (maintained)
- Investment Opinion: Buy
Hanwha Investment & Securities evaluated Samyang Foods Co., Ltd.'s revised disclosure on the expansion of its Chinese plant and the decision to sell all treasury shares as factors that will boost mid- to long-term performance. The company plans to increase its production lines from six to eight, raising the total investment from 20.14 billion KRW to 20.72 billion KRW. Researcher Han Yu-jeong noted that the Chinese subsidiary's sales are growing faster than its production volume, resulting in continued supply shortages. Considering the market size and the preference for non-soup ramen, China is still seen as a market with significant potential. The sale of treasury shares is also interpreted as a move to secure additional funds for further plant investment.

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