Cosmetics Stocks Next, Then Tobacco and Buldak? KT&G and Samyang Foods Move Closer to Record Highs

[Financial News] KT&G and Samyang Foods are drawing strong investor attention as both companies are forecasting record-high earnings. The two consumer goods makers, which rely on products with strong brand loyalty, are continuing rapid profit growth, and investors are watching to see whether their share prices will follow earnings and approach all-time highs.
According to FnGuide on the 27th, KT&G's expected earnings per share (EPS) for this year are 12,547 won, up 39.8% from a year earlier. Samyang Foods' expected EPS is also estimated at 74,962 won, up 45.0%. Both companies are expected to post their highest EPS since 2011.
KT&G's flagship product is tobacco, while Samyang Foods is best known for its spicy Buldak Ramen. Although their products differ, both companies are growing by focusing on items with strong consumer preference. Another similarity is that they are expanding overseas rather than remaining dependent on the domestic market, which is helping them increase profits.
What the market is watching is the gap between record earnings and share prices that have not yet reached their highs. Analyst Hyun-guk Ahn of Hanwha Investment & Securities said, "Stock prices are a function of earnings." He added, "Gaps between earnings and stock prices often emerge depending on changes in the macro environment, company-specific issues, or industry conditions."
As of the closing price on the day, KT&G stood at 173,900 won, 9.6% below its highest level since 2011 of 192,400 won. Samyang Foods was trading at 1.48 million won, 11.1% below its record high of 1.665 million won. Earnings are expected to rise to their highest levels ever, but share prices have not yet broken through their peaks.
By contrast, cosmetics stocks that meet similar conditions have already largely reflected improved earnings in their share prices. Cosmax has reached its highest level since 2011 at 289,000 won, while Kolmar Korea is just 0.6% away from its record high. COSMECCA KOREA is also only 3.1% below its peak.
Samyang Foods also continues to draw expectations for future earnings growth. According to Hana Securities, the company's overseas sales in the second quarter reached 645.8 billion won, up 46.7% from a year earlier. Sales in the United States and China rose 54.2% and 44.1%, respectively, while exports to Europe surpassed 100 billion won for the first time in a quarter, emerging as a new growth engine.
Analyst Eun-ju Sim of Hana Securities said, "Consumer preference for the Buldak brand remains solid." She added, "Given its penetration and growth potential, Europe has the scalability to surpass the United States and China." She also noted, "Once the new plant in China begins full-scale operations, existing production capacity can be used to expand into the U.S. and European markets, which is another future growth driver."
[email protected] Choi Du-seon Reporter