Samyang Food(003230.KS) : Spicy Chicken Flavor Noodle

Company Overview:

The company, a notable player in the Korean Ramen industry, is recognized for its Spicy Stir-fried Chicken Noodles. Capitalizing on the Korean Wave, it's broadening its ramen export market to China and North America.

Investment Highlights:

1. There's a notable increase in the average daily exports of Korean ramyun.

2. The completion of Miryang Plant 2, expected in the second half of 2025, will significantly boost ramen production capacity.

Risks:

Despite exhibiting lower corporate governance issues compared to peers in the Korean food and beverage sector, there are concerns about shareholder returns and the potential misuse of cash reserves.

There's a specific worry that cash could be diverted to other business ventures, such as biotech, rather than being used for self-reinvestment or returning value to shareholders. However, this is deemed unlikely.

Valuation:

If valued in the KRW 160,000 range, both technical and fundamental analysis suggest that the stock is positioned favorably for investment.

Note: For more detailed analysis, refer to the attached file (document in Korean).

20240312_Report_Samyang Food

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