Samyang sizzles on Buldak boom as stock surges past 1 million won

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Samyang sizzles on Buldak boom as stock surges past 1 million won

Published: 16 May. 2025, 16:25 Updated: 18 May. 2025, 17:59

Audio report: written by reporters, read by AI

A shopper looks at Samyang Foods' Buldak Ramen products at a supermarket in Seoul on March 19. [YONHAP]

Samyang Foods, maker of the spicy viral sensation Buldak Ramen, is on a hot streak. The company's stock price hit 1 million won ($720) for the first time on Monday, heightening shareholders' hopes of owning a so-called "Emperor stock" that cost more than 1 million won apiece.

On the back of strong global sales of its Buldak Ramen line, the company posted record-breaking earnings in the first quarter of this year, while its stocks jumped by more than 10 percent just during the opening hours of Friday's stock market.

Samyang Foods’ stock opened at 1.12 million won on Friday, up 13 percent from the previous day’s close of 991,000 won, according to the Korea Exchange. It touched a high of 1.23 million won in early trading — a 24.45 percent surge — before settling in the upper 1.1 million won range as of 10:45 a.m.

On the alternative trading platform NextTrade’s premarket, it climbed as high as 1.17 million won, up 18.06 percent from the previous session.

If Samyang Foods maintains this trend during the session, it is likely to firmly establish itself as an emperor stock. Although the company’s share price exceeded 1 million won during trading for the first time on Monday, it has yet to close above that mark.

The surge in share price is attributed to a first-quarter earnings surprise that beat market expectations by nearly 30 percent.

The company reported 529 billion won in revenue during the first quarter of this year — up 37 percent on year — and 134 billion won in operating profit, a 67 percent increase. Both figures represent all-time highs for a single quarter. The company said that “balanced growth across the United States, China and Europe led to a strong performance.”

Buldak Bokkeummyeon products are displayed at a supermarket. [YONHAP]

Analysts are also raising their target prices for Samyang Foods.

Hanwha Investment & Securities raised its target from 1.2 million won to 1.7 million won, IBK Securities from 1.08 million to 1.45 million won, Kiwoom Securities from 1.2 million to 1.4 million won, Hana Securities from 1.1 million to 1.35 million won, Kyobo Securities from 1.02 million to 1.33 million won, Yuanta Securities from 1.1 million to 1.31 million won, Korea Investment & Securities from 1.1 million to 1.3 million won and Shinhan Securities from 1.1 million to 1.25 million won.

“Samyang Foods products are currently experiencing supply shortages across all global regions, including the United States, China and Europe,” said Kweon Woo-jeong, an analyst at Kyobo Securities. “For that reason, the company’s second plant in Miryang, which begins full-scale production in July, is expected to reach full capacity by the end of the year.

“The company’s achievement of a 25 percent operating profit margin is also highly encouraging, setting a new benchmark for the Korean food industry.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KO SUK-HYUN [[email protected]]