Corporate Logo(source: nongshim.com)
Hyundai Motor Securities announced on July 4 that it is maintaining its “Buy” rating and target price of 520,000 won for Nongshim (004370).
Analyst Ha Hee-ji commented, “Starting in the second quarter, the full impact of domestic price hikes is expected to be reflected, and profitability should improve through enhanced cost and SG&A efficiency. However, it is somewhat disappointing that overseas profit growth is slowing due to continued promotional spending aimed at global expansion.”
She added, “In the second half of the year, domestic consumption is expected to recover, and there remains potential for price increases in the U.S. market. If the global performance of ‘Shin Ramyun Tumba’ becomes visible, the company could gain renewed momentum.”
For the second quarter, Ha forecasted Nongshim’s domestic standalone revenue to rise 2.4% year-on-year, with operating profit increasing by 49.8%. Overseas revenue is projected to grow by 2.1%, while operating profit is expected to decline by 15.4%.
On a consolidated basis, she projected revenue of 886.8 billion won, up 3.0% year-on-year, and operating profit of 48 billion won, up 9.8%, which she noted would fall short of market consensus.
*[KOSPI]Nongshim(004370) primarily engages in the production and sale of food products such as noodles, snacks, and beverages, exporting major products to over 100 countries worldwide. Market capitalization is 2.46 trillion won(as of July 3, 2025, closing price).
Corporate Logo(source: nongshim.com)
Hyundai Motor Securities announced on July 4 that it is maintaining its “Buy” rating and target price of 520,000 won for Nongshim (004370).
Analyst Ha Hee-ji commented, “Starting in the second quarter, the full impact of domestic price hikes is expected to be reflected, and profitability should improve through enhanced cost and SG&A efficiency. However, it is somewhat disappointing that overseas profit growth is slowing due to continued promotional spending aimed at global expansion.”
She added, “In the second half of the year, domestic consumption is expected to recover, and there remains potential for price increases in the U.S. market. If the global performance of ‘Shin Ramyun Tumba’ becomes visible, the company could gain renewed momentum.”
For the second quarter, Ha forecasted Nongshim’s domestic standalone revenue to rise 2.4% year-on-year, with operating profit increasing by 49.8%. Overseas revenue is projected to grow by 2.1%, while operating profit is expected to decline by 15.4%.
On a consolidated basis, she projected revenue of 886.8 billion won, up 3.0% year-on-year, and operating profit of 48 billion won, up 9.8%, which she noted would fall short of market consensus.
*[KOSPI]Nongshim(004370) primarily engages in the production and sale of food products such as noodles, snacks, and beverages, exporting major products to over 100 countries worldwide. Market capitalization is 2.46 trillion won(as of July 3, 2025, closing price).