Corporate Logo(source: nongshim.com)
Korea Investment & Securities Co.,Ltd reported on June 30 that Nongshim (004370) is likely to slightly fall short of market expectations for its second-quarter results. However, attention should shift to the potential increase in Shin Ramyun sales in the second half of the year.
Korea Investment & Securities maintained a ‘Buy’ rating on the stock and kept its target price unchanged at 520,000 won.
Analyst Kang Eun-ji estimated Nongshim’s Q2 operating profit at 46.8 billion won, a 7.2% year-on-year increase but 7.9% below the consensus forecast.
She attributed the shortfall to “increased marketing expenditures in overseas operations,” emphasizing that “investments in marketing should lead to higher Shin Ramyun sales abroad, which warrants close attention.”
Kang noted that the Q2 rollout of "Shin Ramyun Tomba" was limited to select Walmart and Costco stores in the Los Angeles area, with broader distribution expected to begin in the second half of the year.
She added that export volumes to Europe are also anticipated to increase as Nongshim’s new European sales subsidiary begins full-scale operations in the latter half of the year.
*[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 2.39 trillion won (as of June 27, 2025, closing price).
Corporate Logo(source: nongshim.com)
Korea Investment & Securities Co.,Ltd reported on June 30 that Nongshim (004370) is likely to slightly fall short of market expectations for its second-quarter results. However, attention should shift to the potential increase in Shin Ramyun sales in the second half of the year.
Korea Investment & Securities maintained a ‘Buy’ rating on the stock and kept its target price unchanged at 520,000 won.
Analyst Kang Eun-ji estimated Nongshim’s Q2 operating profit at 46.8 billion won, a 7.2% year-on-year increase but 7.9% below the consensus forecast.
She attributed the shortfall to “increased marketing expenditures in overseas operations,” emphasizing that “investments in marketing should lead to higher Shin Ramyun sales abroad, which warrants close attention.”
Kang noted that the Q2 rollout of "Shin Ramyun Tomba" was limited to select Walmart and Costco stores in the Los Angeles area, with broader distribution expected to begin in the second half of the year.
She added that export volumes to Europe are also anticipated to increase as Nongshim’s new European sales subsidiary begins full-scale operations in the latter half of the year.
*[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 2.39 trillion won (as of June 27, 2025, closing price).