Only one successful ramen can make the company Great?

 A Korean food maker's Stock Soars, Crowned as "Emperor Stock" Thanks to her ramen

The popularity of a spicy ramyeon (Hot Chicken Flavor) may have started in Korea, but the current explosive growth is happening in the United States and Southeast Asia. This company's stock price has more than tripled over the past year, jumping from 290,000 KRW in April 2024 to 920,000 KRW today, marking a 220% increase. The driving force behind this meteoric rise is, unsurprisingly, the global craze for hot chicken flavor.
The ramen’s signature spicy flavor has been spreading internationally through platforms like TikTok and YouTube. While this trend didn’t start overnight, the speed and scale of its spread remain remarkable.

According to this company's latest business report, export revenues exceeded 1.3 trillion KRW last year, up 65%compared to the previous year. Looking ahead, the popularity of the spicy Ramen is expected to continue. In financial terms, company's sales this year are projected to reach around 2.2 trillion KRW, with operating profit expected to grow to approximately 460 billion KRW. This growing demand is not limited to the U.S.; it is also expanding rapidly across Europe and Southeast Asia. Exports are increasing, and overseas sales now account for 80% of Samyang Foods' total revenue.

Moreover, the strong U.S. dollar relative to the Korean won is providing additional growth momentum, leading to even higher projections for future export earnings. Despite the stock’s rapid rise largely depending on a single product, there are no signs of a pullback in target prices. Leading Korean brokerage firms have all raised their target prices for the company to over 1 million KRW. Some analysts even suggest the stock could reach the 1.2 million KRW range. Currently, forecasts from 15 major securities firms place the average target price at over 1.1 million KRW.

Given the high growth rates historically achieved by Japanese ramen companies in overseas markets, there is little reason to underestimate the company's growth potential. One factor to watch is the potential impact of U.S. tariffs. So far, although tariff concerns persist, they have not negatively affected the company's stock performance. If tariffs were to be imposed, analysts estimate a 3.8% decline in operating profit, but many expect that the spicy ramen's popularity would help the company weather any challenges.

The company is also preparing to expand production. The company plans to open a second factory at its another production site, which will increase annual production capacity from 1.8 billion to 2.5 billion units. Based on a 50% operating rate, this would translate to more than 100 billion KRW worth of additional production value.