Popularity of Blackac series leads to buying of Samyang Foods shares by individual investors - Korean media

Samyang Foods' stock price soared this year due to the global success of its "Blood Stir-fried Noodles," but the upward trend has stalled recently, with individual investors focusing on buying.
Despite the risk of being a stock that has risen sharply in the past, it has continued to perform well, and there are hopes that the completion of the second Miryang factory next year could provide an opportunity for further growth.
According to the Korea Exchange, individual investors have bought 25.1 billion won (about 2.74 billion yen) of Samyang Foods shares this month, making it the 31st most popular stock in Korea.
During the same period, foreign investors bought 11 billion won (US$11.2 billion) of Samyang Foods shares, while institutional investors sold 37.3 billion won (US$37.3 billion).
Samyang Foods' stock price, which had remained at the 200,000 won (approximately 21,800 yen) range at the beginning of the year, rose to a peak of 700,000 won (approximately 76,300 yen) in June, buoyed by the explosive popularity of its Black Bean Stir-Fry Noodles.
As the stock price soared, the number of small shareholders also increased sharply. According to Samyang Foods' business report, the number of small shareholders nearly doubled from 18,039 at the end of last year to 35,356 at the end of June.
Samyang Foods' stock price has fallen 14.9% this month due to the rapid rise in stock prices in a short period of time and the increasing volatility of domestic and overseas stock markets.
Samyang Foods also recorded its highest ever performance in the second quarter. Consolidated sales for the second quarter increased 48.7% year-on-year to
Sales and operating profit increased 103.% to 89.4 billion won (approximately 9.76 billion yen), both of which were record highs on a quarterly basis.
According to LS Securities, Samyang Foods' exports in July increased 4.9% from the previous month, continuing the upward trend and accounting for 78% of total instant ramen exports.
Cho Sang-hoon, a researcher at Shinhan Investment & Securities, said, "The structural slowdown in domestic consumption and changes in the demographic structure have led to a decline in the domestic drinking
"In a situation where the food market is clearly reaching its quantitative limits, Samyang Foods is an exemplary case," he said. There are concerns about an economic slowdown, especially in the U.S., but the company has secured a loyal fan base with consumer goods.
"Instant noodles are particularly popular among South Korean consumer goods exports, and consumers are looking for them as a consumer item," said Kim Yong Hwan, a researcher at NH Investment & Securities.
"They are not high-value items," he said, adding, "Products that have already secured popularity are likely to continue to show strong sales in the future."
In particular, the completion of the second Miryang factory next year is expected to put further upward pressure on Samyang Foods' stock price.
Jiu said, "Currently, global demand for the BLUDAC series is so high that supply cannot keep up with demand, and the increase in production capacity from next year is expected to lead to improved performance."
"The recent stock price correction is an opportunity," he said.