Business · Companies · 3 hrs ago
Hanwha keeps buy rating on Samyang Foods despite currency concerns
Hanwha Investment & Securities kept its buy rating on South Korean food maker Samyang Foods and maintained a target price of 1.8 million won.
The call came after Samyang shares fell 8.9%, more than the KOSPI’s 1.5% drop, as the won strengthened against the US dollar.
Overseas sales account for 83% of Samyang’s revenue, so a stronger won can reduce the value of those sales when converted into won and weigh on profitability.
But the analyst said foreign-exchange moves do not directly change overseas shelf prices, which are set in local currencies.
Samyang has raised overseas prices before, and its retail sales grew 51% in 2022 and 38% last year despite price increases, according to the analyst.
Higher wheat, energy, transport and palm oil costs could provide grounds for another price increase next year.
Whether price rises and cost controls protect profits will become clearer in future earnings.
Hanwha Investment & Securities kept its buy rating and 1.8 million won target price for Samyang Foods.
Analyst Han Yoo-jung said concerns that a stronger won would weaken profitability were already reflected in the share price.
Samyang Foods’ shares fell 8.9% the previous day, more than the KOSPI’s 1.5% decline.
Han said the company’s overseas price competitiveness remained intact because local-currency pricing does not directly change when the won strengthens.
She said strong demand and the ability to pass on higher costs could help protect profitability.
- Who
- Hanwha Investment & Securities and Samyang Foods. Analyst Han Yoo-jung provided the assessment.
- What
- Hanwha maintained its buy rating and 1.8 million won target price for Samyang Foods despite currency concerns.
- When
- The assessment was reported on October 27, 2026.
- Where
- Not stated
- Why
- Hanwha said the impact of a stronger won was already reflected in the share price and that Samyang Foods retained overseas pricing competitiveness.
This story does not have two clearly opposing sides.
Samyang Foods shares fell 8.9%, while the KOSPI declined 1.5%.
Hanwha Investment & Securities maintained its buy rating and 1.8 million won target price.
- Rating
- Buy, maintained
- Target price
- 1.8 million won, maintained
- Previous-day share move
- Samyang Foods fell 8.9%; KOSPI fell 1.5%
- Overseas sales share
- 83%
- Samyang Foods retail sales growth
- 51% in 2022 and 38% last year
1 source
What people are saying
Concerns about weaker profitability due to the stronger won have already been reflected in the share price.
Its price competitiveness overseas remains unchanged.
Overseas selling prices are set in local currencies, so a stronger won does not directly change consumer prices.
The concerns about weaker profitability due to the exchange-rate decline have already been reflected in the share price.