According to recent data from the Korea Agro-Fisheries & Food Trade Corporation and the Korea Customs Service, the export value of Korean ramen increased by 13.5% last year, reaching a total of US$765.43 million. When accounting for sales from overseas local factories, the total overseas sales of Korean ramen exceeded 2 trillion won, surpassing domestic sales. Nongshim's Shin Ramyun, one of the leading brands in the market, recorded overseas sales of 500 billion won and domestic sales of 430 billion won in 2021. The popularity of Korean ramen is expected to continue this year, with domestic ramen exports already breaking the all-time record in the first half of the year.
Nongshim has been at the forefront of the K-Ramen wave and has seen significant growth in the U.S. market. The company experienced a 40.1% surge in U.S. sales in the first quarter of this year compared to the same period last year. Nongshim's Shin Ramyun and Shin Ramyun Black have been driving this growth. Last year, sales of Shin Ramyun packs increased by 32% and sales of Shin Ramyun Black increased by 20%. Nongshim's success in the U.S. market can be attributed to its focus on taste and quality, with Shin Ramyun Black being recognized as the best ramen in the world by The New York Times.
To meet the growing demand for ramen in the U.S., Nongshim completed its second plant in the country last year, increasing its annual ramen production by more than 70%. The company aims to become the number one player in the U.S. ramen market by 2030 and is considering setting up a third factory. Nongshim also has its sights set on expanding beyond the U.S. to neighboring countries like Mexico, where there is a favorable market for spicy flavors and a high consumption of chili peppers.
Switching gears, in other news, NH Investment & Securities has raised its target price for POSCO Future M to W560,000. However, they have downgraded their rating to Hold due to limited upside potential. The change in valuation method reflects an increase in mid/long-term supply contracts. NH Investment & Securities believes that a discounted cash flow (DCF) valuation method is more accurate in reflecting changes in the company's business environment. They arrive at a fair market cap of W44tn and a target price of W560,000.
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