Seoul: The market capitalization of Samyang Foods Inc., famous for its Buldak spicy ramyeon, has surpassed 10 trillion won (US$7.3 billion) for the first time, driven by strong sales of the Buldak series, as reported by the main bourse on Sunday.
According to Yonhap News Agency, Samyang Foods ranked 54th in market capitalization on Friday, hitting 10.049 trillion won with a closing price of 1,334,000 won per share, as per the Korea Exchange (KRX). The company's stock price has doubled in the past year and has soared from around 40,000 won at the end of 2016, fueled by viral food-eating challenges and the appeal of Buldak ramyeon's intense spiciness.
The company has recently expanded one of its three domestic plants to cater to the growing global demand for its offerings. Beyond its local operations, Samyang is set to commence the construction of its first overseas plant in China next month. Currently, the company has operations in China, Japan, Indonesia, the Netherlands, and the U.S.
In the previous year, Samyang witnessed a 45 percent increase in sales on a year-over-year basis, reaching 1.73 trillion won, mainly due to the strong demand for its Buldak ramyeon series in the U.S. and China. A substantial 77 percent of its total revenue was derived from overseas markets.
Brokerages project that Samyang's operating profit will rise by 51 percent year-over-year to 135.2 billion won in the second quarter, with sales expected to grow by 31 percent to 554.6 billion won.