Yuanta Securities forecast on 21st July that Nongshim (KOSPI: 004370), South Korea's dominant instant-noodle brand, will report consolidated operating profit of 57.7bn won for the second quarter of 2026, surpassing the market consensus by more than 10%. Revenue for the quarter is expected to reach 936.7bn won, up 7.9% year on year.
Overseas subsidiaries are projected to generate revenue of 313.7bn won, a 29.4% increase from the same period a year earlier. North American sales are forecast at 160.4bn won, up 12.0% year on year, driven by growing mainstream-channel demand for Shin Ramyun — the company's flagship product — and an expansion into local retail chains. European sales are expected to surge 329.3% year on year to 39.5bn won.
Domestic standalone revenue is projected to reach 721.4bn won, up 4.0% year on year. Export sales are expected to grow 15.0% year on year, accelerating from the previous quarter as distribution expands into Eastern Europe and South-East Asia.
There are headwinds, however. Rising costs for packaging materials and palm oil, combined with a high profit base set in the first quarter, are expected to weigh on sequential performance: operating profit is forecast to fall 14.4% from the prior quarter.
Looking further ahead, Yuanta expects Nongshim's international growth platform to strengthen materially once its dedicated export factory in Noksan — a major industrial complex near Busan — begins operations in October. The new facility is expected to significantly expand the company's supply capacity for Europe, Russia, and the broader Commonwealth of Independent States (CIS) region.
Yuanta maintained its Buy recommendation and target price of 530,000 won. The shares were trading at 349,000 won as of 20th July, implying upside of around 52%.