Samyang Foods' market cap exceeds $7.3 bil. amid Buldak boom
This photo, taken on March 26, shows Samyang Foods' Buldak ramyeon products on display at a large discount store in Seoul. Yonhap
The market capitalization of Samyang Foods, known for its globally popular Buldak spicy ramyeon, has exceeded 10 trillion won ($7.3 billion) for the first time, helped by robust sales of the Buldak series, the main bourse said Sunday.
On Friday, the company ranked 54th in market capitalization, reaching 10.049 trillion won based on a closing price of 1,334,000 won per share, according to the Korea Exchange (KRX).
Samyang Foods' stock price has doubled from a year earlier and skyrocketed from around 40,000 won at the end of 2016, driven by continued viral food-eating challenges and the popularity of Buldak ramyeon's extreme spiciness.
The company recently expanded one of its three domestic plants to meet rising global demand for its products.
In addition to its domestic facilities, Samyang plans to begin construction of its first overseas plant in China next month. The company currently operates in China, Japan, Indonesia, the Netherlands and the U.S.
Last year, Samyang's sales surged 45 percent on-year to 1.73 trillion won due to strong demand for its Buldak ramyeon series in the U.S. and China. It earned 77 percent of its total revenue from overseas markets.
Brokerages expect Samyang's operating profit will jump 51 percent on-year to 135.2 billion won in the second quarter and sales will rise 31 percent to 554.6 billion won.