[Featured stock] Samyang Foods, net profit decreases due to the strong won… Dropped around 6% in early trading

Samyang Foods [003230] stock price is falling more than 6% in the early trading on the 9th.

As of 9:27 am on this day, Samyang Foods' stock price in the stock market was 1,138,000 won, down 6.72% from the previous price.

The stock price began trading at 1,169,000 won, down 4.18%, and at one point was traded at 1,099,000 won, down 9.92%.

Samyang Foods' decreased net profit in the third quarter appears to be a negative factor.

Samyang Foods announced on the 6th, the previous trading day, that its net profit for the third quarter was KRW 89.2 billion, down 18.9% from the same period last year. This appears to be due to a loss in the valuation of foreign currency assets due to the decline in the won/dollar exchange rate (strength of the won).

Operating profit in the third quarter was KRW 196.2 billion, up 49.9% from the same period last year, and sales were KRW 791.8 billion, up 25.3%.

Park Seong-ho, a researcher at LS Securities, said, "Major variables in performance for the time being include the impact of the strong won and a temporary delay in sales recognition due to a change in local European customers. However, in the fourth quarter, growth centered on the U.S. and deferred sales from European subsidiaries are expected to be partially reflected."

He added, “The current stock price is a result of concerns over profit burden due to the strong won,” adding, “It is time to pay attention to the growth momentum that will offset the exchange rate burden next year.”