KOSPIHolding Companies072710

Nongshim Holdings

₩89,200 0.00%2026-10-02 close

Market Cap

₩413.2B

Turnover

₩65,289,800

Volume

734 shares

Shares out.

4.6M

PER

3.3×

PBR

0.3×

EPS

₩28,466

Dividend Yield

3.18%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩3,000 per share · Prices as of the 2026-10-02 close

Report overview

Overseas Growth, Profit Recovery, Holding Discount Persists

Nongshim Holdings posted a sharp year-on-year increase in 2025 controlling-interest net income on the back of subsidiary Nongshim's overseas sales expansion and profit recovery, yet as a pure holding company its shares trade under a valuation logic distinct from the operating subsidiary's fundamentals.

1
2025 consolidated revenue was KRW 858.8 billion, operating profit KRW 81.1 billion, and controlling-interest net income KRW 114.6 billion, up sharply from KRW 74.85 billion a year earlier.
2
Operating profit in 1Q26 and 2Q26 came in at KRW 30.89 billion and KRW 34.61 billion respectively, the strongest levels within the recent four-quarter window, signaling margin recovery.
3
An export-dedicated plant at the Noksan National Industrial Complex in Busan is set to begin operations in the second half of 2026, which would expand combined global production capacity together with the US and China units to roughly 2.7 billion units per year.
4
Marketing momentum from the new 'Shin Ramyun Tumba' product and a 'KPop Demon Hunters' collaboration is underpinning sales expansion at the US and European units.
5
The debt ratio rose to 39.0% in 2025 from 32.4% a year earlier, which appears linked to financing for domestic and overseas facility investment.

Business structure

Nongshim Holdings was established in July 2003 through a spin-off of the investment division of Nongshim Co., Ltd., and as a pure holding company it conducts no independent business other than holding company operations, meaning its consolidated results hinge on subsidiary and affiliate performance.

Under the Fair Trade Act it has five subsidiaries—Nongshim, Youlchon Chemical, Nongshim Taekyung (formerly Taekyung Agricultural), Nongshim Development, and Nongshim Engineering—of which Nongshim and Youlchon Chemical are the major subsidiaries by book value.

Nongshim maintains a market share of more than half of the domestic ramyun market and holds the No. 1 position in snacks, with long-running brands such as Shin Ramyun, Neoguri, and Chapagetti forming the core of its sales.

Youlchon Chemical derives 75% of total sales from packaging materials such as film and cardboard and holds a high share of the domestic packaging market, with a substantial portion of revenue coming from intra-group transactions with Nongshim.

Nongshim Taekyung, a wholly owned subsidiary, supplies processed agricultural and marine products such as powder and flakes for ramyun and depends heavily on transactions with Nongshim.

The Nongshim group comprises a total of 42 affiliated companies, and through 15 overseas subsidiaries including Nongshim USA and Shanghai Nongshim Foods it creates production and sales synergies across markets including the United States and China.

In March 2025, it newly established Nongshim Europe B.V. in the Netherlands to strengthen distribution infrastructure for the European market.

As of 2024, Nongshim's overseas sales (overseas subsidiaries plus exports) totaled KRW 1.3037 trillion, of which the US and China subsidiaries accounted for KRW 693.6 billion, more than double the KRW 344.2 billion generated from domestically produced exports, illustrating that the group's overseas growth axis has shifted toward a local-production, local-consumption structure.

Earnings trend

Quarterly revenue · Operating profit

₩174.4B₩18.5B25Q2₩266B₩22.8B25Q3₩227.3B₩14.6B25Q4₩265.4B₩30.9B26Q1₩255.1B₩34.6B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩674.6B₩52.8B2022₩769.5B₩75.3B2023₩798.3B₩86.6B2024₩858.8B₩81.1B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩174.4B	₩18.5B	10.6%
2025Q3	₩266B	₩22.8B	8.6%
2025Q4	₩227.3B	₩14.6B	6.4%
2026Q1	₩265.4B	₩30.9B	11.6%
2026Q2	₩255.1B	₩34.6B	13.6%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩674.6B	₩52.8B	₩34.1B	7.8%	3.2%	28.9%
2023	₩769.5B	₩75.3B	₩67.1B	9.8%	6.0%	33.9%
2024	₩798.3B	₩86.6B	₩74.8B	10.9%	6.1%	32.4%
2025	₩858.8B	₩81.1B	₩114.6B	9.4%	8.7%	39.0%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-17

Earnings analysis

Nongshim Holdings' consolidated revenue rose for four consecutive years, from KRW 674.6 billion in 2022 to KRW 769.5 billion in 2023, KRW 798.3 billion in 2024, and KRW 858.8 billion in 2025.

Operating profit climbed from KRW 52.8 billion in 2022 to KRW 86.6 billion in 2024 before slipping to KRW 81.1 billion in 2025, with the operating margin also declining from 10.9% in 2024 to 9.4% in 2025.

Controlling-interest net income, however, moved in the opposite direction, rising from KRW 34.1 billion in 2022 to KRW 67.1 billion in 2023, KRW 74.8 billion in 2024, and then jumping to KRW 114.6 billion in 2025.

The driver of this surge lies in the third quarter of 2025, when revenue was KRW 266.0 billion and operating profit KRW 22.8 billion, but controlling-interest net income reached KRW 65.0 billion—an unusually large figure relative to operating profit.

Subsidiary Nongshim also reported a 44.7% year-on-year jump in third-quarter 2025 operating profit, which the company attributed to a base effect from the prior-year quarter that had been depressed by July 2023 price cuts on Shin Ramyun and Saeukkang.

That said, the extent to which holding-company-level net income exceeded operating profit is not fully explained by the base effect alone, and readers should keep in mind the possibility of equity-method gains or one-off tax-related items.

Operating profit then eased back to KRW 14.6 billion in the fourth quarter of 2025 before recovering to KRW 30.9 billion and KRW 34.6 billion in the first and second quarters of 2026 respectively, bringing the trailing four-quarter (3Q25-2Q26) sum to KRW 102.9 billion in operating profit and KRW 132.0 billion in controlling-interest net income.

On the cash flow side, operating cash flow swung from a net outflow of KRW 16.7 billion in 2023 to inflows of KRW 55.2 billion in 2024 and KRW 24.7 billion in 2025, broadly tracking the recovery in reported earnings.

Industry analysis

Korea's ramyun industry is currently experiencing simultaneous stagnation in domestic demand growth and a surge in overseas demand.

According to Korea Customs Service data, Korean ramyun exports hit a record high of roughly $1.5 billion (about KRW 2.198 trillion) last year, with distribution channel penetration expanding rapidly in major markets such as the United States and Europe.

Amid this trend, rival Samyang Foods grew rapidly in global markets on the strength of its export-driven 'Buldak' brand, at one point overtaking Nongshim in domestic industry operating profit.

In response, Nongshim has pursued a strategy of increasing the share of local production in the US and China, an approach that does not show up in export statistics but reduces tariff and logistics costs while improving responsiveness to local consumers.

Ottogi has also established a US production subsidiary and is pursuing construction of a California plant targeted to begin operations in 2028, meaning all three major domestic ramyun makers are now competing to expand overseas production bases.

While Samyang secured annual capacity of roughly 1.5 billion units with the completion of its Miryang No. 2 plant, Nongshim is responding with the Busan Noksan export plant and an expansion of its second US plant in an effort to keep pace in the capacity race.

Nongshim has, however, been assessed as relatively behind in terms of overseas sales mix and operating profit scale, making the outcome of the group's overseas expansion a key variable that will shape the competitive landscape over the next several years.

Outlook

To mark its 60th anniversary, Nongshim declared 'Vision 2030,' targeting revenue of KRW 7.3 trillion, an operating margin of 10%, and an overseas sales mix of 61% by 2030.

The core driver of this goal is the export-dedicated plant under construction at the Noksan National Industrial Complex in Busan; once it becomes fully operational in the second half of 2026, combined with existing Busan and Gumi plant volumes it is expected to enable annual production of about 1.2 billion units of export ramyun, while combined global capacity together with the US and China subsidiaries would rise to roughly 2.7 billion units.

In the US market, the new 'Shin Ramyun Tumba' product began selling at Walmart from June, following a fivefold expansion of Walmart main-shelf placement last October.

In addition, a global collaboration with 'KPop Demon Hunters' covering Shin Ramyun Original, Tumba, and Saeukkang has an initial order volume of about KRW 50 billion under a roughly six-month contract, with US volume—produced locally—reflected from mid-September and other regions such as Europe, sourced from Korean exports, reflected from the fourth quarter.

The company has set a goal of raising its US instant noodle market share to No. 1 by 2030.

LS Securities forecast in a June 10, 2026 report that Nongshim's 2026 consolidated revenue would rise 6% year-on-year to KRW 3.7241 trillion and operating profit would increase 19.9% to KRW 220.5 billion, with double-digit profit improvement expected at both domestic and overseas subsidiaries.

The same report noted, however, that profit uncertainty could widen somewhat from the second quarter as rising packaging and raw material costs are gradually reflected.

Valuation

PER

3.3×

PBR

0.3×

ROE

10.1%

EPS

₩28,466

BPS

₩301,166

Dividend per share

₩3,000

As a pure holding company with no independent operating activities, Nongshim Holdings tends to be valued primarily on subsidiary dividend income and equity stake value, which means the holding company's share price movements do not always track subsidiary Nongshim's operating results one-to-one.

Given the sharp year-on-year increase in 2025 controlling-interest net income, the price multiple relative to net income appears to sit in a relatively low range, which can be interpreted as reflecting a discount factor characteristic of pure holding companies.

Relative to net asset value as well, the shares appear to trade at a substantial discount, a pattern that some view as the subsidiaries' business value not being fully reflected in the share price, while others see the discount as an inevitable feature of a holding structure with no separate operating business.

On the dividend front, the company has continued to pay cash dividends each fiscal year, though the absolute level of dividend yield can vary from year to year with dividend policy and share price movements, making it difficult to pin down to a specific figure.

These metrics should be treated as reference information for understanding valuation context rather than as a basis for buy or sell decisions.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-17

Bull factors

Overseas Capacity Expansion and New Product Momentum

Once the Busan Noksan export plant becomes operational in the second half of 2026, combined with existing facilities it will enable annual production of about 1.2 billion units of export ramyun, with global capacity including the US and China subsidiaries rising to roughly 2.7 billion units.

The new 'Shin Ramyun Tumba' product began selling at Walmart from June, and initial volume from the 'KPop Demon Hunters' collaboration is set to be reflected sequentially from the second half. This buildout of production and marketing infrastructure lays the physical groundwork for overseas sales growth.

Confirmed Profit Recovery Trend

Operating profit in the first and second quarters of 2026 came in at KRW 30.9 billion and KRW 34.6 billion respectively, the highest within the recent four-quarter window, recovering from the weak fourth quarter of 2025.

The trailing four-quarter sum reached KRW 102.9 billion in operating profit and KRW 132.0 billion in controlling-interest net income, indicating an expanding profit base on an annualized view. It is a positive sign that profit improvement is being seen at both domestic and overseas subsidiaries.

Holding Company Discount Factor and Net Asset Scale

Controlling-interest equity has grown steadily from KRW 1.0776 trillion in 2022 to KRW 1.3209 trillion in 2025, expanding the net asset base.

The share price appears to trade at a substantial discount to this net asset value, which can be interpreted as reflecting a structural feature characteristic of pure holding companies.

Some observers hold the view that the asset value of subsidiaries such as Nongshim and Youlchon Chemical is not fully reflected in the market price.

Bear factors

Operating Margin Itself Has Actually Retreated

The full-year 2025 operating margin fell to 9.4% from 10.9% in 2024, moving in the opposite direction from the surge in net income.

The jump in controlling-interest net income is largely attributable to the unusual net income figure in the third quarter of 2025, where the gap between operating profit (KRW 22.8 billion) and net income (KRW 65.0 billion) is not fully explained by ordinary business economics.

Net income improvement driven by such non-operating factors is not the type of result that can be expected to repeat every quarter.

Raw Material and Packaging Cost Burden

LS Securities forecast in a June 2026 report that profit uncertainty could widen somewhat from the second quarter as packaging and raw material cost increases are gradually reflected.

Rising sales volumes, advertising cost savings, and a low prior-year base were cited as offsetting factors, but the cost burden has not been fully resolved. The rise in the debt ratio to 39.0% in 2025 from a year earlier also suggests an increase in financial burden tied to facility investment.

Relatively Slower Overseas Growth Pace Versus Rivals

Nongshim has been assessed as relatively behind Samyang Foods, which has led with its 'Buldak' brand, in terms of overseas sales mix and operating profit scale.

Samyang has rapidly expanded global market share through export-driven growth, whereas Nongshim's higher share of local production means its overseas performance is not fully captured in export statistics. Competitive intensity continues to rise as Ottogi also pursues construction of a US production base.

Risk factors

Raw Material and Foreign Exchange Risk

Rising prices for raw materials and packaging needed for ramyun production directly affect subsidiary Nongshim's cost structure, which flows through to holding company earnings via consolidation. As the overseas sales mix grows, exposure to foreign exchange fluctuations also increases.

While an annual contracting strategy for packaging materials is known to be used to minimize the burden, cost pressure is not entirely eliminated.

Governance and Related-Party Transaction Risk

Nongshim Holdings' controlling family is known to hold more than 60% of shares, and subsidiaries Youlchon Chemical and Nongshim Taekyung derive a significant portion of their sales from related-party transactions with affiliate Nongshim.

This transaction structure remains subject to related-party transaction regulations, and any tightening of enforcement or investigation by fair trade authorities could affect affiliate performance and reputation. The company has stated that it is continuing to reduce the share of related-party transactions.

Earnings Volatility Characteristic of a Pure Holding Company

Because a pure holding company with no separate operating business is structurally exposed to deterioration at its subsidiaries and affiliates, holding company results can decline in tandem.

If instances of a large gap between operating profit and controlling-interest net income, as seen in the third quarter of 2025, recur, quarterly earnings predictability could be reduced.

It also remains a structural risk that the holding company's own income sources, such as dividend income, are subject to changes in subsidiary dividend policy.

What to watch next

Mid-to-late November 2026
Nongshim Holdings and subsidiary Nongshim are expected to disclose third-quarter 2026 results — a point to check whether overseas subsidiary growth and margin trends continue year-on-year.
Fourth quarter of 2026
Confirmation of whether the Busan Noksan export plant actually begins operations and the pace of initial production ramp-up. If it launches as planned, it would support increased export volumes in 2027.
From mid-September 2026 onward
Checking the reflection of 'KPop Demon Hunters' collaboration volume in US local sales and its subsequent reflection in export data for regions such as Europe from the fourth quarter.
Fourth quarter of 2026 through early 2027
Checking indicators of expanded shelf presence at major US retailers such as Walmart and Costco and sales performance of Shin Ramyun Tumba.
Around February 2027
Confirmation of the dividend policy announcement and board resolution for fiscal year 2026 — a key point being whether the recent expansion in net income is reflected in dividend policy.

Overall view

As a pure holding company, Nongshim Holdings saw its controlling-interest net income rise sharply year-on-year in 2025 on the back of subsidiary Nongshim's overseas sales expansion and profit recovery, and the operating profit recovery continued into the first half of 2026.

However, the surge in net income in the third quarter of 2025 was an unusual figure that significantly exceeded operating profit, with elements not fully explained by ordinary business economics, warranting attention to whether such patterns recur going forward.

The launch of the Busan Noksan export plant and new-product and collaboration marketing in the US and European markets are cited as growth drivers for the group's overseas business, but rising raw material and packaging costs and the relatively slower pace of overseas growth compared with rivals are factors that should be weighed in a balanced view.

Given the pure holding company structure with no independent operating activities, results are entirely dependent on subsidiary performance and dividend policy, and concentrated ownership by the founding family along with the level of intra-group related-party transactions remain structural variables to monitor.

In terms of valuation, the shares appear to trade at a substantial discount to both net assets and net income, which can be interpreted as reflecting a discount characteristic of pure holding companies.

Investors will need to judge whether the group's earnings improvement continues by tracking observable events such as the upcoming third-quarter earnings disclosure, the Noksan plant's operational launch, and overseas marketing performance.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.