00:00here's a case where the earnings looked great but the stock market shrugged samyang foods and
00:05nongshim korea's two biggest ramen makers both posted operating profit growth of around 40
00:11in the second quarter driven by strong overseas sales and yet both stocks are sitting right
00:17around where they started the year let's look at the actual numbers samyang foods posted
00:23consolidated revenue of 770.3 billion one up 39 year over year operating profit came in at 59.3 billion
00:34one up 48 its u.s subsidiary alone brought in 287.3 billion one up 11 percent nongshim's numbers moved
00:44to revenue of 956.1 billion one up 10 percent and operating profit of 176.2 billion one up 47
00:55percent its overseas subsidiary revenue rose 31 to 328.6 billion one so if profits are up this much
01:06why aren't the stocks moving domestic ramen shipment volume in the first half of the year
01:11rose 26 percent year over year to 920 million units but in july alone that growth rate slowed
01:19to just eight percent market analysts point to that slowdown in export growth as the reason behind
01:25the stalled stock prices and that's their interpretation not a confirmed fact four angles here
01:32from a market perspective this is a textbook gap between fundamentals and price earnings are objectively
01:39strong the stock price isn't rewarding it at least not yet from a policy perspective there's nothing to
01:46report no government policy or regulation shows up in this story at all from a corporate perspective
01:52both companies are riding overseas demand especially in the u.s to post their strongest profit growth
01:58in a while the real question for these companies now is whether that export growth rate keeps decelerating
02:04from an everyday impact perspective this report doesn't mention any change in ramen prices for
02:11consumers so if you're wondering whether your grocery bill is affected that connection isn't
02:16established here here's the line to take away strong earnings don't automatically move a stock price
02:24right now the market is watching the growth rate not just the profit number that's based on
02:29reporting by jong yumin for the seoul economic daily
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