Taking Favorable Turn

Nongshim's Chinese corporation is forecast to post a slight surplus due to an improvement in its sales volume and a hike in unit prices.
Nongshim's Chinese corporation is forecast to post a slight surplus due to an improvement in its sales volume and a hike in unit prices.

 

"In the third quarter, Nongshim's Chinese corporation is forecast to post a slight surplus due to an improvement in its sales volume and a hike in unit prices backed by the alleviation of THAAD risk," said Sohn Ju-ri, a researcher at KTB Investment & Securities on October 23.

"The market of Chinese bottled water also is expected to grow at a CAGR of 19.1% from 49 billion yuan last year to reach 98.5 billion yuan by 2020," Sohn said. “The premium bottled water market is highly likely to grow in China due to pollution and health concerns, Nongshim's Baeksansu Bottled Water is positioning itself as an upper-mid-priced product in the Chinese market."

"The growth of Nongshim America is remarkable," Sohn said. "Nongshim America stood third with a market share of 11.5 percent in North America last year and its expanding speed is expected to rise.

"The Korean ramen market is estimated at 2.7 trillion won (US$2.4 billion) this year," Sohn added. "I expect a slight increase in Nongshim’s sales in Korea due to high base effects from sales of premium ramen and new products in 2015 and 2016 and a time difference between the Chuseok holiday periods of last year and this year."

 

 

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