Gaon Cable (000500) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Gaon Cable, founded in 1947 as Korea's first cable maker, operates four divisions - power cables, communications cables, specialty cables, and wooden drums - and, alongside power cables that form the large core of its revenue, has recently seen rapid growth in export cables for U.S. data-center busducts, solar power, and power grids. Within the group of its largest shareholder, LS Cable & System (about 47.5%), it handles low- to medium-voltage and industrial cables. On June 16, 2026, it decided on its first-ever bonus (stock dividend) issue since its founding (0.8 new shares per common share, about 13.23 million new shares), and on the same day a disclosure on debt guarantees and product transactions with LS affiliates confirmed its vertical-integration structure. What stands out recently is that, in the middle of a cable-industry super-boom, its revenue growth rate is the highest among peers (+47.4%) and its momentum is diversifying through U.S. local production and exports, bringing last year's P/E of 96x down to around 60x on a forward basis. Even so, that multiple is still high in absolute terms, and having risen 2.5x in six months, considerable super-boom expectations are already priced in, so success hinges on whether U.S. volumes convert into actual earnings.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Wire & Cable” (Shipbuilding, Machinery, Defense & Power Equipment · Machinery & Electrical Equipment), a type typically read first through P/E.
Cable and wire makers build revenue from power-infrastructure spending and project orders, and pass raw-material costs into pricing, so earnings tend to be reasonably steady. That is why trailing P/E, based on actually earned profit, is the first lens.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 202.5%).
- Revenue rose 47.4% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 19.4% higher than a year earlier.
- ROE is 11.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 3.2%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder LS Cable & System 81.62% (corporate)
Controlling bloc incl. related parties 81.63%
With the controlling bloc holding 82%, control is very secure but the free float is thin.
🔎 In-depth analysis Reading
Gaon Cable, founded in 1947 as Korea's first cable maker, is now divided into four divisions: power cables, communications cables, specialty cables, and wooden drums (the large drums cables are wound onto). The large core of its revenue is power cables, centered on underground and low-voltage cables that deliver electricity to public demand such as Korea Electric Power Corporation and to industrial and construction sites. Recently, busducts that carry electricity inside U.S. data centers and export cables for solar power and power grids have been growing rapidly, and local supply through its U.S. production entity (LSCUS) is getting fully under way. Its largest shareholder is LS Cable & System (holding about 47.5%), and Gaon Cable has a strong character as an affiliate that handles low- to medium-voltage and industrial cables within LS Cable & System's strategy of expanding into extra-high-voltage and submarine cables.
The latest close is ₩155,100 and the market capitalization is ₩4.6 trillion. The price sits below its 20-day moving average (₩181,600) and below its 60-day moving average (₩285,708). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 41.1, a neutral level. The one-month change is -39.9%, the three-month change is -57.7%, and the position relative to the 52-week high is -72.5%. Relative strength versus the KOSPI is 88 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 89% of all stocks. Over the past three months it lagged the index by 49.7%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On the surface the valuation is expensive. The P/E ratio (how many times one year's net profit the share price is) is 49.92x and the P/B ratio (how many times book shareholders' equity the share price is) is 9.22x, both high. That said, this P/E is based on last year's (2025) confirmed earnings, which is a limitation - the company is in an inflection phase where profit is growing sharply, so the P/E calculated on last year's figure looks inflated relative to reality. On profitability, ROE (how much is earned in a year on shareholders' equity) of 10.6% is on the sound side within the industry, but the operating margin of 3.1% is thin. In other words, revenue is growing sharply but margins are not thick, given the nature of a cable business where raw materials (copper) make up a large share. The debt ratio (debt relative to shareholders' equity) of 184.8% is on the high side, and an interest coverage ratio of 1.95x means there is not much room to cover interest with the operating profit earned. The dividend yield of 0.03% is effectively nil.
The growth trend is clear. Revenue rose from ₩1.07 trillion in 2021 to ₩2.55 trillion in 2025, an annual average of about 24% over five years, and net profit grew far more steeply over the same period, from ₩5.9 billion to ₩51.4 billion. In particular, 2025 saw growth accelerate, with revenue +47.4%, operating profit +75.9%, and net profit +102.7%. In the first quarter of 2026 (cumulative), growth continued with revenue +19.4%, operating profit +27.2%, and net profit +28.3%. The company expects record revenue this year on U.S. data-center and power-grid demand, and sees busduct revenue growing from tens of billions to hundreds of billions of won and export cables for AI and solar power growing from about ₩100 billion to ₩200 billion. Reflecting this second-half expansion, this year's net profit could grow to the low-to-mid ₩80 billion range, in which case the forward P/E based on the current market cap comes down to around 60x, well below last year's 96x - in other words, this is a phase where the earnings-growth trajectory must be viewed alongside the headline P/E.
The core of recent disclosures is twofold. First, on June 16, 2026, the company decided on its first-ever bonus (stock dividend) issue since its founding (0.8 new shares per common share, about 13.23 million new shares, record date July 1, new-share listing July 23). Funded from capital surplus (share premium), the aim is to increase the number of shares outstanding to boost the free float and trading; unlike a paid-in capital increase, where the market cap itself grows, the per-share price and EPS are adjusted proportionally. Second, on the same day a disclosure on debt guarantees for others (affiliates) and changes to product and service transactions with LS affiliates emerged, confirming a structure in which raw and subsidiary materials and volumes flow within the LS Cable & System-centered vertical integration. Beyond that, the large-enterprise-group status report and the corporate-governance report were filed on a regular basis.
The strengths are clear. It sits in the middle of a cable-industry super-boom (AI data-center power, U.S. power-grid replacement, expanded grid investment), its revenue growth rate is the highest among peers (+47.4%), and its growth engine is diversifying through U.S. local production, busducts, and exports. Last year's P/E of 96x is high, but on a forward basis that accounts for the earnings inflection it comes down to around 60x. The cautions are equally clear. Even lowered to a forward basis, the absolute multiple is still on the high side (because it centers on thin-margin low- to medium-voltage cables, the quality of earnings is lower than some peers with a large extra-high-voltage and submarine share), and with the share price up 2.5x in six months, super-boom expectations are already substantially priced in. The high debt ratio, the lack of dividend appeal, and the sensitivity of earnings to copper prices and the timing of order conversion are all worth watching too. In short, the growth is real, but much of that growth is already reflected in the price, so success hinges on whether super-boom demand and U.S. volumes convert into earnings as much as expected.
🔎 Valuation vs peers Overvalued
A comparison against listed cable and power-cable makers and adjacent power-equipment companies (Taihan Cable & Solution = extra-high-voltage and submarine expansion, Iljin Electric = power equipment, LS = an operating holding company).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Taihan Cable & Solution | 63.77x | 3.39x | 5.26% |
| Iljin Electric | 27.04x | 4.66x | 19.39% |
| LS | 37.85x | 2.03x | 7.35% |
The headline P/E of 96.7x is based on last year's confirmed earnings, so it looks excessive for a stock at an earnings inflection. On a forward basis that reflects the second-half expansion of busducts and U.S. exports, it comes down to around 60x, making it hard to declare it expensive on last year's P/E alone. That said, even lowered to a forward basis, the absolute multiple is still on the high side among peers, and because it centers on thin-margin low- to medium-voltage cables with an operating margin of 3.1%, the quality of earnings is lower than at Taihan Cable & Solution, which has a large extra-high-voltage and submarine share, or the power-equipment maker Iljin Electric. Viewed together with the share price rising 2.5x in six months, super-boom expectations are judged to be already substantially priced in, so we lean toward Overvalued. Since the growth itself is real, there is room for a re-valuation if the expected conversion into earnings is confirmed.
Price history Close · MA20 · MA60
The latest close is ₩155,100 and the market capitalization is ₩4.6 trillion. The price sits below its 20-day moving average (₩181,600) and below its 60-day moving average (₩285,708). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 41.1, a neutral level. The one-month change is -39.9%, the three-month change is -57.7%, and the position relative to the 52-week high is -72.5%. Relative strength versus the KOSPI is 88 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 89% of all stocks. Over the past three months it lagged the index by 49.7%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -49.73% / 6M +51.09% / 12M +26.25%
Key metrics Computed vs whole-market median
Valuation
The P/E of 49.92x is above the whole-market median (12.97x). The P/B of 9.22x is above the whole-market median (0.84x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is 11.1%, above the whole-market average (3.0%). The operating margin is 3.2%. The debt ratio is 202.5%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.1B | $1.2B | $1.8B | +47.40% ↑ faster |
| Operating profit | $30.7M | $31.6M | $55.6M | +75.94% ↑ faster |
| Net profit | $12.6M | $17.8M | $36.1M | +102.71% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $751.9M | $995.1M | $1.1B | $1.2B | $1.8B |
| Operating profit | $11.6M | $20.0M | $30.7M | $31.6M | $55.6M |
| Net profit | $4.1M | $7.4M | $12.6M | $17.8M | $36.1M |
| Revenue CAGR | 4-yr avg 24.18% | ||||
Revenue rose 47.4% year over year (2023 ₩1.5 trillion → 2024 ₩1.7 trillion → 2025 ₩2.5 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 75.9% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 24.2%. The two-year revenue CAGR is 30.3%. In the most recent quarter (Q1 2026), revenue was 19.4% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- ROE of 11.1% points to solid profitability.
- Revenue grew 47.4% year over year, a sign of growth.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-06-16FilingDecision on the first-ever bonus (stock dividend) issue since founding - 0.8 new shares per common share (about 13.23 million new shares), record date 2026-07-01, new-share listing 2026-07-23. Funded from capital surplus (share premium of about ₩66.2 billion).The number of shares outstanding rises from about 16.54 million to about 29.77 million, increasing free-float and trading liquidity. Market cap and P/E are unchanged; only the per-share price and EPS are adjusted proportionally. Source
- 2026-06-16FilingDisclosure on the suspension and resumption of trading related to the bonus issue (ex-rights and related procedures).A short-term price-adjustment event from ex-rights processing of the bonus issue - a procedural matter rather than a change in corporate value. Source
- 2026-06-16FilingDisclosure on a decision on debt guarantees for others and changes to product and service transactions with a related party (LS affiliate).Reconfirms a structure in which raw and subsidiary materials and volumes flow within the LS Cable & System-centered vertical integration. Reliance on affiliate transactions and the burden of debt guarantees are points to watch. Source
- 2026-06-01FilingLarge-enterprise-group status disclosure - regular disclosure of membership in the LS business group. Largest shareholder LS Cable & System (about 47.5%).Confirms the ownership structure and affiliate relationships. Supports the division of roles in which parent LS Cable & System handles extra-high-voltage and submarine cables while Gaon Cable handles low- to medium-voltage and industrial cables. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 consolidated revenue | 2 5,457 | 2 5,457 | Confirmed | link |
| Largest shareholder (LS Cable & System) stake | LS | approx. 47.5% | Confirmed | link |
| Number of new shares in the 2026 bonus issue | approx. 1,654 (base) | approx. 1,323 | Confirmed | link |
| 2026 expected net profit (forward) | approx. 840 (self-estimate) | — | Unverified | link |
Recent filings Source
- 2026-06-01OwnershipLargest-shareholder ownership change report
- 2026-06-01OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-01Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-28OwnershipLargest-shareholder ownership change report
- 2026-05-28OwnershipAmended filing
- 2026-05-28OwnershipOwnership-change filing
- 2026-05-26OwnershipLargest-shareholder ownership change report
- 2026-05-26OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-18OwnershipLargest-shareholder ownership change report
- 2026-05-18OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15OwnershipLargest-shareholder ownership change report
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.