Taihan Cable & Solution (001440) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Taihan Cable & Solution makes power cables that carry electricity, with its mainstays being extra-high-voltage cable that sends power from generation to cities, submarine cable, and high-voltage direct current (HVDC) cable that reduces losses over long distances; recently, AI data-center power-infrastructure investment in the US and Singapore has pulled this high-margin volume into revenue. In June 2026 it signed a turnkey contract with Korea Electric Power Corporation for 500 kV HVDC XLPE cable worth ₩133.0 billion, and in Q1 it posted a record quarterly operating profit of ₩60.4 billion and its highest-ever order backlog (₩3.8 trillion), though a valuation loss on the derivative attached to a convertible bond (non-cash and one-off) left Q1 net income slightly negative. What stands out lately is that global grid replacement and AI power demand together have put extra-high-voltage and HVDC in a structural growth phase, an earnings inflection with operating profit rising clearly, a strength that should be weighed alongside a heavy 218% debt-to-equity ratio and negative cash flow from large capital investment.
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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
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue rose 10.5% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 26.6% higher than a year earlier.
- ROE is 5.3% (controlling-interest basis). It is above the sector average.
- Operating margin is 4.2%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder Hoban Industrial 41.95% (corporate)
Controlling bloc incl. related parties 41.97%
With the controlling bloc holding 42%, the ownership structure is stable.
🔎 In-depth analysis Reading
Taihan Cable & Solution makes power cables that carry electricity. Its big revenue pillars are extra-high-voltage cable that sends power from generation to cities, submarine cable that links electricity beneath the sea, and high-voltage direct current (HVDC) cable that reduces losses when sending power over long distances. Added to that are medium- and low-voltage cables used in apartments and factories, plus an aluminum and copper materials business. What has lifted recent results is high-margin extra-high-voltage and HVDC projects: as power-infrastructure investment tied to the spread of AI data centers has grown in the US, Singapore and elsewhere, this high-margin volume has started to be booked as revenue, and that is the key.
The latest close is ₩27,400 and the market capitalization is ₩5.4 trillion. The price sits above its 20-day moving average (₩26,790) and below its 60-day moving average (₩37,623). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 47.2, a neutral level. The one-month change is -10.3%, the three-month change is -60.4%, and the position relative to the 52-week high is -62.1%. Relative strength versus the KOSPI is 53 (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 53% of all stocks. Over the past three months it lagged the index by 49.1%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On 2025 net profit, the P/E ratio (how many times one year's net profit the price represents) is 63.77x, which looks high. But that P/E is a trailing figure (last year's results) that does not capture the current phase of rapidly rising profit. In fact 2025 operating profit was ₩128.6 billion while net profit was ₩84.2 billion, and in Q1 2026 operating profit was a record ₩60.4 billion yet net income was slightly negative. The Q1 net loss was not because operations worsened but because of a valuation loss on a derivative attached to a convertible bond (a non-cash accounting loss booked as the share price rose). That conversion is already complete, so the same loss is not a recurring factor going forward. On the balance sheet, the debt-to-equity ratio is heavy at 218%, and the interest-coverage ratio (how many times operating profit covers interest) is below 1x, so the interest burden is large. EV/EBIT (enterprise value including debt divided by operating profit, an extended P/E) is 55x, and net debt (total borrowings minus cash) is about ₩466.8 billion. The FCF yield (cash actually generated relative to market cap) is -5%, because the company is currently in an investment phase pouring cash into a second submarine-cable plant and a US plant, leaving cash flow negative. The P/B (price relative to net asset value) is 3.39x, actually lower than peer cable and power-equipment makers, and ROE (how much it earns on equity in a year) is 5.3%, still low under the interest burden.
Revenue grew at a roughly 16% annual average over five years, from about ₩2 trillion in 2021 to ₩3.64 trillion in 2025, and operating profit more than tripled over the same span, from ₩39.5 billion to ₩128.6 billion. The point where the quality of growth changed was Q1 2026: revenue rose 26.6% year on year, but operating profit rose 122.9% (₩60.4 billion), far outpacing revenue growth. That means the share of high-margin extra-high-voltage and HVDC projects has grown, so this is a phase where the margin itself is rising, not just top-line expansion. Q1 net income was slightly negative, but that was due to the non-cash, one-off valuation loss on the convertible-bond derivative, and with the conversion complete it is not a recurring factor. The order backlog at the end of Q1 was ₩3.8273 trillion, a record high, so work already secured will be recognized as revenue in sequence. The basis for this year's rising profit is clear: as data-center power demand and aging-grid replacement drive more orders for extra-high-voltage, submarine and HVDC, this high-margin volume keeps lifting results.
The biggest item is the ₩133.0 billion 500 kV HVDC XLPE cable turnkey contract signed with Korea Electric Power Corporation in June 2026. As a national core-grid project that reliably delivers east-coast generation power to the capital region, this order validates the competitiveness of HVDC, the company's strategic product. In April it fair-disclosed preliminary Q1 2026 results (operating profit ₩60.4 billion, a record for a quarter) and held an investor briefing (IR) around the same time. April also saw a disclosure of conversion-rights exercise: the convertible bond issued for land payment being converted into shares, which reduced debt and increased equity, though it is also a dilution factor as share count rises. On the funding side, proceeds raised via a rights offering are earmarked for facility investment such as the second submarine-cable plant and a local US plant. In May it also decided to acquire tangible assets (production facilities), signaling intent to expand extra-high-voltage and submarine capacity.
The strengths are clear. With global grid replacement and expansion overlapping AI-data-center power demand, extra-high-voltage, HVDC and submarine cable are in a structural growth phase, and Taihan sits at the center of that flow with a record order backlog (₩3.8 trillion) and its highest-ever quarterly operating profit. Worth noting are the step-up in operating margin and the fact that its P/B is the lowest among peer cable and power-equipment makers. Even if the P/E on last year's net profit looks high, that burden eases considerably when measured against this year's rapidly rising profit. The caution is the financial structure. With a 218% debt-to-equity ratio, the interest burden is heavy, so a swing in rates or in raw materials (copper, aluminum) can compress the thin margin. Cash flow being negative for a while due to large capital investment could also become a burden if the cycle cools. In sum, the picture is stronger as extra-high-voltage and HVDC orders are recognized as revenue and the balance sheet improves through convertible-bond conversion, and weaker if project recognition is delayed or interest and raw-material burdens grow.
🔎 Valuation vs peers Fairly valued
A domestic listed peer set from the grid and cable ecosystem, made up of cable and power-equipment makers exposed to high-voltage infrastructure such as extra-high-voltage, HVDC and submarine.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Iljin Electric | 27.04x | 4.66x | 19.39% |
| Gaon Cable | 49.92x | 9.22x | 11.12% |
| Daewon Cable | 128.69x | 8.39x | 8.57% |
| LS ELECTRIC | 105.98x | 14.69x | 16.36% |
On last year's net profit alone, the P/E (69.7x) looks high, but that is a figure computed on last year's results at the start of an earnings inflection and does not capture the current phase. In particular, Q1 net income was negative because of a non-cash, one-off valuation loss on a convertible-bond derivative, and that factor disappears now that the conversion is complete. Across the peer set, grid-related names broadly carry high multiples, with Iljin Electric at 29x, Gaon Cable at 71x, Daewon Cable at 120x and LS ELECTRIC at 105x, so Taihan sits in the middle of that range. On net-asset terms, its P/B of 3.67x is clearly lower than Gaon Cable (7.54x), Iljin Electric (5.16x) and LS ELECTRIC (14.6x), the most discounted position among the peers. Given the trajectory of operating profit rising clearly in 2026 from ₩128.6 billion in 2025 (already ₩60.4 billion in Q1), it is hard to call it excessively expensive relative to its growth. That said, with an operating margin lower than peers (Iljin Electric 7.4%), a heavy financial burden, and earnings volatility tied to project-recognition timing, we see it as fairly valued, a balance of growth expectations and financial burden, rather than a clear-cut undervaluation.
Price history Close · MA20 · MA60
The latest close is ₩27,400 and the market capitalization is ₩5.4 trillion. The price sits above its 20-day moving average (₩26,790) and below its 60-day moving average (₩37,623). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 47.2, a neutral level. The one-month change is -10.3%, the three-month change is -60.4%, and the position relative to the 52-week high is -62.1%. Relative strength versus the KOSPI is 53 (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 53% of all stocks. Over the past three months it lagged the index by 49.1%. 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 -49.15% / 6M -19.18% / 12M -9.27%
Key metrics Computed vs whole-market median
Valuation
The P/E of 63.77x is above the whole-market median (12.97x). The P/B of 3.39x is above the whole-market median (0.84x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
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.
Intrinsic value (DCF estimate) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
DCF (discounted cash flow) estimate — discount rate 6.5%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 5.3%, above the whole-market average (3.0%). The operating margin is 4.2%. The debt ratio is 119.5%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.0B | $2.3B | $2.6B | +10.47% ↓ slower |
| Operating profit | $56.1M | $80.9M | $90.4M | +11.67% ↓ slower |
| Net profit | $49.6M | $49.5M | $59.2M | +19.55% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.4B | $1.7B | $2.0B | $2.3B | $2.6B |
| Operating profit | $27.7M | $33.8M | $56.1M | $80.9M | $90.4M |
| Net profit | $19.6M | $14.5M | $49.6M | $49.5M | $59.2M |
| Revenue CAGR | 4-yr avg 16.15% | ||||
Revenue rose 10.5% year over year (2023 ₩2.8 trillion → 2024 ₩3.3 trillion → 2025 ₩3.6 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 11.7% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 16.2%. The two-year revenue CAGR is 13.1%. In the most recent quarter (Q1 2026), revenue was 26.6% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- Revenue grew 10.5% 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
- 2026-06-08UpdateSigned a single-supply contract with Korea Electric Power Corporation for a 500 kV HVDC XLPE cable turnkey (supply and installation) worth ₩133.0 billion (east coast to capital-region national grid).Validates competitiveness in HVDC, a strategic product. Mid-term positive, as a larger order backlog strengthens revenue and profit visibility. Source
- 2026-04-29EarningsFair-disclosed preliminary Q1 2026 consolidated results: revenue ₩1.0834 trillion (+26.6%), operating profit ₩60.4 billion (+122.9%, a record for a quarter).Confirms a step-up in profitability as high-margin extra-high-voltage and HVDC volume is recognized (short- and mid-term positive). Net income was slightly negative on a non-cash, one-off valuation loss on the convertible-bond derivative. Source
- 2026-05-13FilingDecision to acquire tangible assets, expanding production capacity for extra-high-voltage, submarine and other cables.Signals intent to expand high-margin capacity. A mid-term growth base, though the investment burden and whether it is debt-funded bear watching (mid-term neutral to positive). Source
- 2026-04-21FilingExercise of conversion rights, converting into shares the convertible bond issued for land payment (reducing debt and adding equity).Positive for the balance sheet through lower debt, but a dilution factor as share count rises (mid-term mixed). Source
- 2026-04-20IRNotice of an investor briefing (IR).Strengthens communication on results and strategy (neutral). Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 operating profit | ₩60.4 billion | ₩60.4 billion | Confirmed | link |
| Q1 2026 revenue | 1₩83.4 billion(+26.6%) | 1₩83.4 billion | Confirmed | link |
| June KEPCO supply-contract size | — | approx. ₩133.0 billion, 500kV HVDC XLPE | Confirmed | link |
| 2026 full-year operating profit (forecast) | self-estimate approx. 1,900~₩200.0 billion | — | Unverified | link |
Recent filings Source
- 2026-06-08Single supply/sales contract
- 2026-05-28Corporate governance report
- 2026-05-28Large-business-group status disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-13Disclosure
- 2026-05-13OwnershipOwnership-change filing
- 2026-04-29EarningsFair-disclosure notice
- 2026-04-23Single supply/sales contract (amended)
- 2026-04-22Disclosure
- 2026-04-21Amended filing
- 2026-04-21Disclosure
- 2026-04-20Disclosure
📖 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.