Taihan Cable & Solution makes power cables that carry electricity. Its mainstays are extra-high-voltage cables that send power from power plants to cities, submarine cables laid on the seabed, and high-voltage direct current (HVDC) cables that reduce losses to send power over long distances; recently, investment in power infrastructure for AI data centers in the United States and Singapore has lifted this high-margin volume into revenue. In June 2026 the company signed a ₩133.0 billion turnkey contract with Korea Electric Power Corporation for 500kV HVDC XLPE cable, and it posted a record quarterly operating profit of ₩60.4 billion in the first quarter and a record-high order backlog (₩3.8 trillion), though its first-quarter net result was a loss due to interest burden. The strengths are that grid replacement worldwide combined with AI power demand puts extra-high-voltage and HVDC in a structural growth phase, with operating profit rising clearly at a profit inflection. The main caution is that the interest burden from a 218% debt ratio prevents operating profit from carrying fully through to net profit.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 218.1%).
- 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 3.5%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Hoban Construction 41.95% (corporate)
Controlling bloc incl. related parties 41.97%
With the controlling bloc holding 42%, the ownership structure is stable.
🔎 In-depth analysis
- Taihan Cable & Solution is a company that makes 'power cables' that carry electricity.
- The main pillars of revenue are the extra-high-voltage cables that send power from power plants to cities, the submarine cables that connect electricity across the seabed, and the high-voltage direct current (HVDC) cables that reduce losses to send power over long distances.
- Added to these are the medium- and low-voltage cables used in apartments and factories and the aluminum and copper materials business.
- What has lifted recent results is the high-margin extra-high-voltage and HVDC projects; the key point is that as investment in power infrastructure has grown with the spread of AI data centers in the United States, Singapore and elsewhere, this high-margin volume has begun to be recognized as revenue.
- The recent close is ₩27,800 and the market cap is ₩5.4 trillion.
- The price sits below its 20-day line (₩34,918) and below its 60-day line (₩44,611).
- Trading below both its short- and mid-term moving averages, the trend is on the subdued side.
- The RSI (a supplementary gauge that weighs upward versus downward strength over the last 14 days on a 0-100 scale) is 30.8, a neutral level.
- The one-month change is -25.8%, the three-month change is -1.2%, and the position versus the 52-week high is -61.6%.
- Relative strength against the KOSPI is 53 (on a 1-99 scale, converting the past year's return versus the index with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 47% of all stocks by strength.
- Over the past three months it lagged the index by 28.7%.
- It is best to read the chart alongside trading volume and the dates of disclosures.
- On a 2025 basis, the P/E ratio (how many times one year's net profit the share price represents) is 64.70x, which looks high.
- But this company carries heavy debt (a debt ratio of 218%, meaning debt is 2.2 times equity), so a large part of what it earns operationally leaks out as interest expense; even when operating profit is good, final net profit is pressured.
- In fact, 2025 operating profit was ₩128.6 billion but net profit was ₩84.2 billion, and in the first quarter of 2026 operating profit was a record ₩60.4 billion yet the net result was a slight loss.
- So it is hard to conclude the stock is expensive from the P/E alone; for this company one has to look at the direction of operating profit together with the pace of balance-sheet improvement.
- The P/B (how many times net assets the share price represents) is 3.40x, actually on the lower side versus peer cable and power-equipment makers.
- The ROE (how much is earned in a year per unit of equity) is 5.3%, still low under the interest burden.
- Revenue grew at about a 16% average annual rate over five years, from roughly ₩2.0 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 is the first quarter of 2026: revenue rose +26.6% year over year while operating profit rose +122.9% (₩60.4 billion), far outpacing the revenue growth rate.
- This means the share of high-margin extra-high-voltage and HVDC projects has grown - not simple top-line growth, but a phase where the margin itself is rising.
- The order backlog at the end of the first quarter was ₩3,827.3 billion, a record high, so work already secured will be recognized as revenue in sequence.
- Going forward, operating profit is on a trajectory to rise clearly versus 2025, with high-margin extra-high-voltage, submarine and HVDC volume continuing to lift results.
- However, since net profit is governed by interest expense, it may not grow as fast as operating profit.
- The biggest issue is the ₩133.0 billion, 500kV HVDC XLPE cable turnkey contract signed with Korea Electric Power Corporation in June 2026.
- As a national core-grid project that reliably delivers power generated on the east coast to the metropolitan area, it is an order that demonstrates the competitiveness of HVDC, the company's strategic product.
- In April the company disclosed preliminary first-quarter 2026 results (operating profit of ₩60.4 billion, a record quarterly figure) and held an investor briefing (IR) around the same time.
- Also in April there was a disclosure on the exercise of conversion and warrant rights, meaning previously issued convertible bonds and bonds with warrants are being converted into shares; this helps improve the balance sheet but is also a factor that increases the share count (dilution).
- In May the company decided to acquire tangible assets (production facilities), showing its intent to expand extra-high-voltage and submarine capacity.
- The strengths are clear.
- As grid replacement and expansion worldwide overlap with AI-data-center-driven power demand, extra-high-voltage, HVDC and submarine cables are in a structural growth phase, and Taihan Cable & Solution sits in the middle of this flow with a record-high order backlog (₩3.8 trillion) and a record quarterly operating profit.
- Worth noting are the staircase-like rise in operating margin and the fact that its P/B is the lowest among peer cable and power-equipment makers.
- The point to watch is the balance sheet.
- With a 218% debt ratio, the interest burden is large, so operating profit does not carry fully through to net profit; in fact the first-quarter net result was a loss.
- In sum, it is stronger the more extra-high-voltage and HVDC orders are recognized as revenue and the more the balance sheet (interest expense) improves, and weaker if project recognition is delayed or the rate and interest burden grow.
- Even though the trailing P/E looks high, this is a stock at a profit inflection where operating profit is rising clearly, so rather than judging by the P/E on last year's net profit alone, one should look at the operating-profit trajectory together with the balance-sheet improvement.
🔎 Valuation vs peers Fairly valued
Domestic listed peers in the grid and cable ecosystem - cable and power-equipment makers exposed to high-voltage infrastructure such as extra-high-voltage, HVDC and submarine.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Gaon Cable | 74.84x | 7.95x | 10.62% |
| Iljin Electric | 28.60x | 5.05x | 17.65% |
| LS Electric | 99.12x | 13.73x | 13.85% |
The trailing 85.6x P/E looks high, but it is a value calculated on last year's net profit at the outset of a profit inflection, so it overvalues the real picture. This company's net profit is heavily pressured by interest expense stemming from high debt (a 218% debt ratio), so it is set low relative to operating profit, and the P/E therefore looks more burdensome than it is. By contrast, the P/B at 3.40x is clearly lower than Gaon Cable (10.3x), Iljin Electric (6.8x) and LS Electric (19.1x), so on net assets it sits at the most discounted position among peers. Given that operating profit is on a trajectory to rise clearly in 2026 from ₩128.6 billion in 2025 (already ₩60.4 billion in the first quarter), it is hard to call it excessively expensive relative to growth. That said, given the slow pace of conversion into net profit due to the interest burden, and the results volatility tied to project-recognition timing, it is viewed within a fair range rather than concluded to be clearly undervalued.
Price history Close · MA20 · MA60
The latest close is ₩27,800 and the market capitalization is ₩5.4 trillion. The price sits below its 20-day moving average (₩34,918) and below its 60-day moving average (₩44,611). 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 30.8, a neutral level. The one-month change is -25.8%, the three-month change is -1.2%, and the position relative to the 52-week high is -61.6%. 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 28.7%. 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 -28.70% / 6M -33.90% / 12M -25.79%
Key metrics vs whole-market median
Valuation
The P/E of 64.70x is above the whole-market median (13.81x). The P/B of 3.40x is above the whole-market median (1.15x). 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)
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%, in line with the whole-market average (5.0%). The operating margin is 3.5%. The debt ratio is 218.1%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.9B | $2.2B | $2.4B | +10.47% ↓ slower |
| Operating profit | $52.9M | $76.3M | $85.2M | +11.67% ↓ slower |
| Net profit | $46.8M | $46.7M | $55.8M | +19.55% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.3B | $1.6B | $1.9B | $2.2B | $2.4B |
| Operating profit | $26.2M | $31.9M | $52.9M | $76.3M | $85.2M |
| Net profit | $18.5M | $13.6M | $46.8M | $46.7M | $55.8M |
| 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 Q1 2026 · vs year-ago
Technical indicators
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 500kV HVDC XLPE cable turnkey (supply and construction) single sale/supply contract with Korea Electric Power Corporation (about ₩133.0 billion; east coast-to-metropolitan national grid)Demonstrates the competitiveness of the strategic product HVDC. The larger order backlog strengthens mid-term revenue and profit visibility (mid-term positive). Source
- 2026-04-29EarningsPreliminary consolidated first-quarter 2026 results disclosure - revenue ₩1,083.4 billion (+26.6%), operating profit ₩60.4 billion (+122.9%, a record quarterly figure)Confirms a step-up in profitability from recognizing high-margin extra-high-voltage and HVDC volume (short- and mid-term positive). However, the net result was a slight loss due to non-operating factors such as interest. Source
- 2026-05-13FilingDecision to acquire tangible assets - expansion of production facilities (capacity) such as extra-high-voltage and submarineIntent to expand production capacity for high-margin products. A mid-term growth foundation, though the investment burden and whether it is debt-funded are factors to watch (mid-term neutral to positive). Source
- 2026-04-21FilingExercise of conversion, warrant and exchange rights - conversion of previously issued convertible bonds and bonds with warrants into sharesPositive for balance-sheet improvement through debt reduction, but a factor that increases the share count (dilution) (mid-term mixed). Source
- 2026-04-20IRAnnouncement of an investor briefing (IR)Strengthens communication on results and strategy (neutral). Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| First-quarter 2026 operating profit | ₩60.4 billion | ₩60.4 billion | Confirmed | link |
| First-quarter 2026 revenue | 1₩83.4 billion(+26.6%) | 1₩83.4 billion | Confirmed | link |
| Scale of the June KEPCO supply contract | approx. | approx. ₩133.0 billion, 500kV HVDC XLPE | Confirmed | link |
| 2026 annual operating profit (outlook) | self-estimate approx. 1,900~₩200.0 billion(YoY approx. +50%) | — | Unverified | link |
Recent filings
- 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.