Daewon Cable (006340) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Daewon Cable is a wire and cable maker founded in 1964. Power cables that carry electricity and insulated wiring for buildings make up about 86% of revenue, while the remaining roughly 14% comes from an automotive aluminum-wheel business. Because copper is the main raw material, product selling prices tend to rise when the international copper price climbs. The May quarterly report confirmed a sharp jump in first-quarter profit, and with no large order announcements or separate IR events, the results themselves acted as the biggest event of the quarter for this small-cap stock. What stands out lately is that the demand backdrop for cable is favorable, helped by grid investment and data-center power needs, and the balance sheet is stable in a net-cash position. On the other hand, much of the profit surge came from selling-price increases tied to higher copper prices, and with an operating margin as thin as 1.5% to begin with, earnings momentum could soften if copper prices turn down.
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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 ratio, current ratio and interest burden all look healthy.
- Revenue rose 13.0% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 25.1% higher than a year earlier.
- ROE is 8.6% (controlling-interest basis). It is above the sector average.
- Operating margin is 2.4%.
- 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 Gapdo Mulsan 21.89% (corporate)
Controlling bloc incl. related parties 30.32%
With the controlling bloc holding 30%, the ownership structure is stable.
🔎 In-depth analysis Reading
Daewon Cable is a wire and cable maker founded in 1964. It makes and sells cable that carries electricity. About 86% of revenue comes from the cable segment, led by thick power cables that transmit electricity and insulated wiring used in building wiring. The remaining roughly 14% is an automotive aluminum-wheel business. The main raw material for cable is copper (CU-ROD), so when the international copper price rises, product selling prices tend to rise with it. In short, the company's revenue and profit are heavily driven by two things: how much cable it sells on the back of grid investment, and the level of copper prices.
The latest close is ₩14,400 and the market capitalization is ₩1.1 trillion. The price sits above its 20-day moving average (₩12,585) and above its 60-day moving average (₩12,193). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 56.6, a neutral level. The one-month change is +28.0%, the three-month change is -20.2%, and the position relative to the 52-week high is -20.2%. Relative strength versus the KOSPI is 92 (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 93% of all stocks. Over the past three months it lagged the index by 1.8%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On last year's (2025) results, the P/E ratio (how many times one year of earnings the price represents) looks very high at 86.06x. P/B (how many times book equity the price represents) is 8.39x, and ROE (how much is earned in a year on equity) was 6.8%. Last year's operating margin was a thin 1.5%. The cable business carries a large raw-material cost share, so margins are inherently not thick. Net debt (total borrowings minus cash) is negative ₩12.9 billion, meaning cash exceeds debt in a net-cash position. The debt-to-equity ratio of 168% looks high, but a large part of it is trade-payable-type debt tied to raw-material purchases, which differs in nature from interest-bearing burden. Here is the most important point: the P/E of about 107x is calculated on last year's earnings. As shown below, this year's earnings have surged, so this multiple looks far more inflated than reality.
Revenue has grown steadily, rising three years in a row: ₩515.4 billion in 2023, ₩552.8 billion in 2024, and ₩624.5 billion in 2025, with the pace of growth accelerating. The real change shows up in earnings. First-quarter 2026 revenue was ₩189.2 billion, up 25% from a year earlier. Over the same period operating profit surged 76% to ₩14.7 billion. That first-quarter operating profit of ₩14.7 billion already exceeds the full-year 2025 operating profit of ₩9.4 billion. Net profit also reached ₩11.2 billion in the first quarter alone, surpassing the full-year 2025 figure of ₩8.8 billion. With the cable segment running at 97% utilization, essentially full, copper-price increases have flowed into selling prices and lifted profit in a step change. International copper prices are expected to hold at a high level this year, so this trend is unlikely to reverse easily. Even if last year's P/E looks high, the picture changes completely on this year's earnings.
Recent disclosures center on regular reporting and shareholdings. The May quarterly report confirmed the surge in first-quarter profit. In March the 2025 annual report and audit report were filed and the regular shareholders' meeting was held. From March through June there were several filings on holdings by major shareholders and executives. There were no large order announcements or separate IR events during this period. Given its small-cap nature, the results themselves are the biggest event, and this first-quarter performance played that role.
The strengths are clear. This year's earnings surged so sharply that a single quarter has already surpassed all of last year. The demand backdrop for cable is favorable, supported by grid investment and data-center power needs. Being in a net-cash position, the balance sheet is also stable. On the other side, there are cautions. Much of the profit surge came from selling-price increases tied to higher copper prices. If copper prices turn down, the margin improvement could shrink as well. Because the operating margin is inherently thin at 1.5%, earnings are sensitive to swings in raw-material prices. In sum, the stock is strong when copper prices stay high and cable demand continues, and its earnings momentum can weaken in a phase where copper prices fall quickly.
🔎 Valuation vs peers Fairly valued
Compared against domestic wire and power-cable makers whose business substance (centered on power cable and insulated wiring) is closest.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Taihan Cable & Solution | 63.77x | 3.39x | 5.26% |
| Gaon Cable | 49.92x | 9.22x | 11.12% |
| LS Eco Energy | 33.16x | 6.03x | 18.82% |
Looking only at last year's P/E of 107x, the stock appears very expensive. But that figure is calculated on last year's thin earnings. Because first-quarter 2026 profit already surpassed the full year of 2025, recalculating on this year's earnings brings the multiple down sharply. For the same reason, Taihan Cable and Gaon Cable also show last-year P/E ratios of 78-90x, all high together, meaning the whole industry is in a phase where earnings have just turned up. On this year's earnings, Daewon Cable's multiple narrows to a level that is not particularly expensive versus peers. That said, much of the profit leans on higher international copper prices. So even on a forward basis, the balanced read is not a clear undervaluation but rather 'fairly valued once the last-year optical distortion is stripped out.'
Price history Close · MA20 · MA60
The latest close is ₩14,400 and the market capitalization is ₩1.1 trillion. The price sits above its 20-day moving average (₩12,585) and above its 60-day moving average (₩12,193). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 56.6, a neutral level. The one-month change is +28.0%, the three-month change is -20.2%, and the position relative to the 52-week high is -20.2%. Relative strength versus the KOSPI is 92 (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 93% of all stocks. Over the past three months it lagged the index by 1.8%. 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 -1.78% / 6M +222.97% / 12M +157.55%
Key metrics Computed vs whole-market median
Valuation
The P/E of 128.69x is above the whole-market median (12.97x). The P/B of 8.39x 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 8.6%, above the whole-market average (3.0%). The operating margin is 2.4%. The debt ratio is 150.1%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $362.1M | $388.3M | $438.7M | +12.98% ↑ faster |
| Operating profit | $9.2M | $10.1M | $6.6M | -34.78% ↓ slower |
| Net profit | $6.8M | $4.8M | $6.2M | +29.17% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $333.7M | $395.1M | $362.1M | $388.3M | $438.7M |
| Operating profit | $1.6M | $945,630 | $9.2M | $10.1M | $6.6M |
| Net profit | $916,333 | $951,236 | $6.8M | $4.8M | $6.2M |
| Revenue CAGR | 4-yr avg 7.08% | ||||
Revenue rose 13.0% year over year (2023 ₩515.4 billion → 2024 ₩552.8 billion → 2025 ₩624.5 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit fell 34.8% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 7.1%. The two-year revenue CAGR is 10.1%. In the most recent quarter (Q1 2026), revenue was 25.1% 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 13.0% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-08EarningsFirst-quarter 2026 quarterly report. Revenue of ₩189.2 billion (+25.1% YoY), operating profit of ₩14.7 billion (+76.2%), and net profit of ₩11.2 billion. First-quarter profit already exceeds all of last year's annual profit.Positive for both the short and mid term. A key basis for stripping away the optical distortion of the high P/E based on last year. Source
- 2026-03-17Filing2025 annual report filed. Full-year revenue of ₩624.5 billion (+13.0%) and net profit of ₩8.8 billion (+29.2%). Revenue up three years in a row.Mid-term positive. Confirms a broader revenue base following the addition of the aluminum-wheel segment. Source
- 2026-03-26FilingRegular shareholders' meeting held. Routine agenda items processed, including approval of financial statements.Neutral. Confirms normal governance operations. Source
- 2026-06-02FilingAbbreviated large-holding report filed. Notification of a change in a 5%-plus major shareholder's stake.Neutral. For monitoring ownership structure and supply-demand shifts. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| First-quarter 2026 revenue / operating profit growth rate | revenue +25.1%, operating profit +76.2% | revenue +25.1%, operating profit +76.2% | Confirmed | link |
| Business mix (cable vs aluminum wheel) | approx. 86%, approx. 14% | 1,634, 259 | Confirmed | link |
| 2025 annual revenue | 6,245(+13.0%) | 6,245 | Confirmed | link |
| 2026 net profit estimate (forward) | approx. 320(self-estimate) | — | Unverified | — |
Recent filings Source
- 2026-06-02OwnershipOwnership-change filing
- 2026-05-27Corporate governance report
- 2026-05-11OwnershipOwnership-change filing
- 2026-05-08PeriodicQuarterly report
- 2026-03-31PeriodicAnnual business report (amended)
- 2026-03-26Shareholders' meeting notice
- 2026-03-26Disclosure
- 2026-03-17PeriodicAnnual business report
- 2026-03-17Audit report
- 2026-03-04OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-04OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-04OwnershipLargest-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.