Daehan Optical Communication (010170) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
Daehan Optical Communication is the only vertically integrated maker in Korea that produces everything from the preform (the raw glass rod), through optical fiber, to finished optical cable, all under one roof. Its revenue centers on optical cable for telecom carriers and backbone networks, plus the fast-growing category of ultra-high-density cable for data centers. The company confirmed a full-year loss for 2025 in its March 2026 annual report, and its May quarterly report showed rising Q1 revenue and a narrowing loss, so the turn in the numbers is now visible. The point to watch is that, with AI data centers driving a shortage of optical fiber, this vertical integration lets the company absorb demand, and the Q1 loss shrank by nearly half; but it is still a loss-making company with a 328.6% debt ratio and a current ratio below 100%, and the share price already embeds a good deal of the expected recovery over the next few years, leaving P/B and P/S very high.
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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.
That said, earnings are swinging with the industry cycle right now, so this metric is best viewed alongside asset value and the demand backdrop.
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
- The most recent full-year net result was a loss.
- Revenue fell 8.7% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 34.9% higher than a year earlier.
- ROE is -42.0% (controlling-interest basis). It is below the sector average.
- Operating margin is -15.3%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder TFO Industry 8.14% (corporate)
Controlling bloc incl. related parties 18.1%
With the controlling bloc holding 18%, control is maintained but the free float is relatively large.
🔎 In-depth analysis Reading
Daehan Optical Communication makes optical fiber and optical cable. It is the only vertically integrated maker in Korea that produces everything from the preform (the raw glass material for fiber), through optical fiber, to finished optical cable, all within one company. Put simply, it draws a glass rod into hair-thin fiber and bundles that fiber into finished telecom cable, handling the entire process in-house. Its revenue centers on optical cable used by telecom carriers and in backbone networks, alongside the fast-growing category of ultra-high-density cable for data centers. Because it produces even the glass preform itself, it can supply volume more reliably than others at a time when optical fiber is in short supply worldwide.
The latest close is ₩11,070 and the market capitalization is ₩1.7 trillion. The price sits above its 20-day moving average (₩10,063) and below its 60-day moving average (₩15,746). 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 49.9, a neutral level. The one-month change is +1.0%, the three-month change is -39.4%, and the position relative to the 52-week high is -62.0%. Relative strength versus the KOSDAQ is 96 (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 97% of all stocks. Over the past three months it lagged the index by 24.0%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The first thing to understand is that this is currently a loss-making company. The 2025 operating loss was ₩21.4 billion and the net loss was ₩28.0 billion. ROE (how much is earned in a year on equity) was -42%, and the operating margin (operating profit as a share of revenue) was also negative at -15.3%. The P/E ratio (how many years of profit the price represents) cannot be calculated because earnings are negative; instead, P/B (the price relative to book equity) is very high at 27.9x, and P/S (the price relative to revenue) is 13.3x. The financial structure is also a burden: the debt ratio (debt against equity) is 328.6%, and the current ratio (assets that can be turned into cash immediately against debts due within a year) is 76.5%, below 100%. Net debt (total borrowings minus cash) is about ₩88.3 billion. The FCF yield (actual cash generated relative to market cap) is -0.7%, still a stage of spending cash rather than earning it. That said, these figures should be read as the picture from last year, when the company was passing through the bottom of its losses.
The results show clear signs of turning up after passing the bottom. Annual revenue was on a downslope, from a peak of ₩190.1 billion in 2022 to ₩139.4 billion in 2025. But in Q1 2026 revenue of ₩34.2 billion, up 34.9% from the same period a year earlier, changed direction. In the same quarter the operating loss narrowed by 42.8% and the net loss by 47.8%. Rising revenue with the loss cut nearly in half is an early sign of recovery. Behind this is a worldwide optical-fiber shortage triggered by the buildout of AI data centers. As a single data center now uses dozens of times more fiber than earlier servers, fiber prices and order lead times are climbing together, a favorable environment for a company that makes its own raw material from scratch. This year's earnings are seen on a recovery track that rides this shortage, improving quarter by quarter, with a return to full-year profit possible; still, the size of that profit may be modest in the first year of recovery.
Recent disclosures have centered on results and governance. In March, the 2025 annual report confirmed the full-year loss and the regular shareholders' meeting was held. The May quarterly report showed rising Q1 revenue and a narrowing loss, making the turn in the numbers visible. There were also disclosures of changes in major shareholders' holdings in March and April. Rather than one-off events like large orders or dividends, the single most important development at this stage is the fact that quarterly results have turned up from the bottom.
This is a stock with clearly strong and weak conditions. The strong case is plain: the optical-fiber shortage driven by AI data center expansion continues, and vertical integration from raw material up absorbs that demand. In Q1, revenue rose and the loss narrowed by nearly half, so the recovery has begun. The weak case is equally plain: it is still a loss-making company, with a 328.6% debt ratio and a current ratio below 100%. Above all, the share price already embeds not just this year's earnings but a good deal of the expected recovery over the next few years. That is why P/B and P/S are very high, and even assuming a return to profit, the price-to-earnings multiple against this year's earnings is still on the high side. In short, how quickly the fiber shortage feeds through into actual results decides this company's direction. If the recovery is as fast as hoped, it is strong; if it is delayed or the financial burden gets in the way, the high valuation can turn into a drag.
🔎 Valuation vs peers Overvalued
Compared on the business substance of optical components and cable for AI data centers and telecom networks, using an optical transceiver maker (Oe Solution) and a wire/power-cable maker (LS Eco Energy) as reference peers.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| OE Solutions | 0.00x | 3.67x | -42.07% |
| LS Eco Energy | 33.16x | 6.03x | 18.82% |
With earnings negative, no P/E comparison is possible; on a P/B basis, 27.9x is far above the optical-component peer (Oe Solution at 4.5x) and the cable peer (LS Eco Energy at 8.1x). The high trailing figures stem from earnings sitting at their bottom, so that alone is hard to treat as a burden. Even assuming a return to profit this year, however, the price-to-earnings multiple against first-year recovery earnings is still on the high side. In other words, this price embeds a good deal of recovery not just for this year but for several years ahead. The optical-fiber shortage and the competitive edge from vertical integration are clear strengths, but the current valuation is judged to be pricing that expectation in ahead of time.
Price history Close · MA20 · MA60
The latest close is ₩11,070 and the market capitalization is ₩1.7 trillion. The price sits above its 20-day moving average (₩10,063) and below its 60-day moving average (₩15,746). 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 49.9, a neutral level. The one-month change is +1.0%, the three-month change is -39.4%, and the position relative to the 52-week high is -62.0%. Relative strength versus the KOSDAQ is 96 (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 97% of all stocks. Over the past three months it lagged the index by 24.0%. 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 -24.04% / 6M +374.71% / 12M +1089.46%
Key metrics Computed vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 14.84x is above the sector median (1.21x).
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 -42.0%, below the sector average (1.0%). The operating margin is -15.3%. The debt ratio is 116.7%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $126.6M | $107.3M | $98.0M | -8.69% ↑ faster |
| Operating profit | -$16.3M | -$20.9M | -$15.0M | — |
| Net profit | -$20.7M | -$39.4M | -$19.7M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $110.0M | $133.6M | $126.6M | $107.3M | $98.0M |
| Operating profit | -$19.3M | $2.4M | -$16.3M | -$20.9M | -$15.0M |
| Net profit | -$34.5M | -$2.2M | -$20.7M | -$39.4M | -$19.7M |
| Revenue CAGR | 4-yr avg -2.86% | ||||
Revenue fell 8.7% year over year (2023 ₩180.3 billion → 2024 ₩152.7 billion → 2025 ₩139.4 billion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 5 years on record, revenue compound annual growth (CAGR) is -2.9%. The two-year revenue CAGR is -12.0%. In the most recent quarter (Q1 2026), revenue was 34.9% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- —
Points to watch
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 8.7% year over year (3-year trend: falling).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-15EarningsQ1 2026 report filed. Revenue of ₩34.2 billion, up 34.9% year on year, with both the operating loss and net loss narrowing in the 40% range, marking a turn off the bottom.The narrowing loss and revenue rebound are confirmed in the numbers, suggesting that the optical-fiber shortage is beginning to show up in results (medium-term positive). Source
- 2026-03-19Earnings2025 annual report filed. Full-year revenue of ₩139.4 billion (down 8.7% year on year), an operating loss of ₩21.4 billion and a net loss of ₩28.0 billion, confirming continued losses.A reference point confirming the prior-year loss bottom. It becomes the starting line for the inflection when set against the subsequent quarterly recovery (short-term neutral). Source
- 2026-03-27FilingDisclosure of the regular shareholders' meeting outcome and governance items such as the appointment of outside directors.A routine governance procedure with limited direct bearing on the earnings direction (neutral). Source
- 2026-04-01FilingDisclosure of major shareholder stake changes, including a simplified large-holding report.Stake changes can affect supply and demand but are unrelated to business results (neutral). Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-05-22OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-22OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly report
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-27Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit report
- 2026-03-16OwnershipOwnership-change filing
- 2026-03-12Disclosure
- 2026-03-12Shareholders' meeting notice
- 2026-03-12Shareholders' meeting notice
📖 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.