Gaon Cable Maintains Strong Stock Performance on AI Power Infrastructure Boom and Bonus Issue

"0.8 Bonus Shares per Share" Announcement Sends Stock to Upper Limit
U.S. Subsidiary LSCUS Signs Trillion-Won Long-Term Deals with Big Tech
Securities Industry: "AI Growth Story... Bonus Issue Acts as Catalyst for Revaluation"

Gaon Cable continues to perform strongly in the stock market, as the global surge in artificial intelligence (AI) drives up demand for power infrastructure and the company benefits from a major favorable event: a bonus issue.

According to the Korea Exchange on June 26, Gaon Cable closed at 298,500 won on the previous day in the KOSPI market. This represents an approximately 18% increase compared to mid-month.

This upward trend is largely attributed to the bonus issue. On June 16, Gaon Cable announced in a public disclosure that it would issue 0.8 bonus shares per common share. The stock price, which had been hovering in the mid-200,000 won range prior to the announcement, soared to the upper price limit on the next trading day, June 17.

A bonus issue is considered a representative positive event in the stock market. It involves allocating additional shares to existing shareholders by using retained earnings or capital surplus, thereby lowering entry barriers for investors. As the number of shares increases, the price per share decreases, reducing the trading burden for investors and activating trading volume.

A bonus issue is also interpreted as a signal of a company's financial soundness, since sufficient retained earnings or capital surplus are required to carry one out. In particular, when a growing company announces a bonus issue, it tends to draw concentrated investor attention.

LSCUS, the American production subsidiary of Gaon Cable. Gaon Cable

The market is now focusing on the growth of Gaon Cable's AI power infrastructure business in North America following the bonus issue, evaluating this as the momentum driving the stock price higher. On the same day as the bonus issue announcement, Gaon Cable revealed plans for a large-scale capital investment of 50 million dollars (approximately 76 billion won) in its U.S. manufacturing subsidiary, LSCUS. LSCUS is a U.S.-based subsidiary supplying bus ducts and power cables for AI data centers, and has recently signed a series of long-term supply contracts worth trillions of won with global big-tech companies. To meet this demand, the company plans to build two new production lines. According to Gaon Cable, most of the additional production capacity being added in the U.S. is already fully booked.

A securities industry official commented, "A bonus issue itself does not directly increase corporate value, but it does help broaden the investor base and improve liquidity. Especially for companies like Gaon Cable, which have a growth story in AI data center power infrastructure, a bonus issue can serve as a catalyst for attracting market interest."

This content was produced with the assistance of AI translation services.