"From Manufacturing to Construction... Taihan Cable Accelerates Growth, Rated Buy" [Click e-Stock]

Operating Profit Expected to Surge by 68% This Year

Qualitative Growth Driven by Expansion of High-Value Product Lines

"Acquisition of Scandi Connector... Maximizing Order-Winning Capabilities"

Taihan Cable is strengthening its "full turnkey" capabilities, performing all processes from product manufacturing to construction in a single flow, and is emerging as a key player in the global power infrastructure market, according to analysis published on July 16, 2026.

According to Mirae Asset Securities, analyst Kim Taehyung stated the previous day, "Taihan Cable's high proportion of ultra-high voltage and submarine cable business, along with its ability to secure turnkey contracts using its own cable-laying vessel, justifies an increase in valuation," and opened coverage with a "Buy" investment opinion and a target share price of 35,000 won.

"Expansion of High-Value Submarine Cable Lineup with Dangjin Plant No.2"

Taihan Cable is securing growth drivers for the mid-to-long term by expanding its lineup of high-value products. The company is currently building its second submarine cable plant in Dangjin, Chungcheongnam-do, with completion targeted for the fourth quarter of next year.

Analyst Kim explained, "This new plant will be capable of manufacturing ultra-high voltage external cables rated at 400 kV and above, as well as HVDC (high-voltage direct current) submarine cables. In the past, Taihan's product lineup focused mainly on internal network cables, but after the plant is operational, its supply scope will broaden to include not only internal network cables connecting turbines but also external network cables transmitting power to land substations."

He added, "Once the expansion is complete, sales from high-value ultra-high voltage cables and HVDC cable products alone are expected to increase by more than 1 trillion won. Considering that existing sales have been concentrated in low-margin material segments, a shift toward high-value-added products is likely to have a significant qualitative impact on margins."

Securing Own Cable-Laying Vessel Boosts Competitive Advantage in Construction

Taihan Cable's turnkey construction capabilities are also being strengthened. In May, the company decided to invest 115.4 billion won to acquire the Scandi Connector, a submarine cable-laying vessel.

Kim noted, "By acquiring the cable-laying vessel, Taihan Cable will offer a full turnkey solution covering everything from cable production to installation. From the clients' perspective, a single company managing both manufacturing and construction enhances process efficiency and project stability."

He further said, "The Scandi Connector is designed for shallow waters with fast tidal currents, such as the west coast of Korea. Given that competing companies are only now building new cable-laying vessels, which will not be delivered until the first half of 2028, Taihan's fleet gives it a competitive edge for winning offshore wind power projects in Korea in the coming years."

Strong Performance Visibility Amid Global Grid Replacement Demand

Mirae Asset Securities forecasts that Taihan Cable's sales this year will reach 4.0515 trillion won (up 11.4% year-on-year), with operating profit of 215.7 billion won (up 68.1% year-on-year). The company is expected to achieve an operating profit margin of 5.3%, the highest level in the past 10 years.

Kim commented, "The external growth will be driven by shipments from the first ultra-high voltage cable plant, which was completed in May last year, along with higher sales prices for materials and cable products reflecting the rise in copper prices. Additional growth factors include surging demand for replacement of aging transmission lines in the U.S. and expansion of power interconnection infrastructure in Europe."

However, he also pointed out valuation concerns. Kim added, "This year's price-earnings ratio (PER) stands at 49.1 times, over 80% higher than the global cable industry average. If new high-value projects such as the West Coast Energy Expressway and HVDC turn into actual contracts and performance forecasts are revised upward accordingly, it could help ease the current valuation pressure."

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