Fact Summary
TAIHAN Electric Wire closed at ₩28,700 on 2026-08-18, down -4.17% from the previous trading day (₩29,950), with trading volume of 1,837,891 shares. Consolidated revenue for Q2 2026 reached ₩1,198.7 billion (+30.8% YoY) and operating profit reached ₩60.8 billion (+113% YoY), both quarterly records, but on a cumulative first-half basis the company posted a net loss of -₩95.0 billion due to non-operating factors including valuation losses on convertible bond (CB)-related derivatives (semi-annual report, receipt no. 20260814003722). Over the month of August 2026, the company secured new orders totaling more than ₩510.0 billion, including the Anma offshore wind project, Singapore, and Qatar, pushing its order backlog past ₩3 trillion for the first time (₩3.25 trillion, TAIHAN taihan.com press release).
Price-Change Context Note
On 2026-08-18, the KOSPI surged intraday to the 7,200 level on news of an upgraded Korean growth outlook, then reversed sharply to close down -1.55% amid large-scale institutional profit-taking and a spike in U.S. long-term interest rates; cable and power-equipment theme stocks have historically shown relatively large swings during periods of sharp index volatility (2026-04-17 -6.65%, 05-07 -7.37%, 05-12 -4.68%). Over the same period (2026-08-04 to 08-18, 11 trading days), foreign investors recorded net selling for 9 consecutive trading days, with the volume absorbed by retail and institutional investors (web research estimate, not cross-checked against official KRX data). No company-specific disclosure or negative news explaining the 2026-08-18 decline for TAIHAN Electric Wire was identified within the scope of this research.
5-Year Financial Trend
| Period | Revenue (₩100M) | Operating Profit (₩100M) | Net Income (₩100M) | Operating Margin |
|---|---|---|---|---|
| 2021 | 19,977 | 395 | 289 | 1.98% |
| 2022 | 24,505 | 482 | 218 | 1.97% |
| 2023 | 28,440 | 798 | 719 | 2.81% |
| 2024 | 32,913 | 1,152 | 742 | 3.50% |
| 2025 | 36,360 | 1,286 | 899 | 3.54% |
| H1 2026 (cumulative) | 22,820 | 1,212 | -950 | 5.31% |
The H1 2026 operating margin of 5.31% already exceeds the 2025 annual business report's full-year high (3.54%), reflecting solid core operations. However, the company posted a net loss of -₩95.0 billion due to a fair-value revaluation loss on embedded derivatives from the exercise of conversion rights on privately placed convertible bonds (CBs) on 2026-04-21 (full conversion to shares) and a valuation loss on forward currency contracts (combined approximately ₩173.3 billion, per media reports). The company stated these were non-cash accounting losses not accompanied by actual cash outflow (semi-annual report, receipt no. 20260814003722; media reports in aggregate — detailed amounts by account item not obtained).
Peer Comparison
| Company | Listing Status | 2025 Revenue (Annual) | Notes |
|---|---|---|---|
| TAIHAN Electric Wire (001440) | Listed | ₩3.636 trillion (A) | Subject of this research |
| LS Cable & System | Unlisted | approx. ₩7.5882 trillion (E) | Subsidiary of LS Holdings; estimated to be the domestic No. 1 player; securing a local submarine cable production base in the U.S. |
| Gaon Cable (006200) | Listed | approx. ₩2.5457 trillion (E) | LS Cable & System affiliate; business focus differs, centered on low-voltage and distribution |
The domestic cable industry's No. 1 player is unlisted LS Cable & System (estimated 2025 revenue of approx. ₩7.5882 trillion), roughly 2.1 times the size of TAIHAN Electric Wire (₩3.636 trillion). LS Cable & System is securing a local submarine cable production base in the U.S., whereas as of 2026-08-18 TAIHAN Electric Wire has no local production base in the U.S., leaving it directly exposed to copper tariffs on exports to the U.S. (Sisa Journal-e, 2026-08-13). 2025 results for Daewon Cable and LS Electric, and valuation metrics for Gaon Cable and Daewon Cable, were not obtained in this research.
Valuation
With H1 2026 net income turning negative due to valuation losses on CB derivatives, trailing-twelve-month (TTM) PER cannot be calculated (H1 2025 net income figures were not obtained, precluding a TTM comparison). Full-year PER may vary depending on the direction of second-half derivative revaluation gains/losses and cannot currently be estimated (not obtained). EV/EBITDA cannot be calculated due to the absence of depreciation and net debt data (not obtained).
Governance and Capital Structure
Note: Hoban Construction's stake differs by source — 39.93% (wisereport) vs. 41.95% (taihan.com IR, as of 2025-12-31) — and the National Pension Service's stake is likewise reported as both 5.74% (wisereport) and 6.21% (taihan.com); the exact basis for the discrepancy was not obtained.
| Date | Event |
|---|---|
| 2026-03-26 | Held 71st Annual General Meeting of Shareholders (approved agenda items including financial statement approval and adoption of electronic shareholder meetings) |
| 2026-03-28 | Expanded outside director board from 3 to 4 members (newly appointed Jang Kyung-sun and Jo Kook-hwan; reappointed Noh Sang-sup) |
| 2026-04-21 | Completed exercise of conversion rights on privately placed convertible bonds (CBs) (full conversion to shares) |
| 2026-05-08 | New report of substantial shareholding by Samsung Asset Management and 2 other related parties (5.11%) |
| 2026-08-14 | Filed 2026 semi-annual report (receipt no. 20260814003722) |
Since becoming the largest shareholder in 2021, Hoban Construction has maintained a stake of approximately 40-42% through late 2025 and into H1 2026. At the 2026-03-28 Annual General Meeting, the company expanded its outside director board from 3 to 4 members, including the appointment of attorney Jang Kyung-sun as TAIHAN Electric Wire's first female outside director. The full affiliate ownership tree and detailed board composition were not obtained due to access limitations on source materials.
Macro and Supply-Demand Environment
Under the copper price pass-through system, a significant portion of raw material price increases is passed on to selling prices; however, without a local U.S. production base, the company is directly exposed to the 50% tariff on copper derivative products when exporting to the U.S. (Sisa Journal-e, 2026-08-13). The recent trend of won strengthening in the KRW/USD exchange rate could put downward pressure on the won-translated value of dollar-denominated export revenue, and the currency hedge ratio was not obtained. Over the same period (2026-08-04 to 08-18), foreign investor flows showed net selling for 9 consecutive trading days (web research estimate, not cross-checked against official KRX data). The short-selling ratio showed an upward trend, from 3.54% on 08-13 to 5.57% on 08-14 to 7.37% on 08-18 (web research estimate).
Fact-Based Risk Factors
- The company posted a net loss of -₩95.0 billion in H1 2026 due to valuation losses on CB and forward currency derivatives (combined approx. ₩173.3 billion, per media reports); whether residual derivative exposure remains was not obtained.
- The 2025A PER of 62.6x is high in absolute terms, and full-year 2026 net income will depend on second-half derivative revaluation gains/losses, making the full-year PER estimate uncertain (not obtained).
- The 50% Section 232 tariff on U.S. copper derivative products remains in effect, and the absence of a local U.S. production base leaves the company directly exposed to the tariff.
- If the trend of won strengthening in the KRW/USD exchange rate continues, the won-translated value of dollar-denominated export revenue could shrink (currency hedge ratio not obtained).
- Combined revenue from major customers (KEPCO, Daewon Cable, Samdong, and Kyungshin Cable) accounts for approximately 18% of revenue, indicating dependence on large customers and projects; a ₩475.8 billion investment is underway in the Dangjin submarine cable Plant No. 2 (scheduled to begin operation in 2027).
- The debt-to-equity ratio rose again from 83.7% in 2022 to 109.6% in H1 2026 (reflecting financing associated with asset expansion).
Theme Relevance
Fact Highlights
Generated by FomoLog Agent · Data sources: Korea Exchange (KRX) · DART · Media reports (aggregated)