Fact Summary
Gaon Cable posted consolidated H1 2026 (cumulative) revenue of KRW 1.633 trillion (+27.3% YoY), operating profit of KRW 64.0 billion (+41.8%), and net income of KRW 42.5 billion (+42.4%), marking a record H1 performance (filing number 20260814000919). Its largest shareholder is LS Cable & System, which together with related parties held an 81.71% stake (24,332,562 shares) as of 2026-07-21 (DART Report on Status of Large Holdings, filing number 20260721001316). On 2026-07-23, new shares from a bonus issue allotting 0.8 shares per share were listed, increasing total shares outstanding from 16,543,115 to 29,777,607. The closing price as of the analysis reference date (2026-08-19) was KRW 157,800.
Price-Change Context Note
The ex-rights adjustment following the 2026-07-23 listing of bonus-issue shares lowered the absolute price level, making it difficult to directly compare pre-bonus-issue prices (around KRW 390,000 in June 2026) with post-bonus-issue prices (around KRW 150,000-170,000 in August 2026). On the reference date of 2026-08-18, the share price was formed amid a broad market risk-off environment, with the KOSPI (-1.55%) and KOSDAQ (-3.52%) both falling sharply.
Business Overview
Gaon Cable is a cable manufacturer founded in 1947, operating four business segments: power cables, communication cables, special cables, and wood drums (wooden cable drums). Its largest shareholder is LS Cable & System, making it an affiliate of the LS Group under the holding company chain LS Corp. - LS Cable & System - Gaon Cable. The latest revenue breakdown by business segment is not available.
In October 2023, Gaon Cable brought special-cable manufacturer G&P Co., Ltd. under its umbrella as a subsidiary, and in November 2024 it acquired a 100% stake in LS Cable & System USA (LSCUS), a distribution-cable production entity based in Tarboro, North Carolina, USA, via an in-kind capital contribution. Long-term busduct supply contracts with U.S. Big Tech companies have been reported to total more than KRW 4 trillion cumulatively (media reports, June 2026).
5-Year Financial Trend (Consolidated Basis)
| Period | Operating Margin | Net Margin | Debt Ratio | ROE (Simple) |
|---|---|---|---|---|
| 2021 | 1.55% | 0.55% | 145.78% | 2.18% |
| 2022 | 2.01% | 0.74% | 148.24% | 3.45% |
| 2023 | 2.92% | 1.19% | 142.23% | 5.41% |
| 2024 | 2.61% | 1.47% | 129.86% | 5.59% |
| 2025 | 3.11% | 2.02% | 184.81% | 10.62% |
| H1 2026 (cumulative) | 3.92% | 2.60% | 213.28% | 8.02% (not annualized) |
The debt ratio trended downward and stabilized through 2024 before turning upward from 2025. Increased borrowing associated with U.S. business expansion has been cited as the background factor (credit rating agency reports, June 2026). Source: confirmed financial data (Annual Reports, Semiannual Reports; filing numbers as referenced in the table above, A)
Supply-Demand Trends (Third-Party Source Basis, Not Cross-Checked Against KRX Raw Data)
The figures below are estimates from third-party aggregation sites that have not been directly cross-checked against official KRX raw data. They are provided for reference only, not as confirmed facts.
2026-07-20 to 08-18 (sum of 21 trading days, estimate E). The foreign ownership ratio is estimated to have declined slightly from about 1.53% in June 2026 to about 1.32% as of the 2026-08-19 lookup (not cross-checked). The short-selling balance as of 2026-08-13 is estimated at about 0.82% of shares outstanding (243,638 shares, estimate).
Governance and Capital Structure
As of 2026-07-21 (Report on Status of Large Holdings) · Minority shareholder ratio is a reference figure from a secondary source (WiseReport)
| Date | Event |
|---|---|
| 2024-11-19 | Acquired 100% stake in LSCUS (in-kind contribution, wholly owned subsidiary) |
| 2025-02-05 | LS Cable & System's stake expanded to 80.71% (share acquisition and third-party allotment capital increase) |
| 2026-06-16 | Board resolves bonus issue (0.8 shares per share) |
| 2026-07-01 | Record date for new share allotment |
| 2026-07-21 | Disclosure of large holding: LS Cable & System and related parties hold 81.71% (24,332,562 shares) |
| 2026-07-23 | Bonus issue new shares listed (total shares outstanding increased to 29,777,607) |
The structure is such that holding company LS Corp. holds a 92.52% stake in LS Cable & System, which in turn holds an 81.71% stake in Gaon Cable (cross-checked against secondary sources). The exact ownership percentages of Gaon Cable's subsidiaries (Mobo, EZ Wire, DKC, G&P Wood, G&P, Sejong Cable, and others) are not available. The full composition of the board of directors, including the list of outside directors and auditors, is also not available.
Peer Comparison
The domestic cable market is characterized by competition among the three major players — LS Cable & System, Taihan Cable & Solution, and Gaon Cable (combined market share of roughly 70-80%, reference figure) — followed by Iljin Electric, Daewon Electric Wire, and others. As an affiliate of its largest shareholder LS Cable & System, Gaon Cable's relationship is closer to intra-group business positioning than to fully independent competition. The exact figure for Gaon Cable's standalone market share is not available.
Gaon Cable's PER is 50.79x (based on 2025 EPS) when calculated using 16,543,115 shares outstanding (as of 2026-06-30), and expands to approximately 91.4x when calculated using the share count reflecting the 2026-07-23 bonus issue (29,777,607 shares) — both calculations are presented side by side.
Valuation (Factual Multiples)
When recalculated using the share count reflecting the 2026-07-23 bonus issue (29,777,607 shares), EPS and BPS shrink to about 55.6% of the figures above, and PER and PBR expand proportionally. EV/EBITDA and dividend yield could not be calculated due to unavailable confirmed data on depreciation, net debt, and dividends.
Macro Environment
| Factor | Value as of Reference Date | Impact Pathway (Factual) |
|---|---|---|
| Bank of Korea Base Rate | 2.75% (decided 2026-07-16) | Upward pressure on short-term borrowing costs Negative |
| KRW/USD Exchange Rate | KRW 1,411.8 (2026-08-18, 10-month low) | Reduces KRW-converted value of direct exports to the U.S.; LSCUS local production provides a natural hedge Neutral to Negative |
| Copper (LME) | $6.47/lb (2026-08-18, +46.34% YoY) | Selling-price linkage expands nominal revenue but increases working-capital burden Neutral |
| KOSPI/KOSDAQ | 6,869.83 (-1.55%) / 834.20 (-3.52%) (2026-08-18) | Broad market risk-off, increased volatility Negative |
Risk Factors
Inventory assets rose to KRW 284.2 billion at end-2025, up +59.4% from end-2024 (KRW 178.3 billion), with a declining inventory turnover trend (media report, 2026-04-15)
The debt ratio rose from 129.86% in 2024 to 213.28% in H1 2026; increased borrowing tied to U.S. business expansion has been cited as the background factor (confirmed financial data, credit rating agency reports)
As of Q1 2026, short-term borrowings of KRW 572.4 billion exceeded cash and cash equivalents of KRW 190.9 billion (based on media reports; reference information at an unconfirmed level)
Potential for increased inventory valuation and working-capital burden during periods of rising copper (electrolytic copper) prices (characteristic of the cable industry)
Credit rating figures and outlook, the exact pass-through rate of copper-price-linked selling price contracts, and the maturity structure of interest-bearing debt for H1 2026 are not available.
Recent News Timeline
| Date | Content |
|---|---|
| 2026-07-20 | Preliminary H1 2026 (consolidated) earnings disclosed — record H1 performance |
| 2026-07-23 | Bonus issue new shares listed (total shares outstanding increased) |
| 2026-07-28 | Announced first supply of distribution cables (approx. KRW 50 billion) for a U.S. Big Tech power plant construction project |
| 2026-08-06 | Signed a distribution cable supply contract worth approximately KRW 60 billion with Singapore's Land Transport Authority for an urban rail power grid project |
| 2026-08-13~14 | Share price closed firm in the KRW 167,000-167,100 range (market brief) |
No confirmed Gaon Cable-specific news is available for 2026-08-18 (the reference date itself). Brokerage price-outlook materials cited in the media during this period are excluded from this report in accordance with compliance principles.
Theme Relevance
Fact Highlights
This is not investment advice. FomoLog provides factual summaries and post-hoc price-change context only. Investment decisions and their outcomes are solely the responsibility of the investor.
Generated by FomoLog Agent · Data sources: KRX, NASDAQ, DART, SEC EDGAR