PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close
Quarterly revenue and operating profit have hit record highs on demand for extra-high-voltage and submarine cables, yet owners' net income has swung to a loss on convertible-bond embedded-derivative and currency-forward valuation charges.
Q2 2026 revenue of KRW 1,198.7bn and operating profit of KRW 60.8bn were quarterly records, lifting the operating margin above 5% (confirmed figures).
The same quarter showed a KRW 88.4bn net loss attributable to owners; the company attributed the KRW 173.3bn first-half derivative loss mainly to convertible-bond embedded-derivative valuation losses and currency-forward losses.
Order backlog reached KRW 4,062.9bn at end-Q2 2026, above KRW 4trn for the first time in company history, with Q2 new orders of KRW 727.2bn.
Simultaneous heavy investment in the second Dangjin submarine plant (640kV class), the Dangjin HVDC test centre and a 400kV plant in Vietnam lifted the debt-to-equity ratio from 76.6% in 2024 to 114.0% in 2025.
Operating cash flow was negative KRW 171.3bn in 2025, showing working-capital strain alongside, and separate from, rising profits.
Taihan Cable & Solution is a diversified cable maker built around extra-high-voltage underground and submarine power cables, HVDC cables, industrial (medium- and low-voltage) wire and a copper materials business, and it belongs to the Hoban Group.
Revenue rests mainly on extra-high-voltage and submarine cables plus industrial wire, with additional sales booked through overseas subsidiaries and trading arms in the Americas and Canada.
The Korea Economic Daily reported in late April 2026 that, among Q1 divisional sales, extra-high-voltage and submarine cables grew 80.2% year on year, industrial wire 17.1% and subsidiary and sales entities 37.3%.
The customer base is spread across domestic utilities including KEPCO, Singapore's power authority, North American and European grid operators, and EPC contractors for offshore wind and solar projects.
In July 2025 the company acquired Taihan Ocean Works, a submarine installation specialist, and added the 10,000-tonne cable-laying vessel Skandi Connector to its existing vessel Palos, building a turnkey chain covering design, production, transport and laying.
The 154kV submarine cable project for solar grid connection in Sinan, Jeollanam-do, won in April 2026, was the first job executed with Taihan Ocean Works and put that vertical integration into practice.
Domestically, LS Cable & System is the established first mover in submarine cables with Taihan in the challenger position, while globally the company competes with large European cable groups.
Taihan says it was the first in Korea to develop a 500kV line-commutated HVDC system and a 525kV voltage-sourced HVDC land cable system, both designated national core technologies.
Its Vietnamese unit Taihan Vina broke ground in March 2026 on Vietnam's first 400kV extra-high-voltage cable plant in the Long Thanh Industrial Park, Dong Nai.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩916.4B | ₩28.6B | 3.1% |
| 2025Q3 | ₩855B | ₩29.5B | 3.5% |
| 2025Q4 | ₩1T | ₩43.4B | 4.3% |
| 2026Q1 | ₩1.1T | ₩60.4B | 5.6% |
| 2026Q2 | ₩1.2T | ₩60.8B | 5.1% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩2.5T | ₩48.2B | ₩20.6B | 2.0% | 2.4% | 83.7% |
| 2023 | ₩2.8T | ₩79.8B | ₩70.6B | 2.8% | 7.5% | 97.1% |
| 2024 | ₩3.3T | ₩115.2B | ₩70.4B | 3.5% | 4.8% | 76.6% |
| 2025 | ₩3.6T | ₩128.6B | ₩84.2B | 3.5% | 5.3% | 114.0% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
The annual trend has been clearly upward. Revenue rose from KRW 2,450.5bn in 2022 to KRW 2,844.0bn in 2023, KRW 3,291.3bn in 2024 and KRW 3,636.0bn in 2025, while operating profit expanded from KRW 48.2bn to KRW 79.8bn, KRW 115.2bn and KRW 128.6bn.
The operating margin improved from 2.0% in 2022 to 2.8% in 2023 and 3.5% in both 2024 and 2025, with 2025 net income attributable to owners of KRW 84.2bn.
In 2026 the margin level stepped up: Q1 revenue was KRW 1,083.4bn with operating profit of KRW 60.4bn (about 5.6% margin) and Q2 revenue KRW 1,198.7bn with operating profit of KRW 60.8bn (about 5.1%), keeping revenue above the KRW 1trn mark for three straight quarters after KRW 1,009.2bn in Q4 2025.
The bottom line, however, moved the other way. Q1 2026 showed a KRW 7.4bn net loss attributable to owners and Q2 a KRW 88.4bn loss, so operating-level gains did not carry through, and Q2 2025 had already produced a KRW 24.2bn owners' net loss.
In a 30 July 2026 filing the company disclosed a KRW 173.3bn first-half derivative loss, citing convertible-bond embedded-derivative valuation losses and currency-forward losses, and stated the loss involves no actual cash outflow.
Its 153rd privately placed convertible bond was fully converted into shares after conversion rights were exercised on 21 April 2026.
Cash flow and balance-sheet structure deserve equal attention: 2025 operating cash flow was negative KRW 171.3bn, a sharp deterioration from KRW 6.8bn in 2024 and KRW 30.7bn in 2023, while the debt-to-equity ratio moved from 97.1% in 2023 and 76.6% in 2024 to 114.0% in 2025.
Meritz Securities estimated that of the KRW 18.4bn Q1 2026 beat versus consensus, roughly KRW 10bn came from metal-gain effects in the materials division (Korea Economic Daily, April 2026).
The downstream market for power cable is being pulled simultaneously by AI data-centre build-out, replacement of ageing grids and renewable grid connection.
Domestically, KEPCO set out a West Coast HVDC trunk-line plan in its 11th long-term transmission and substation plan in May 2025, and in January 2026 the government said it would bring forward completion of the core section of a West Coast energy highway, moving renewable power from the Honam region to the capital area, to 2030.
Overseas, Taiwan has announced plans for 15GW of new offshore wind between 2026 and 2035, broadening the base of submarine cable volume.
In cycle terms this looks like the middle of an order-expansion phase, supported by Taihan's backlog rising from KRW 1,065.5bn in 2021 to KRW 3,827.3bn in Q1 2026 and KRW 4,062.9bn in Q2. That said, extra-high-voltage and submarine cable is a high-barrier market where track record largely decides competitiveness.
LS Cable & System has accumulated submarine experience since the late 2000s as the domestic first mover, with Taihan as the challenger, so the experience gap can weigh in global tenders.
On inputs, copper price swings feed directly into materials-division earnings, generating inventory gains on the way up and the reverse on the way down.
Because submarine projects increasingly require transport and laying capability as well as manufacturing, a gap is opening between players that own cable-laying vessels and installation entities and those that do not.
On confirmed facts alone, the base for future results is the backlog and the capacity timetable.
Q2 2026 new orders were KRW 727.2bn and end-Q2 backlog KRW 4,062.9bn, above KRW 4trn for the first time, and at an investor briefing the same day the company highlighted its award on stage EP2 of the 500kV HVDC East Coast-East Seoul project. That project was a KRW 146.3bn turnkey award from KEPCO in June 2026.
In the first half the company also secured four extra-high-voltage grid contracts in Scotland worth roughly KRW 100bn, an extra-high-voltage grid job for a solar plant in Haenam worth about KRW 50bn, and the 154kV submarine cable project in Sinan.
On capacity, the second Dangjin submarine plant, designed to produce 640kV-class HVDC and 400kV-class HVAC submarine cable, is under construction, and the company has showcased an HVDC test centre able to test two 640kV land and submarine HVDC circuits at once.
The Taihan Vina 400kV plant in Vietnam targets full operation in 2027, while SK Securities put mass production at the second submarine plant in 2028 (Korea Economic Daily, April 2026).
European and North American channels include an HVDC framework agreement with National Grid of the UK, cooperation MOUs on HVDC submarine cable with Jan De Nul and Boskalis, and participation in CIGRE 2026 in Paris in August 2026.
On funding, press reports say the second submarine plant and vessel acquisition were backed by roughly KRW 550bn of financing from the Export-Import Bank of Korea, and the company was designated a supply-chain stabilisation lead company in submarine cable.
SK Securities projected 2026 revenue of KRW 4,243.0bn and operating profit of KRW 188.0bn, a 4.4% margin (Korea Economic Daily, April 2026).
With the profit structure split, earnings-based and asset-based multiples read differently here. Summing the four most recent quarters leaves net income attributable to owners in the red, so a price-to-earnings multiple cannot be calculated and is not displayed on screen.
By contrast the operating margin improved from 2.0% in 2022 to 3.5% in 2025 and then above 5% in the first half of 2026, so it is worth separating out the fact that the losses originate in derivative valuation rather than operations.
Relative to book value the shares trade at a premium, which reads as expectations around backlog expansion and the shift into submarine and HVDC work being priced ahead of asset value.
There is no cash dividend per share in the confirmed filings, so no dividend yield is formed, and that sits alongside the large ongoing investment in the second submarine plant and the test centre.
The Korea Economic Daily noted in an April 2026 article that the earnings-based multiple was a burden, while SK Securities forecast at the same time that the annual profitability step-up would continue.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04
The KRW 4,062.9bn backlog at end-Q2 2026 was the first time the company passed KRW 4trn, far above the KRW 1,065.5bn of 2021. Set against 2025 revenue of KRW 3,636.0bn, it represents more than a year of work. Q2 new orders of KRW 727.2bn kept the inflow going.
Because backlog is contracted volume not yet recognised as revenue, it forms the base for future revenue recognition.
The operating margin improved from 2.0% in 2022 to 2.8% in 2023, 3.5% in 2024-2025, then roughly 5.6% in Q1 2026 and 5.1% in Q2. The company and press coverage attribute this to a rising share of extra-high-voltage and submarine cable and to higher overseas project revenue in North America and Singapore.
HVDC and 640kV-class submarine cable are classed as relatively high-value-added products. That said, brokerage estimates also suggest part of the gain came from copper price effects in the materials division.
In July 2025 the company acquired the submarine installation specialist Taihan Ocean Works and added the 10,000-tonne vessel Skandi Connector to its existing Palos. The 154kV Sinan submarine cable project won in April 2026 is the first job combining production at Dangjin with laying by the subsidiary.
In submarine work, transport and offshore installation capability increasingly matter as much as manufacturing when bidding. Stage EP2 of the 500kV HVDC East Coast-East Seoul project was likewise won on a turnkey basis covering supply and installation of 86km of submarine cable.
Q1 2026 showed a KRW 7.4bn owners' net loss and Q2 a KRW 88.4bn loss, so operating improvement did not reach the bottom line. The company cited convertible-bond embedded-derivative valuation losses and currency-forward losses as the causes of the KRW 173.3bn first-half derivative loss.
A KRW 24.2bn owners' net loss also occurred in Q2 2025, making quarterly volatility a repeating pattern. Regardless of the company's statement that no cash left the business, the structure makes earnings-based metrics hard to use.
The debt-to-equity ratio rose from 97.1% in 2023 and 76.6% in 2024 to 114.0% in 2025. Operating cash flow was negative KRW 171.3bn in 2025, a sharp deterioration from KRW 6.8bn in 2024, and it was also negative KRW 46.6bn in 2022.
The second 640kV-class submarine plant, the Dangjin HVDC test centre, the 400kV plant in Vietnam and vessel acquisitions are all proceeding at once. Borrowing needs and working-capital requirements could grow together until the investments start paying back.
LS Cable & System is the domestic first mover in submarine cable, and the experience gap can weigh in tenders where global buyers assess track record. Materials-division earnings are directly linked to copper prices, so inventory gains during upswings reverse when prices fall.
As the overseas revenue share grows, swings in hedging results such as currency forwards widen as well. The company itself stated that its currency-forward contracts produced losses in the first half of 2026 as exchange rates spiked.
Convertible-bond embedded derivatives are measured at fair value under K-IFRS, and the company said the measurement produced a loss. The 153rd privately placed convertible bond was fully converted into shares after conversion rights were exercised on 21 April 2026.
The resulting increase in share count dilutes per-share metrics. If derivative valuation items remain, quarterly swings unrelated to operating performance could recur.
In turnkey submarine work, design, production, transport and laying fall under a single scope of responsibility, so a delay in one stage spreads to total cost and delivery.
Offshore installation can slip with weather and sea conditions, and areas with strong tidal variation such as Korea's west coast raise the difficulty. If the 640kV-class second submarine plant or the 400kV Vietnam plant start later than planned, recognition of high-value product revenue slips too. For large national grid programmes, the tender timetable itself depends on policy decisions.
A substantial part of domestic demand is tied to policy timetables such as KEPCO's long-term transmission plan and the West Coast energy highway, so changes or delays feed straight into order size. Offshore wind rules and permitting pace are also variables for submarine cable volume.
Globally the company competes with large European players and the domestic first mover at the same time, and bigger projects weigh price and track record together. The company has also previously been involved in patent litigation with a competitor.
Q3 2026 results. Watch whether revenue holds above KRW 1trn, whether the operating margin sustains the 5%-plus level of the first half, and which way the bottom line moves as derivative valuation swings narrow.
Q3 quarterly report filing. The key items are the trajectory of the debt-to-equity ratio, which reached 114.0% in 2025, the direction of operating cash flow after 2025's negative KRW 171.3bn, and whether the backlog stays above KRW 4trn.
Progress on tenders for the West Coast energy highway and follow-on HVDC sections, plus single-sale and supply contract filings for European and North American projects. A rising share of turnkey awards can change both deal size and margin structure.
Whether the Taihan Vina 400kV extra-high-voltage cable plant in Vietnam enters full operation. The company said it broke ground in March 2026 targeting 2027 start-up, and the timing directly affects when Southeast Asian extra-high-voltage revenue is recognised.
Full-year 2026 results and dividend policy. With no cash dividend per share in confirmed filings through 2025, this is when the capital-allocation balance between heavy capex and shareholder returns should become visible.
Taihan Cable & Solution sits in a phase where its core operating metrics and its bottom line tell different stories.
Revenue grew from KRW 2,450.5bn in 2022 to KRW 3,636.0bn in 2025 and operating profit from KRW 48.2bn to KRW 128.6bn, and the first half of 2026 combined quarterly revenue above KRW 1trn with an operating margin above 5%.
Yet net income attributable to owners was a loss of KRW 7.4bn in Q1 2026 and KRW 88.4bn in Q2, which the company attributed to convertible-bond embedded-derivative valuation losses and currency-forward losses, stating that no cash left the business.
Supporting the growth case are the record KRW 4,062.9bn backlog at end-Q2 2026, the turnkey award on stage EP2 of the 500kV HVDC East Coast-East Seoul project, and an integrated production-transport-laying chain built through Taihan Ocean Works and its cable-laying vessels.
On the other side are the debt-to-equity ratio that rose to 114.0% in 2025, negative operating cash flow of KRW 171.3bn, the investment load of running the second submarine plant, the test centre and the Vietnam plant at once, and its challenger position in submarine cable.
What has to be verified is whether the first-half margin level holds from Q3 onward, whether the bottom line normalises as derivative valuation items shrink, and how far capital spending pressure on cash flow and the balance sheet is contained. This report is for information purposes and does not contain any buy or sell recommendation.
Report written 2026-09-05 · Data as of 2026-09-04
This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.