KOSPIElectrical Equipment006340

Dawon Cable

₩13,390▲ 2.21%2026-10-02 close

Market Cap

₩1T

Turnover

₩25.3B

Volume

1.9M

Shares out.

78.4M

PER

82.4×

PBR

7.1×

EPS

₩157

Dividend Yield

0.00%

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

Report overview

Revenue Doubles, Margins Still the Open Question

Consolidation of an aluminum wheel subsidiary and higher cable prices have driven rapid revenue growth, but quarterly operating margins swinging between roughly 1% and 8% leave profitability, cash flow and balance-sheet questions unresolved.

1
2025 consolidated revenue rose 13.0% to KRW 624.5bn from KRW 552.8bn in 2024, yet operating profit fell from KRW 14.3bn to KRW 9.4bn, cutting the operating margin from 2.6% to 1.5%.
2
Q2 2026 revenue hit a quarterly high of KRW 278.1bn but operating profit was only KRW 3.7bn (1.3% margin), versus KRW 189.2bn revenue and KRW 14.7bn operating profit (7.8%) in Q1 2026.
3
Much of the growth came from aluminum wheel subsidiary Daewon Altec: the segment posted KRW 113.2bn in H1 2026 revenue and KRW 87.3bn in Q2, equal to 31.4% of group Q2 revenue (Bloter, August 2026).
4
Operating cash flow swung back to negative KRW 30.1bn in 2025 from positive KRW 4.0bn in 2024, while the debt-to-equity ratio rose from 99.4% to 127.9%.
5
In June 2026 the company issued a KRW 50bn 27th private-placement convertible bond; full conversion would create 4,291,845 new shares, about 5.04% of total shares outstanding.

Business structure

Daewon Cable manufactures and sells a range of wire and cable products centred on power and insulated cables; its main items include bare wire and power cables for transmission and distribution, insulated wire for wiring, and communication cables for local and long-distance networks.

The business splits into a cable division covering residential and industrial power supply, telecom network construction and cables for electrical equipment, autos and machinery, and an automotive aluminum wheel division.

Subsidiaries include Daemyung Cable (power and communication lines), Kumwon Cable (automotive wire production in China), Daewon FMI (conductors for automotive wire) and Daewon Altec (aluminum wheels).

The aluminum wheel unit posted consolidated revenue of KRW 97.4bn in fiscal 2025, and KRW 113.2bn in H1 2026 alone, already above the prior full year; after finished-product shipments resumed in April, Q2 revenue jumped 237.4% to KRW 87.3bn from KRW 25.9bn in Q1, or 31.4% of group Q2 revenue (Bloter, August 2026).

Sales are made through domestic and overseas construction firms and industrial power end-users, with revenue sensitive to product prices and global market conditions. Copper is the key input for the cable business, affecting both selling prices and costs at the same time.

By contrast, in the wheel business raw materials are procured on a customer-supplied paid basis, which the company says limits the impact of global prices and exchange rates.

Competitively, unlike the larger players that lead extra-high-voltage and submarine cable projects, Daewon's mix is weighted toward more commoditised distribution, insulated and communication cables, implying a different demand base and order process.

Earnings are therefore driven jointly by the cable cycle, domestic distribution and construction volumes, and the utilisation of the auto-parts subsidiary.

Earnings trend

Quarterly revenue · Operating profit

₩151.4B₩5.4B25Q2₩154.8B₩1.1B25Q3₩167.1B-₩5.5B25Q4₩189.2B₩14.7B26Q1₩278.1B₩3.7B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩562.4B₩1.3B2022₩515.4B₩13.1B2023₩552.8B₩14.3B2024₩624.5B₩9.4B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩151.4B	₩5.4B	3.6%
2025Q3	₩154.8B	₩1.1B	0.7%
2025Q4	₩167.1B	-₩5.5B	−3.3%
2026Q1	₩189.2B	₩14.7B	7.8%
2026Q2	₩278.1B	₩3.7B	1.3%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩562.4B	₩1.3B	₩1.4B	0.2%	1.5%	168.5%
2023	₩515.4B	₩13.1B	₩9.6B	2.5%	9.6%	134.1%
2024	₩552.8B	₩14.3B	₩6.8B	2.6%	6.0%	99.4%
2025	₩624.5B	₩9.4B	₩8.8B	1.5%	6.8%	127.9%

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

Earnings analysis

On an annual basis, revenue moved from KRW 562.4bn in 2022 to KRW 515.4bn in 2023, KRW 552.8bn in 2024 and KRW 624.5bn in 2025, expanding again after the 2023 trough.

Operating profit, however, went from KRW 1.3bn (0.2% margin) in 2022 to KRW 13.1bn (2.5%) in 2023, KRW 14.3bn (2.6%) in 2024 and KRW 9.4bn (1.5%) in 2025, so margins slipped in the year with the largest top line.

Net profit in 2025 was KRW 12.9bn, of which KRW 8.8bn was attributable to owners and about KRW 4.0bn to non-controlling interests, reflecting the subsidiary consolidation structure; net profit exceeding operating profit also implies a contribution from non-operating items.

Equity grew from KRW 113.8bn in 2024 to KRW 152.0bn in 2025 (including KRW 23.0bn of non-controlling interests), but liabilities rose from KRW 113.1bn to KRW 194.4bn, lifting the debt-to-equity ratio from 99.4% to 127.9%.

Cash flow is the clearer weak spot: operating cash flow went from positive KRW 31.8bn in 2022 to negative KRW 5.9bn in 2023, positive KRW 4.0bn in 2024 and negative KRW 30.1bn in 2025, a pattern of rising working-capital absorption during revenue expansion.

Quarterly, margins thinned sharply from KRW 151.4bn revenue and KRW 5.4bn operating profit in Q2 2025 to KRW 154.8bn and KRW 1.1bn in Q3, then Q4 brought an operating loss of KRW 5.5bn and a net loss attributable to owners of KRW 1.1bn despite KRW 167.1bn of revenue.

Q1 2026 saw recovery to KRW 189.2bn revenue and KRW 14.7bn operating profit, a 7.8% margin, with the company results summary citing price increases tied to higher London Metal Exchange copper prices, stronger demand for power and insulated wire, and the contribution of the newly consolidated aluminum wheel division.

Q2 2026, by contrast, delivered KRW 278.1bn of revenue but only KRW 3.7bn of operating profit (1.3%); per Bloter, Q2 revenue rose 83.7% year on year while operating profit fell 31.5%, and H1 revenue was KRW 467.3bn (+54.4%) with operating profit of KRW 18.4bn (+34.3%).

Summing the four quarters from Q3 2025 through Q2 2026 gives roughly KRW 789.2bn of revenue against about KRW 14.0bn of operating profit, confirming a structure where margins sit below 2%.

Industry analysis

The wire, cable and power equipment cycle is in a phase of structurally rising demand as AI data centres, renewable build-outs and ageing grid replacement overlap.

Citing data from the Korea Electrical Manufacturers Association, media reported that global grid investment topped USD 400bn for the first time in 2025, up 20% versus 2015, with expansion expected to continue through 2035.

Korean electrical industry output was forecast at KRW 47.1trn for 2026 with exports of USD 17.5bn.

The same report, however, flagged continued weakness in domestic private construction and facility investment, plus possible delays in power infrastructure project execution, as downside factors - directly relevant for a company weighted toward distribution and building wire.

On the regulatory side, KEPCO changed its procurement to order extra-high-voltage cable and joints separately, opening bids previously limited to three suppliers to cable specialists as well.

Industry participants expect incremental power demand of about 28GW, driving parallel investment in transmission lines and substations, yet analysts also caution that market expansion may not translate immediately into profitability, as capacity additions and new entrants sharpen competition.

In terms of positioning, the size gap with submarine and extra-high-voltage leaders is clear: Taihan Cable & Solution reported record quarterly results in Q1 2026 with consolidated revenue of KRW 1,083.4bn and operating profit of KRW 60.4bn, underscoring that Daewon's earnings hinge less on high-value project exposure and more on domestic commodity volumes and its ability to pass through prices.

Outlook

In its business report the company framed capital spending not as aggressive expansion but as executing 2026 facility investment flexibly and efficiently in line with market changes, investing to strengthen the competitiveness of existing core businesses.

On funding, the board decided on 10 June 2026 to issue a KRW 50bn private-placement convertible bond, raising KRW 34.5bn for operations and KRW 15.5bn for debt repayment, with a 0% coupon, a conversion price of KRW 11,650, 4,291,845 shares issuable on conversion equal to 5.04% of total shares, and a conversion window from 18 June 2027 to 18 May 2029.

The company disclosed that payment and issuance registration for this bond were completed on 18 June 2026. The next earnings hurdle is whether the aluminum wheel recovery is sustained; the resumption of finished-product supply was cited as the driver of Daewon Altec's Q2 revenue surge.

The company results summary projected continued growth in demand for automotive wire and aluminum wheels on wider EV adoption and vehicle lightweighting, but that is a company and industry view to be tested against reported quarterly figures.

On the domestic grid side, large projects such as the Honam semiconductor cluster and the West Coast energy highway are moving into execution, with the government and KEPCO planning first-phase power supply lines by end-2029 to match a 2030 industrial complex start-up, so the spillover into distribution and ancillary volumes is worth watching.

No company-issued annual revenue or profit guidance and no disclosed large order-backlog figure are currently verifiable, so the outlook is best tracked through quarterly results and segment revenue disclosures.

Valuation

PER

82.4×

PBR

7.1×

ROE

9.6%

EPS

₩157

BPS

₩1,819

Dividend per share

₩0

The earnings-based multiple is calculated on owner-attributable net profit for the four quarters from Q3 2025 to Q2 2026, and because that profit is thin relative to revenue, the multiple sits well above levels historically common among Korean wire, cable and power equipment names.

The premium to net assets is also sizeable, and it is worth noting that the in-house book value per share differs from the exchange-published basis, so the net-asset multiple can display differently at the same share price.

On dividends, no cash dividend per share is confirmed in the latest finalised disclosure, so the dividend contribution to total return is effectively absent.

Importantly, the quarterly operating margin swung from a loss in Q4 2025 to roughly 8% in Q1 2026 and about 1% in Q2 2026, meaning any multiple using profit as the denominator can move sharply from quarter to quarter.

In addition, conversion of the June 2026 convertible bond would increase the share count, so per-share metrics should be viewed with that potential dilution in mind. Cross-checking the live multiples shown on the screen card against the financial figures below is more useful than any single ratio.

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

Bull factors

Grid demand cycle plus procurement reform

The forecast that global grid investment exceeded USD 400bn for the first time in 2025 and will keep expanding through 2035 broadens the demand base for cable. Domestically, the industry sees roughly 28GW of incremental power demand and expects transmission line and substation investment to expand alongside it.

In addition, KEPCO's shift to ordering extra-high-voltage cable and joints separately lowered the bidding threshold for cable specialists, which is cited as an opportunity across the domestic cable sector. How much volume the company actually secures must be verified through future segment revenue and disclosures.

Aluminum wheel subsidiary lifts scale

Q2 2026 revenue of KRW 278.1bn was far above KRW 189.2bn in the prior quarter and KRW 151.4bn in Q2 2025. The driver cited was the aluminum wheel segment's KRW 113.2bn in H1 revenue and KRW 87.3bn in Q2, 31.4% of the group total, following the April resumption of finished-product supply (Bloter, August 2026).

This adds a second demand axis beyond a pure cable business. Segment profitability is not separately disclosed, however, so scale contribution and profit contribution should be assessed separately.

Track record of price pass-through in copper upcycles

In Q1 2026 the company posted KRW 189.2bn of revenue and KRW 14.7bn of operating profit, an operating margin of 7.8% and the strongest quarterly profitability in several years.

The company results summary attributed this to price increases tied to higher London Metal Exchange copper prices and stronger demand for power and insulated wire, which expanded cable segment revenue. It illustrates how inventory effects and price pass-through can support margins when input costs are rising. The same mechanism can work in reverse, which must be weighed alongside it.

Bear factors

Thin and unstable margins

Annual operating margins were 0.2% in 2022, 2.5% in 2023, 2.6% in 2024 and 1.5% in 2025 - never above 3%. Quarterly swings are wider still: an operating loss of KRW 5.5bn in Q4 2025, KRW 14.7bn of operating profit in Q1 2026 and KRW 3.7bn in Q2 2026.

Notably, Q2 2026 delivered record-level revenue of KRW 278.1bn yet only a 1.3% operating margin. The recurring pattern in which profit does not scale with revenue is the central weakness.

Cash flow and balance-sheet strain

Operating cash flow was negative KRW 30.1bn in 2025, a wide gap versus that year's KRW 9.4bn operating profit and KRW 12.9bn net profit. Liabilities rose from KRW 113.1bn in 2024 to KRW 194.4bn in 2025 and the debt-to-equity ratio climbed from 99.4% to 127.9%.

On top of that, the KRW 50bn convertible bond approved in June 2026 earmarked KRW 15.5bn for debt repayment, which is telling about the funding position. If top-line growth keeps absorbing working capital, growth itself can consume cash.

Dilution and expectations already embedded

The 27th convertible bond carries a conversion price of KRW 11,650, would create 4,291,845 shares equal to 5.04% of total shares, and its conversion window opens on 18 June 2027. Earlier, 1,339,745 shares were issued on 23 February 2026 through exercise of the 26th convertible bond.

A rising share count directly affects per-share metrics. Furthermore, with the earnings-based multiple far above levels historically common in the sector, the multiple itself can become a burden if profits do not follow expectations.

Risk factors

Raw materials and FX

Copper is the key input for cable: higher prices feed into selling prices but simultaneously raise cost and inventory exposure. Industry association projections also cite cable price increases stemming from copper supply disruption, making price volatility close to a constant.

For aluminum wheels the company says the customer-supplied procurement structure limits the impact of global prices and exchange rates, but a decline in customer volumes would hit finished-product revenue directly. The actual impact should be tracked through quarterly cost ratios and operating margins.

Project delays and intensifying competition

The industry outlook report flagged persistent weakness in domestic private construction and facility investment, plus possible delays in power infrastructure project execution, as downside factors.

With a mix weighted toward distribution and building wire, a construction slowdown can translate quickly into lower volumes. At the same time, analysts caution that market expansion may not immediately improve profitability and that capacity additions and new entrants could intensify competition. Demand growth and margin improvement may not arrive at the same pace.

Subsidiary earnings volatility

Aluminum wheel segment revenue is highly volatile by quarter, having surged 237.4% from KRW 25.9bn in Q1 to KRW 87.3bn in Q2. Because this reflects the one-off resumption of finished-product supply, a normalised revenue and margin level still needs confirmation.

Also, of KRW 12.9bn in 2025 consolidated net profit, KRW 8.8bn was attributable to owners, meaning part of subsidiary earnings accrues to non-controlling interests. The gap between consolidated scale and owner-attributable profit warrants attention.

What to watch next

Mid-November 2026
Q3 2026 quarterly report filing. Key checks are whether the 1.3% Q2 operating margin recovers and whether aluminum wheel segment revenue holds near the Q2 level.
Q4 2026
Actual bidding and award flow following KEPCO's shift to separate ordering of extra-high-voltage cable and joints, and whether the company participates. This is where the change in domestic competitive structure becomes observable.
February-March 2027
FY2026 results and business report filing. This will show whether operating cash flow turns positive from negative KRW 30.1bn in 2025, how the debt-to-equity ratio moves from 127.9%, and how the segment revenue mix shifts.
18 June 2027
Start of the conversion window for the 27th convertible bond (4,291,845 shares on conversion, 5.04% of total shares). A point to reassess the effect of a larger share count on per-share metrics.
H2 2026 through 2029
The ordering timeline tied to the government and KEPCO plan to complete first-phase power supply lines by end-2029 for a 2030 industrial complex start-up. Watch whether large transmission projects spill over into distribution and general-purpose cable volumes.

Overall view

Daewon Cable has been reshaped into a two-axis company: a cable business centred on power, insulated and communication cables, and an automotive aluminum wheel business.

Revenue rose 13.0% to KRW 624.5bn in 2025 from KRW 552.8bn in 2024 while operating profit fell from KRW 14.3bn to KRW 9.4bn, and H1 2026 delivered revenue of KRW 467.3bn (+54.4%) and operating profit of KRW 18.4bn (+34.3%).

Looking inside those numbers, however, a 7.8% operating margin in Q1 2026 sits next to 1.3% in Q2, so scale expansion has not yet translated into stable profitability.

A large part of that expansion came from the aluminum wheel segment, which reached KRW 87.3bn in Q2 after finished-product supply resumed in April, a driver whose durability still needs verification.

On the balance sheet, negative operating cash flow of KRW 30.1bn in 2025, a 127.9% debt-to-equity ratio and potential dilution from 4,291,845 shares equal to 5.04% of total shares upon conversion all sit together.

The industry backdrop points to a widening demand base, as seen in global grid investment topping USD 400bn for the first time in 2025, while weak domestic construction and facility investment and possible project delays pull the other way.

What ultimately needs monitoring is whether quarterly operating margins recover, the direction of operating cash flow, and stabilisation of the segment revenue mix; this report is for information purposes and contains no buy or sell opinion and no price target.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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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.