Corporate Logo(source: taihan.com)
Hana Securities, on the 18th, issued a “BUY”' rating for Taihan Cable & Solution(001440) with a target price of 16,000 won, initiating coverage on the stock. The stock closed at 12,750 won on the previous trading day.
Yoo Jae-seon, an analyst at Hana Securities, stated, "With the anticipated rise in power demand, not only will the demand for transmission equipment increase, but there will also be a corresponding rise in the demand for ultra-high voltage cables, which is expected to expand orders in the medium to long term." He also highlighted that after the ultra-high voltage projects won in Singapore and Sweden in Q4 2024, opportunities in Taiwan and Europe are also abundant.
In 2024, Taihan Cable & Solution's new orders reached 3.7 trillion won, with its order backlog also hitting a record high of 2.8 trillion won. The company’s order backlog is increasingly concentrated in the Americas and Europe, which is expected to lead to gradual margin improvement, according to Yoo's analysis.
Yoo forecasts that Taihan Cable & Solution’s revenue for this year will reach 3.6 trillion won, a 9.7% increase from the previous year. This growth is supported by the high level of the won-dollar exchange rate compared to the previous year, along with a strong performance in copper prices since February, as reflected in the LME copper prices.
With the order backlog continuing to reach record levels, Yoo expects that higher-priced orders will gradually reflect in the company’s earnings. Additionally, revenue recognition from the domestic Yeonggwang Nakwol offshore wind power project is expected to begin this year.
Yoo also predicts that Taihan Cable & Solution’s operating profit will increase by 17.6% year-over-year to 134.8 billion won. As the share of ultra-high voltage and subsea cable sales expands, both the company's scale and margin are expected to improve starting in the second half of 2025.
He noted that "MV products may face short-term profitability challenges due to increased competition both domestically and abroad," but emphasized that the overall demand remains robust, and there is room for recovery in the long term as the production share of MV products from major manufacturers declines.
Yoo pointed out the company’s ongoing investment in subsea cable production facilities in anticipation of global market growth. Upon completion, the production capacity is expected to expand to 18,000 metric tons, more than five times its current capacity. This expansion will enable Taihan Cable & Solution to meet both domestic and international demand.
With the passing of the domestic offshore wind power special law, investment in infrastructure is expected to become more active. Taihan Cable & Solution has made preemptive investments with the goal of starting production in 2027, and further growth is expected as the market matures. The company currently owns one subsea cable laying vessel and plans to acquire another by 2028, which will further strengthen its market share based on its superior turnkey project capabilities.
Yoo concluded, "While there may be initial learning costs as new products enter overseas markets, the company is expected to share in the high margins already established in the market as it emerges as a new supplier in an oligopolistic industry dominated by a few players."
*[KOSPI]Taihan Cable & Solution(001440) is a comprehensive cable company that produces and sells products such as high-voltage cables, materials, telecommunication cables, and conducts various cable-related construction projects. The market capitalization is 2.3772 trillion won(as of March 17, 2025, closing price).
Corporate Logo(source: taihan.com)
Hana Securities, on the 18th, issued a “BUY”' rating for Taihan Cable & Solution(001440) with a target price of 16,000 won, initiating coverage on the stock. The stock closed at 12,750 won on the previous trading day.
Yoo Jae-seon, an analyst at Hana Securities, stated, "With the anticipated rise in power demand, not only will the demand for transmission equipment increase, but there will also be a corresponding rise in the demand for ultra-high voltage cables, which is expected to expand orders in the medium to long term." He also highlighted that after the ultra-high voltage projects won in Singapore and Sweden in Q4 2024, opportunities in Taiwan and Europe are also abundant.
In 2024, Taihan Cable & Solution's new orders reached 3.7 trillion won, with its order backlog also hitting a record high of 2.8 trillion won. The company’s order backlog is increasingly concentrated in the Americas and Europe, which is expected to lead to gradual margin improvement, according to Yoo's analysis.
Yoo forecasts that Taihan Cable & Solution’s revenue for this year will reach 3.6 trillion won, a 9.7% increase from the previous year. This growth is supported by the high level of the won-dollar exchange rate compared to the previous year, along with a strong performance in copper prices since February, as reflected in the LME copper prices.
With the order backlog continuing to reach record levels, Yoo expects that higher-priced orders will gradually reflect in the company’s earnings. Additionally, revenue recognition from the domestic Yeonggwang Nakwol offshore wind power project is expected to begin this year.
Yoo also predicts that Taihan Cable & Solution’s operating profit will increase by 17.6% year-over-year to 134.8 billion won. As the share of ultra-high voltage and subsea cable sales expands, both the company's scale and margin are expected to improve starting in the second half of 2025.
He noted that "MV products may face short-term profitability challenges due to increased competition both domestically and abroad," but emphasized that the overall demand remains robust, and there is room for recovery in the long term as the production share of MV products from major manufacturers declines.
Yoo pointed out the company’s ongoing investment in subsea cable production facilities in anticipation of global market growth. Upon completion, the production capacity is expected to expand to 18,000 metric tons, more than five times its current capacity. This expansion will enable Taihan Cable & Solution to meet both domestic and international demand.
With the passing of the domestic offshore wind power special law, investment in infrastructure is expected to become more active. Taihan Cable & Solution has made preemptive investments with the goal of starting production in 2027, and further growth is expected as the market matures. The company currently owns one subsea cable laying vessel and plans to acquire another by 2028, which will further strengthen its market share based on its superior turnkey project capabilities.
Yoo concluded, "While there may be initial learning costs as new products enter overseas markets, the company is expected to share in the high margins already established in the market as it emerges as a new supplier in an oligopolistic industry dominated by a few players."
*[KOSPI]Taihan Cable & Solution(001440) is a comprehensive cable company that produces and sells products such as high-voltage cables, materials, telecommunication cables, and conducts various cable-related construction projects. The market capitalization is 2.3772 trillion won(as of March 17, 2025, closing price).