Gaon Cable (000500): Structural Re-rating Driven by North American Infrastructure Expansion and AI Data Center Demand Shocks

• Source Facts: Kiwoom Securities Research Center (Based on the report published on July 7, 2026)
• Investment Opinion & Target Price: Not Rated
• Key Momentum: Establishing a dominant foothold in the North American market via overseas entity acquisition, and clear visibility in long-term supply expansion for premium power distribution equipment to global big tech firms.

📊 1. [Valuation Metrics and Investment Indicator Analysis]

Key Investment & Valuation Architecture (Focusing on 2026E Forecasts)

• Current Market Positioning: As of July 6, 2026, the stock closed at KRW 283,000, bringing its total market capitalization to KRW 4,681.7 billion.
• Valuation Multiples: For the 2026E baseline, the forecasted P/E ratio stands at 117.8x, P/B ratio at 14.26x, and EV/EBITDA at 35.4x.
• Operational Efficiency: Return on Equity (ROE) for 2026E is projected to advance to 13.2% from 11.0% in the prior year, while the net debt ratio is managed at a stable 44.7%.

Annual Financial Performance Forecast Trends

• Revenue: KRW 1,498.6 billion in 2023 $\rightarrow$ KRW 1,727.1 billion in 2024 $\rightarrow$ KRW 2,545.7 billion in 2025 $\rightarrow$ KRW 2,945.5 billion in 2026E.
• Operating Profit: KRW 43.7 billion in 2023 $\rightarrow$ KRW 45.0 billion in 2024 $\rightarrow$ KRW 79.2 billion in 2025 $\rightarrow$ KRW 106.0 billion in 2026E.
• Net Profit (Controlling Interest): Shifting from KRW 25.4 billion in 2024 to KRW 51.4 billion in 2025, and projected to expand to KRW 70.2 billion in 2026E.
• Margin Profiles: Driven by an expanding mix of high-margin segments, the gross profit margin is estimated to shift from 8.1% in 2025 to 9.6% in 2026E, lifting the operating profit margin from 3.1% to 3.6% over the same period.

🚀 2. [Market Opportunity (TAM) and Detailed Earnings Estimates]

North American Power Cable Infrastructure Matrix

• Topline Expansion Breakthrough: In 2025, North American power cable revenue surged to KRW 516.5 billion. The newly integrated LSCUS generated KRW 417.6 billion, spearheading the company’s regional breakout, while parent-level direct exports to North America grew 84% YoY to KRW 98.8 billion.
• Sales Channel Diversification & Capital Expenditure: Massive grid updates and data center builds in the U.S. have widened sales channels from standard utility solar fields into individual hyper-scale data center projects and direct distribution networks. North American power cable revenue is projected at KRW 645.6 billion (+25% YoY) for 2026E. To match this trajectory, LSCUS will double its AI data center cable capacity, with Phase 1 validation starting in October 2026 (fully pre-ordered) and Phase 2 targeted for April 2027.

AI Data Center Power Distribution Product Segments

• Busduct Supply Chain Dynamics: Busduct systems, which securely route massive electricity volumes, are seeing rapid adoption across hyper-scale AI data centers. Following parent entity LS Cable & System’s massive long-term agreement exceeding KRW 5 trillion with global big tech firms, a structured supply ecosystem has been locked in: ‘LS Cable fabricates $\rightarrow$ LSCUS assembles/processes $\rightarrow$ end-delivery to client’.
• Topline Runway via High-Margin Turnkey Projects: LSCUS’s busduct revenue for 2025 is estimated at KRW 800 billion, with a clear multi-year runway toward several hundred billion KRW annually given the backlogged order visibility. Furthermore, separate data center engineering procurement construction (turnkey) projects—which combine component procurement with structural execution and command high single-contract margins—continue to expand internationally, lifting consolidated return metrics.

📝 Editor Comment

The recent trajectory in Gaon Cable’s financial parameters highlights a structural re-rating process rather than a cyclical upswing. Historically perceived as a domestic-focused supplier tied to low-to-medium voltage cable applications, the consolidation of LSCUS in 2025 has repositioned the company as a direct operational proxy for North American AI data center builds and secular grid upgrades. The true catalyst here is the qualitative shift in product mix. Penetrating the consolidated busduct market through parent-level big tech vendor status, alongside capturing highly profitable, large-scale data center turnkey projects, insulates its revenue base from commodity price fluctuations. As Phase 1 capacity rollouts commence in October 2026 under a fully pre-committed order backlog, the full-year volume scale into 2027 should spark notable margin leverage, defining a clear fundamental inflection point.

📢 Disclaimer and Source

Source

This content has been newly structured and written based on financial facts and numerical data from officially disclosed securities analysis reports.

Investment Risk Notice

This content is provided solely for informational and linguistic reference purposes. Under no circumstances does it constitute financial advice or a recommendation to buy or sell any specific financial instruments. All investment decisions and financial liabilities rest entirely with the individual investor.

Contact

Compliance & Copyright Inquiries

ksb220805@gmail.com