In the age of massive power grids, why is Taihan Electric Wire receiving attention again? > News

Recently, Taihan Electric Wire's stock price has been fluctuating in the high 30,000 won range due to extreme volatility in the market. Even in an exodus situation where large-scale domestic semiconductor stocks were sold, foreign investors maintained a steady buying trend in power infrastructure-related stocks, including Taihan Electric Wire, and appeared to shift the center of gravity of their portfolios. This is interpreted as a strategic decision to ride the huge trend of global power grid modernization that will last for more than 10 years, rather than simply a move aimed at short-term profits. Although the overall KOSPI market is shaken by the volume of debt investments and the activation of sidecars, Taihan Electric Wire is proving its own value by improving its structure focusing on high value-added product lines.

The core of Taihan Electric Wire’s growth scenario lies in ‘advancement of product mix.’ Breaking away from the general-purpose cable-centered business structure of the past, we are aggressively expanding the proportion of sales from ultra-high voltage cables and submarine cables, which have high technological entry barriers. According to analysis by major securities companies such as Yuanta Securities, the sales proportion of these high-value products is expected to rise sharply from 19% in 2025 to more than 26% in 2027. The Singapore Electric Power Authority project and the Scotland, UK transmission line project are decisive references that show that Taihan Electric Wire is recognized for its advanced technology in the global market. This qualitative growth in the order backlog will lead to a gradual increase in the operating profit ratio, allowing us to pass the temporary cost pre-recognition period and enter the phase of full-fledged profitability level-up.

The expansion of production capacity (CAPA) to support growth is also progressing as planned. The operation of Vietnam's ultra-high-voltage cable plant in 2027 and mass production of the second submarine plant in 2028 are key engines that will secure Taihan Electric Wire's future sales. In particular, the second submarine plant is evaluated to have an overwhelming production capacity that can generate sales of approximately 1 trillion won with a single facility. This is an essential step to preoccupy the rapidly increasing demand for submarine power transmission due to the expansion of offshore wind power generation complexes. By strengthening its turnkey capabilities to carry out everything from design to construction in domestic and overseas renewable energy projects, Taihan Electric Wire is evolving beyond a simple materials supplier into an energy infrastructure solution company that encompasses the entire project.

Of course, investors still need to remain cautious. The current price-to-earnings ratio (PER) is significantly above the industry average, showing that the market is placing a significant premium on the company's future value. In addition, issues such as the investigation of submarine cable technology leaks or block deals for major shareholders' shares act as factors that exert downward pressure on stock prices or create psychological burden in the short term. However, the prevailing assessment is that these internal and external variables have already been largely exposed to the market and reflected in prices. From a long-term perspective, unless the macro environment of global power grid investment changes, there is ample room for the current adjustment to be interpreted as an opportunity to reexamine the fundamental strength of companies and buy blue chip stocks at low prices.