Taihan Electric Wire, Key to Power Infrastructure in the AI Era

Power facilities, along with communication infrastructure, have been identified as essential elements for AI data center operations.

In particular, the possibility of cooperation with renewable energy and small modular reactors (SMRs) is emerging, raising expectations for related industries. In the Gangwon region, increased investment in power infrastructure linked to the expansion of AI data centers is becoming visible.

Gaon Cable surged by cumulative double digits as its entry into the Canadian power market became visible. Sales in North America are projected to grow by over 50%.

The sharp rise in copper prices has benefited the wire and cable industry, positively impacting Gaon Cable's performance improvement.

As offshore wind power adoption expands, demand for submarine cables is significantly increasing, and Taihan Electric Wire is expected to be a key beneficiary.

Furthermore, it has secured a stable growth foundation through a diversified business portfolio, including manufacturing cables for the telecommunications industry and power transmission/transformation projects. It is solidifying its position as a core company in power infrastructure.

This serves as a strong foundation supporting the company's continuous growth.

Driven by expanding exports to the North American market, operating profit is expected to turn around. Despite exchange rate volatility, robust performance is anticipated, and the company is evaluated as a high-investment-value enterprise.

Analysis suggests that Taihan Electric Wire's stock price is being capped by legal disputes with the LS Group. If this risk is resolved, it is expected to be a catalyst for stock price appreciation.

The current stock price is in a sideways trading range, indicating relatively low price burden. The target price is set at 36,000 won, and the stop-loss price at 26,500 won.