1. Q2 2025 Performance: What Happened?

Taihan Cable & Solution reported revenue of KRW 916.3 billion (up 7.2% YoY), operating profit of KRW 28.5 billion (down 3%), and a net loss of KRW 23 billion in Q2 2025. While revenue grew, profitability declined significantly.

2. Analyzing the Decline: Why Did This Happen?

Despite revenue growth, the net loss was primarily driven by rising raw material costs due to increasing international copper prices, initial investment costs in the submarine cable business, higher financing costs in a high-interest rate environment, and foreign exchange losses.

3. The Future of Taihan Cable & Solution: What’s Next?

Short-term challenges are anticipated due to continued raw material price and interest rate increases, as well as intensified competition. However, the growth of the submarine cable business, investments in new technologies, and a robust order backlog are expected to drive medium to long-term growth.

  • Positive Factors: Submarine cable market growth, investment in new technologies (superconducting cable development), strong order backlog.
  • Negative Factors: Raw material price volatility, potential delays in offshore wind projects, increasing financing costs.

4. Investment Strategy: What Should Investors Do?

Investors should focus on the company’s business transformation and the tangible results of its submarine cable business from a long-term perspective, rather than short-term earnings volatility. Closely monitoring profitability improvement trends, concrete achievements in the submarine cable business, the company’s response to exchange rate and raw material price fluctuations, and the impact of interest rate changes is crucial.