Gaon Cable: Strong Revenue Growth and a 391.7% One-Year Share Gain Meet Thin Margins and High Multiples

Thesis

The data supports a clear growth story: revenue rose in each of the last four years shown, and operating income and net income have risen alongside it. Return on equity has improved from 2.2% in 2021 to 13.1% on a trailing basis.

The data does not show that profitability has caught up with the share price. Operating margin is 3.4% and net margin is 2.2%. The trailing P/E of 68.6x is far above the 26.5x recorded at the end of 2025. Free cash flow is negative at ₩190.3B and borrowings of ₩547.4B exceed cash of ₩138.6B, so growth appears to be funded partly by debt. Investor flow, foreign ownership and short-balance data are not available, so positioning cannot be assessed.

Business overview

Gaon Cable is a KOSPI-listed electrical equipment company, founded on 1947-09-24 and listed on 1987-06-08. It has 16,543,115 listed shares and a market capitalization of about ₩4.4T as of 2026-10-12. The CEO is listed as 정 현.

The filing record shows frequent related-party transaction disclosures with affiliated companies, along with IR events on 2026-08-31 and 2026-10-08. One news headline (Maeil Business Newspaper) says an affiliate, Gaonchemical, is targeting the US nuclear market with dedicated cables. The data does not give a segment breakdown.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Report history

1. Oct 21, 2026Update noteModel fair value changeGaon Cable: Model Fair Value Estimate Cut 37% to ₩21,313 per Share
2. Oct 19, 2026Update noteEarningsGaon Cable Q3 2026 Preliminary Results: Operating Profit Roughly Doubles Year on Year
3. Oct 13, 2026InitiationGaon Cable: Strong Revenue Growth and a 391.7% One-Year Share Gain Meet Thin Margins and High Multiples