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JONBUR Research · Update note

Taihan Cable & Solution · 001440 · Electrical equipment

Taihan Cable & Solution: Q3 Preliminary Sales Up 37.6% but Operating Profit Falls Sharply From Q2

Why this report

Written after:

Taihan Cable & Solution reported preliminary Q3 2026 consolidated sales of ₩1.18T, up 37.6% year on year, while quarterly operating profit fell 49.3% from the prior quarter to ₩30.9B. The sales growth supports the top-line part of the earlier thesis, but the margin drop and missing net income figures leave the profit question open.

Written Oct 29, 2026 · Data as of Oct 28, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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What happened

On 2026-10-29 the company published preliminary consolidated results for July to September 2026. These are provisional and may differ from final figures.

Sales were ₩1,176.4B, up 37.6% from ₩855.0B a year earlier and down 1.9% from ₩1,198.7B in Q2. Operating profit was ₩30.9B, up 4.5% from ₩29.5B a year earlier but down 49.3% from ₩60.8B in Q2. That implies an operating margin of about 2.6% for the quarter, versus about 5.1% in Q2 (our calculation from the filing figures).

For January to September, sales were ₩3,458.4B, up 31.7% from ₩2,626.8B, and operating profit was ₩152.1B, up 78.6% from ₩85.2B. The filing does not give pre-tax profit or net income for any period.

As background, a major supply contract was filed on 2026-10-27, equal to 3.1% of last year's sales. News reports describe it as a German 380kV grid order, about ₩115B for the parent company.

What it changes for the thesis

The previous report (2026-10-13) described steady revenue growth and improving operating margins, but said this had not reached the bottom line, with trailing net income of -₩15.4B. The Q3 sales growth fits the first half of that picture.

The margin side is less clear. Nine-month operating profit is well above last year, but the Q3 margin of about 2.6% is below the 4.7% trailing margin and below Q2. The filing gives no reason for the drop. Net income is not disclosed, so we cannot say whether the bottom-line weakness has eased. The new contract adds to the order picture but does not change these points.

What it changes for the valuation

Our model estimate is a DCF based on trailing figures to H1 2026 and a 9.6% discount rate. It gives bear ₩0, base ₩2,272 and bull ₩10,583 per share. This is a model estimate based on the assumptions shown, not a price target. The previous report had no model estimate, so there is no earlier range to compare with.

The shares closed at ₩22,100 on 2026-10-28, down 26.1% over one month, far above the base estimate and within the wide bear-to-bull range only at the bull end's upside gap. The model does not yet include these Q3 figures. Price-to-book is now 2.3 (2.5 in the previous report) and price-to-sales is 1.0. P/E is not available because trailing net income is negative.

Closing view

The results show strong sales growth and higher nine-month operating profit, but a sharp sequential fall in quarterly operating profit and no disclosed net income. Trailing free cash flow remains negative at -₩595.8B, and the model range is very wide, which reflects how sensitive the estimate is to its assumptions. The causes of the Q3 margin drop and the net result are not available. Full financial statements will be needed to judge whether the earnings quality is improving.

Model estimate of fair value

Bear
₩0
-100%
Base
₩2,272
-89%
Bull
₩10,583
-48%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 9.6%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 29, 2026Update noteEarningsTaihan Cable & Solution: Q3 Preliminary Sales Up 37.6% but Operating Profit Falls Sharply From Q2
  2. Oct 13, 2026InitiationTaihan Cable & Solution: Revenue Growth Continues, but Trailing Earnings Turn Negative After a Sharp Share Price Pullback

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information