Gaon Cable가온전선

Gaon Cable posted a record third-quarter operating profit on US AI data center demand, but its share price has fallen sharply over the past month.

Gaon Cable is a Korean cable maker whose revenue and profit have grown quickly over the past two years, with trailing twelve-month revenue of about ₩2.9T and operating income of about ₩98B as of H1 2026. The share price is ₩227,000, down 28.7% over one month but up 569.7% over one year, and it trades at a high valuation of about 105 times trailing earnings. Cash flow is negative on a trailing basis, and leverage is high at 213% liabilities to equity.

What stands out

• Annual revenue rose from about ₩1.07T in 2021 to about ₩2.55T in 2025, with 2025 revenue growth of 47.4% and net income of about ₩51B.
• Operating margin is thin, at 3.4% on a trailing basis and 3.1% for 2025, so small changes in costs or volumes can move profit a lot.
• Preliminary consolidated filings and news reports from 19 October 2026 cite third-quarter operating profit of about ₩52B, up 99.1% year on year, linked to US AI data center and power infrastructure demand.
• Trailing free cash flow is negative at about -₩190B, while borrowings are about ₩55B against cash of about ₩139B.
• Valuation is far above peers on some measures: trailing P/E of 105.2 and P/B of 12.7, compared with a peer P/E range of about 19 to 59 where data is available. The data's DCF model gives a base value of ₩21,486, well below the current price, and a bull value of ₩49,544, so the model output is a wide range.

What to watch

• The full half-year or third-quarter filings, to confirm whether the preliminary profit jump holds and whether cash flow turns positive.
• Foreign investors have been net sellers over the last 20 days (about -₩72B) while retail investors bought, and foreign ownership is only 2%; watch whether these flows change.
• Dependence on US AI and power infrastructure demand, which news coverage names as the main driver; the data does not give guidance or forecasts.