Taihan Cable sees best profit in 15 years on foreign orders

Taihan Cable & Solution Co., a major South Korean cable manufacturer, on Tuesday said its 2023 operating profit hit the largest level in 15 years as it secured more orders from other countries such as the US, sending its share prices to a nearly two-week high.

Taihan said its preliminary operating profit jumped 62.8% to 78.4 billion won ($58.8 million) last year, the largest since 2008, as sales grew 16.1% to a 12-year high of 2.8 trillion won. Its net profit more than tripled to 67 billion won in 2023, according to the company’s regulatory filing.

In the fourth quarter of 2023, its operating profit eased 1.4% to 19.4 billion won from a year earlier, although sales rose 15.8% to 757.2 billion won. The quarterly net profit nearly trebled to 32.7 billion won.

The company said strong orders from the US, Europe and the Middle East contributed to its healthy earnings in 2023 while providing a bright business outlook.

“The global power infrastructure industry’s outlook is rosy as investments in renewable energy sectors, especially in developed markets such as the US and Europe, are growing and replacement demand for old power grids is increasing,” said a Taihan official.

“We aim to maintain solid earnings growth this year by raising sales and winning more new orders through close cooperation with overseas subsidiaries and branches.”

ACTIVE INVESTMENTS

After the healthy earnings and business prospects, Taihan’s shares ended up 2.6% at 9,810 won in the South Korean main stock market, the highest close since Jan. 12, outpacing a 0.6% gain in the wider Kospi.

Taihan enjoyed cumulative orders of more than 300 billion won in the US for a second consecutive year in 2023. The company also secured deals to build high-voltage power grids in Germany and Bahrain.

The company is actively investing in the submarine cable business, which is rapidly growing due to the increasing demand for renewable energy.

It spent 720 billion won including 470 billion won secured by a rights offering last year, on its second submarine cable factory under construction to be completed in 2026. It also bought South Korea’s only cable-laying vessel for offshore wind power to enhance its competitiveness in the sector.

Write to Eui-Myung Park at uimyung@hankyung.com
 
Jongwoo Cheon edited this article.