Kiwoom Securities published a company brief on 7th July arguing that Gaon Cable (KRX: 000500) is poised for a sustained improvement in profitability, driven by its growing foothold in the North American power-cable market and rising demand from AI data centres.
The scale of Gaon Cable's North American pivot is striking. Revenue from power-cable sales to North America reached 516.5bn won in 2025, an 863% increase year on year. The bulk of that growth came from LSCUS, the company's American subsidiary, which contributed 417.6bn won. The parent company's direct exports to North America also rose sharply, climbing 84% to 98.8bn won.
Kiwoom Securities projects North American power-cable revenue will reach 645.6bn won in 2026. LSCUS plans to double its production capacity for AI data-centre power cables, with the first new line scheduled to begin operations in October this year and a second line to follow in April 2027. Most of the incremental output from the first expansion has already been secured through advance orders from customers.
The buildout of AI data centres is also fuelling growth in bus ducts — the enclosed metal channels used to distribute high-voltage electricity within large facilities. LSCUS is estimated to have generated roughly 80bn won in bus-duct revenue in 2025. LS Cable & System, Gaon Cable's parent, has signed long-term contracts with major technology companies worth more than 5 trillion won in aggregate, and annual bus-duct revenues are expected to reach several hundred billion won in the years ahead.
As high-margin product lines account for a larger share of the sales mix, Kiwoom Securities expects the company's operating margin to widen by 0.5 percentage points to 3.6% in 2026. Over the same period, total revenue is forecast to rise 16% to 2.9455 trillion won, while operating profit is expected to jump 34% to 106bn won.
Gaon Cable's shares closed at 283,000 won on 6th July, giving the company a market capitalisation of 4.6817 trillion won. The stock has risen 714.8% over the past twelve months.