[Edaily Reporter Park Jung-Soo ] On the 2nd, Yuanta Securities Korea projected that TAIHAN Fiberoptics Co.,LTD(010170)would see a full-scale earnings turnaround in the second half of the year, driven by rising demand for optical fiber due to the expansion of the AI data center (AIDC) market, an improved product mix centered on ultra-high-core-count optical cables, and increased exports to North America. The firm did not provide an investment opinion or a target price.
Lee Seung-woong, an analyst at Yuanta Securities Korea, “The shift in CPO (Co-Packaged Optics) implementation from the existing ‘Fiber Attach’ method to the ‘Detachable’ method is a factor accelerating the adoption of optical fiber,” he said. “Even with the adoption of CPO, optical fiber remains essential for inter-rack connections; therefore, in AI data centers, the total demand for optical fiber will increase while the trend toward higher-core-count cables will proceed simultaneously.”
The analyst noted, “TAIHAN Fiberoptics Co.,LTD is the only company in Korea capable of producing everything in-house, from raw materials to finished optical cable products, and has also internalized key raw materials such as silicon tetrachloride and the helium gas used in the optical fiber drawing process,” adding, “The company has secured hedging mechanisms to respond to fluctuations in optical fiber prices and has achieved yield stability through the VAD process.”
The analyst continued, “TAIHAN Fiberoptics Co.,LTD has established 864-core ultra-high-core-count optical cables for AI data centers as a key growth driver and secured its first order for these cables in the first quarter of this year, surpassing the previous 288-core standard.” He explained, “Since the 864-core product has approximately three times as many cores as the 288-core version, the actual volume of optical fiber supplied increases significantly.”
He also noted, “If the technology premium is factored in, we expect to see an improvement in the product mix centered on high-margin products,” and predicted, “As parallel connections between GPUs expand in domestic AI data centers, not only will transmission capacity increase but the number of connections will also rise, further heightening the importance of ultra-high-core-count optical cables.”
He also highlighted the potential for expanded order intake in the North American market. The analyst noted, “Following its first order in February for 864-core ultra-high-core-count optical cables destined for U.S. data centers, TAIHAN Fiberoptics Co.,LTD secured an additional order in June,” and analyzed, “Since this contract is a long-term agreement (LTA) rather than a one-time spot transaction, it is likely to lead to repeat orders based on the company’s technical capabilities and delivery experience.”
The order backlog and optical fiber prices are also showing favorable trends. He noted, “In the second quarter of this year, the order backlog in the telecommunications sector exceeded 70 billion won for the first time since the fourth quarter of 2019, and in July of this year, domestic optical fiber cable exports increased by 14.4% month-over-month and 72.0% year-over-year.” “Driven by growing demand for optical fiber in Chinese data centers, local optical fiber prices have risen from around $2.50 in November of last year to over $12 recently,” he added.
Regarding the domestic market, TAIHAN Fiberoptics Co.,LTD noted, “TAIHAN Fiberoptics Co.,LTD maintains the top market share in Korea based on telecommunications cable volume, and in 2025, approximately one-third of its annual revenue came from the three major mobile carriers,” and projected, “As the domestic AI data center industry enters a phase of full-scale growth and average selling prices (ASPs) continue to rise, the company is expected to benefit even more significantly.”
The analyst also expects the trend of improving earnings to continue through the second half of the year. The analyst noted, “In the second quarter of this year, TAIHAN Fiberoptics Co.,LTD reported consolidated revenue of 49.1 billion won, a 17.8% increase year-over-year, and returned to profitability with an operating profit of 960 million won.” He added, “Considering that it takes approximately 3 to 4 months for exported products to be recognized as revenue after production, the earnings turnaround and accelerated profit growth compared to the previous year are expected to continue into the second half of the year.”
He estimated, “We project third-quarter consolidated revenue to reach 65.7 billion won, a 51.6% year-over-year increase, with operating profit at 6.37 billion won,” adding, “On an annual basis, revenue is expected to reach 210.6 billion won, a 51.0% year-over-year increase, and operating profit is projected to return to profitability at 9.14 billion won.”
He further emphasized, “Earnings visibility has improved, given the product mix shift toward high-ASP products and favorable optical fiber prices,” adding, “In the medium to long term, additional revenue streams from the U.S. BEAD program can also be expected, making this a good time to focus on the company’s solid fundamentals.”