[Edaily Reporter PARK MIN ] On the 14th, SKSecurities reported that TaihanElectricWire(001440)’s third-quarter operating profit is expected to fall slightly short of market expectations due to the decline in the won-dollar exchange rate. Reflecting the global sector multiple adjustment, the firm lowered its target price by 45.9%, from 61,000 won to 33,000 won. This represents an upside potential of 33.6% compared to the previous trading day’s (October 13) closing price of 24,700 won.

Na Min-sik, an analyst at SKSecurities, stated in a report published today, “A short-term decline in the exchange rate could negatively impact the won-denominated conversion of foreign currency revenue and limit the pace of profit growth,” adding “To reflect the decline in multiples for global power equipment and wire manufacturers, we have lowered the target EV/EBITDA multiple for the 2027 projected EBITDA of 307 billion won from 38x to 22x, thereby adjusting the target price to 33,000 won.”

He continued, “This is a variable unrelated to the trend of structural fundamental improvement driven by the expansion of ultra-high-voltage and subsea projects and the growing share of high-value-added products,” adding, “Although we have lowered the multiple, earnings growth is expected to continue in 2027 based on profitability improvements centered on high-voltage and subsea cables.”

According to SKSecurities, Taihan Cable & Solution’s third-quarter consolidated revenue is estimated at 1.112 trillion won, a 30.1% increase year-over-year, while operating profit is projected to rise 54.8% to 46 billion won. Revenue is in line with the market consensus (1.042 trillion won), but operating profit is approximately 9.8% below the consensus (51 billion won).

However, the company’s business environment and construction capabilities are assessed to be continuously strengthening. Regarding the copper supply chain, upward price pressure due to supply instability—following uncertainty over wage negotiations at major Chilean mines in late September and the Sentinella mine strike in October—continues, which is favorably impacting sales growth in the materials division driven by raw material price linkages.

A quantum leap in subsea cable construction capabilities has also become apparent. The new cable-laying vessel “Scandi Connector” completed its arrival in South Korea and delivery in July and was deployed for the Yeonggwang Nakwol offshore wind project in August, establishing a two-vessel operation system alongside the existing “Palos.” This has significantly strengthened the company’s competitiveness in securing turnkey contracts covering the entire process—from cable manufacturing to transportation, laying, and installation—and capital expenditures (CAPEX) for the construction of the second subsea cable plant are proceeding smoothly.

SKSecurities forecasts Taihan Cable & Solution’s 2026 annual revenue at 4.575 trillion won and operating profit at 227 billion won. This represents a 25.8% increase in revenue and a 76.8% increase in operating profit compared to the previous year. The firm further predicts that the company will continue its robust growth trend in 2027, recording revenue of 4.817 trillion won and operating profit of 259 billion won.