On April 23, South Korean cable stocks staged one of the market's most dramatic sessions of 2026. Daewon Cable surged +29.97% to close at KRW 8,370, effectively hitting the daily limit-up, while Gaon Cable gained +23.06% and LS Marine Solution rose +12.74%. The rally has reignited debate over whether Korea's power infrastructure sector is entering a structural supercycle.
Two Catalysts With Very Different Time Horizons
Two forces drove the gains. First, structural AI demand: the International Energy Agency (IEA) projects global data center electricity consumption will grow from roughly 415 TWh in 2024 to 945 TWh by 2030 — approximately 15% annually. Hyperscale AI data centers now require 100+ MW of power, up from 10-25 MW for traditional facilities. That demand flows directly into high-voltage cable manufacturers. Second, event-driven Iran ceasefire optimism: naphtha, a key raw material for cable insulation and sheathing, is sensitive to Strait of Hormuz stability. Hopes for a ceasefire improved cost outlooks for cable producers. But with the April 11-12 Islamabad talks ending without a deal, this catalyst can evaporate quickly.
The Backlog Data Is Real — But for Which Names?
The structural case has concrete numbers. LS Cable & System reported a KRW 7.63 trillion order backlog at end-2025, up 22% year-on-year. LS Marine Solution's revenue surged 87.4% YoY to KRW 244.2 billion in 2025, driven by offshore wind undersea cable contracts. Combined with Daehan Cable, total confirmed backlog for Korea's two largest cable producers reaches KRW 11.29 trillion. Daehan Cable is also building a second Dangjin plant, targeting 5x capacity expansion by 2027.
The Warning: Small-Cap Valuations Are Stretched
The rally's biggest movers — Daewon Cable and Gaon Cable — have limited public backlog disclosure and serve primarily domestic construction and defense clients, not AI infrastructure directly. Daewon Cable's PBR reached approximately 5.7x, up 274% from its 52-week low of KRW 2,235. Gaon Cable's order mix is weighted toward Korea Electric Power Corp. and construction clients. Both stocks show momentum-driven moves, not backlog-driven moves. The structural demand thesis is strongest for LS Cable & System and Daehan Cable.
Investor Takeaway
The base-case scenario (50% probability): structural demand is real and growing, but small-cap valuations have run ahead of fundamentals, and the Iran-related catalyst is fragile. The disciplined approach is a structural position in large-cap names with confirmed backlogs, while keeping small-cap allocation tightly capped. Before taking any position, check Daehan Cable's Dangjin Phase 2 completion schedule on DART and LS Cable's quarterly backlog updates.
For the full analysis in Korean, visit Snakestock.
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