Daehan Electric Wire achieved its highest quarterly performance to date, driven by strong demand in its high-voltage (HV) and submarine cable businesses. The company reported a record backlog of over 4 trillion won for the first time in its history, bolstered by increased global investment in power networks.
On July 30, Daehan Electric Wire announced its preliminary results for the second quarter, reporting revenue of 1.1987 trillion won and an operating profit of 608 billion won. This marks a 30.8% increase in revenue and a 113% increase in operating profit compared to the same period last year. Both figures represent the highest quarterly results in the company's history.
Following its first quarter of surpassing 1 trillion won in revenue last year, the company has maintained this level for three consecutive quarters, demonstrating both growth and profitability.
For the first half of the year, cumulative revenue reached 2.282 trillion won, with operating profit totaling 1.213 trillion won, reflecting increases of 28.8% and 117.8%, respectively, compared to the same period last year. Notably, the operating profit for the first half alone exceeded 94% of last year's total annual operating profit of 1.286 trillion won.
The improvement in performance was primarily driven by the high-voltage and submarine cable sectors. Sales from domestic and international power network projects, including those in North America and Singapore, contributed significantly to this growth. The industrial wire segment, supplying to plants and infrastructure, also benefited from increased domestic and international projects.
New orders continued to rise steadily, with the company securing 727.2 billion won in new contracts during the second quarter. By the end of the second quarter, the backlog reached 4.0629 trillion won, surpassing 4 trillion won for the first time in the company's history. This growth reflects increased investment in power networks and rising demand for high-voltage cables, as well as enhanced competitiveness in the global market.
Daehan Electric Wire noted that the expanded backlog provides a stable revenue base for the coming years, enhancing the visibility of its performance.
During an investor relations meeting held on the same day, the company highlighted its competitive edge in the high-voltage direct current (HVDC) and submarine cable sectors, which it is developing as next-generation growth drivers. The company emphasized its capabilities in executing HVDC turnkey projects, including the recently secured '500kV HVDC East Coast to East Seoul Construction Project (EP2)', which encompasses design, production, testing, and construction.
Building on this foundation, Daehan Electric Wire plans to expand its presence not only in the domestic power network market but also in the global HVDC market. The HVDC market is rapidly growing due to the global expansion of renewable energy and increasing interconnections between national power grids.
The company has also strengthened its competitiveness in the submarine cable sector, recently acquiring a 11,000-ton submarine cable-laying vessel, the 'Scandi Connector'. Together with the existing 'Palos', Daehan Electric Wire has established the only CLV fleet in the country, enabling it to perform turnkey operations from production to transportation, laying, and construction.
A company representative stated, "With the expansion of AI data centers and increased global investment in power networks, the high-voltage and submarine cable markets are entering a significant growth phase. Based on our backlog exceeding 4 trillion won, we will continue to achieve stable growth while further expanding our global market presence in high-value sectors such as HVDC and submarine cables."
* This article has been translated by AI.
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