[Featured Stock] Gaon Cable Hits Upper Limit... Strong Earnings Expectations and Yoon Seok-yeol Theme?

▲Yoon Jae-in, CEO and Vice President of Gaon Cable. (Provided by LS)

[Asia Economy Reporter Ji Yeon-jin] On the 2nd, Gaon Cable surged to the upper price limit amid expectations of improved earnings.

Gaon Cable is trading at 39,350 KRW, up 29.87% from the previous day on the KOSPI market. This is a 52-week high. As the cable industry experiences a boom, expectations of improved earnings have been reflected, and among investors, rumors have spread that the company's CEO Yoon Jae-in shares the Pyeongyang Yoon clan lineage with former Prosecutor General Yoon Seok-yeol, a presidential candidate, which appears to have boosted the stock price.

Earlier, Research Al-eum predicted improved earnings for Gaon Cable amid the booming cable market and price increases, suggesting a target price of 52,000 KRW.

Researcher Kim Do-yoon of Research Al-eum explained, "The average price per ton of copper, a major raw material, rose 30.1% from 7.55 million KRW last year to 9.82 million KRW in the first quarter of this year," adding, "The average selling price of Gaon Cable's domestic cable products also increased by 26.4%."

He emphasized, "Generally, cable companies link their selling prices in supply contracts to raw material market prices, so the rise in copper prices leads to improved earnings for Gaon Cable." Furthermore, he said, "According to LME standards, copper prices rose from $8,850 per ton on March 31 to $10,032 on the 27th," and added, "We expect strong earnings in the second quarter due to the effect of price increases."