LS Cable Asia Achieves 'Record-Breaking Performance' in Q2... Impact of Increased Power Demand in Vietnam

LS Cable Asia Vietnam Factory Photo (Photo by LS Cable Asia)

[Asia Economy Reporter Jeong Hyunjin] LS Cable Asia announced on the 12th that its second-quarter performance this year recorded the highest results since its listing.

LS Cable Asia disclosed that its second-quarter sales reached 215.3 billion KRW and operating profit was 8.7 billion KRW, representing increases of 60% and 1484%, respectively, compared to the same period last year. This is a 62% increase in sales and a 20% increase in operating profit compared to the record performance in the first quarter of last year.

As the number one cable supplier in Vietnam, LS Cable Asia is showing rapid growth in Vietnam's renewable energy market. A representative from LS Cable Asia explained, "Vietnam's power sector profitability deteriorated in the second quarter of last year due to COVID-19, but from the second half of the year, domestic demand recovered, and demand for power cables began to increase."

The representative added, "Especially in the first half of this year, growth in Vietnam's renewable energy market boosted profitability in the power sector. From the second half of the year, continuous growth in the power sector and improvement in profitability in the previously stagnant communication (UTP and optical cables) sector are expected."

Earlier this year, LS Cable Asia announced it would supply distribution-level power cables worth 65 million USD (approximately 74.5 billion KRW) to the Singapore market, and it is expanding orders by signing a contract to supply submarine cables worth 5 million USD for an offshore wind power plant project in Vietnam.

LS Cable Asia is the holding company of two production subsidiaries in Vietnam (LS-VINA, LSCV) and a production subsidiary in Myanmar (LSGM). LS-VINA produces power cables such as HV (high voltage), MV (medium voltage), LV (low voltage), and wire materials (SCR). LSCV produces communication cables such as UTP and optical cables, MV and LV power cables, building wires, and bus ducts. LSGM produces LV power cables and overhead wires.