[Click eStock] "Daehan Gwangtongsin, Optical Network Construction Capability in the AI Era"

On the 19th, SK Securities evaluated Daehan Optical Communication, stating, "With the advent of the artificial intelligence (AI) era, interest in communication infrastructure that can process more data safely and quickly will increase," and added, "It holds a very advantageous position in the global optical fiber and optical cable market."

On the same day, Na Seung-doo, a researcher at SK Securities, said, "Unlike existing data centers, if AI-dedicated data centers are built, the proportion of optical communication networks is expected to increase by about 5 to 8 times."

Researcher Na emphasized, "We need to pay attention to the fact that the basic optical communication network construction rate in major advanced countries, excluding South Korea and Japan, is significantly low," and explained, "Considering the demonstration of 5G communication services in high-frequency bands, the development of 6G technology, and the utilization of quantum cryptography communication, the basic construction and expansion of optical communication networks are not optional but essential."

He added, "Chinese optical fibers and optical cables, which led to the price collapse of optical fibers in 2018-2019, are losing competitiveness due to intensified geopolitical conflicts and trade disputes," and stated, "In this case, companies capable of producing high-quality optical fiber preforms, optical fibers, and optical cables with the necessary facilities and experience are practically limited to the U.S.'s Corning, Japan's Sumitomo, and South Korea's Daehan Optical Communication."

Demand for communication and power cables is increasing worldwide, and the trend of domestic production and consumption is expanding. Researcher Na said, "Daehan Optical Communication is reviewing various measures to establish a local production and sales system. Preparations to actively target major country markets are expected to be completed as early as this year," and added, "As global optical fiber prices trend upward, the profit leverage will become even more pronounced."