[Featured Stock] Daewon Cable Likely to Pass Sample Test for LA Power Authority... Transformer to Cable Boom

Daewon Electric Wire & Cable is showing strong performance. Securities firms' analysis that it will grow riding the wave of the U.S. ultra-high voltage transformer boom appears to be influencing its stock price.

As of 9:35 a.m. on the 26th, Daewon Electric Wire & Cable is trading at 4,250 KRW, up 20.06% from the previous day.

Shinyoung Securities analyzed that Daewon Electric Wire & Cable is expected to benefit if it secures orders riding the wave of the U.S. ultra-high voltage transformer boom.

Researcher Kwon Deok-min explained, "Daewon Electric Wire & Cable has provided samples to several U.S. power authorities for export, and testing is currently underway. It is analyzed that the Los Angeles power authority is a likely candidate, and results are expected as early as the second half of next year."

He added, "Orders for wires from the U.S. in line with the U.S. ultra-high voltage transformer boom cycle are a factor in improving Daewon Electric Wire & Cable's performance."

He further stated, "Along with the transformer cycle, the wire sector is also entering a boom period. This is because when aging transformers are replaced or new transformers are installed, cables must be connected to transmit power at reduced voltage."

Daewon Electric Wire & Cable's major customers include Korea Electric Power Corporation (KEPCO), KT, Kia, and Hyundai Motor Company. It supplies power cables to KEPCO and wires used inside mobility products to Hyundai Motor Company and Kia. The combined share of KEPCO and KT accounts for about 15% of total sales.