Gaon Cable is rising early after news that it is expanding its push into the U.S. power infrastructure market and deciding on a bonus issue.
As of 10:07 a.m. on the 18th, Gaon Cable was trading on the main board at 398,500 won, up 57,500 won (16.86%) from the previous session.
Gaon Cable said it supplied transmission cables for a power grid project at a U.S. solar power complex that day. With expansions of artificial intelligence (AI) data centers continuing in the United States, demand for power grid investment is growing, and the expected benefits appear to have lifted the stock.
The market is focusing on Gaon Cable's expansion in the United States. Following solar power complexes, the company is also increasing supplies of cables for AI data center power grids, and it expects U.S. revenue to grow sharply from last year.
Winning a data center power infrastructure project with global big tech corporations also boosted investor sentiment. According to the industry, Gaon Cable's U.S. subsidiary LSCUS recently secured a busduct supply contract. Busduct, a distribution facility that supplies large-scale power stably, is considered one of the core infrastructures for AI data centers.
The decision on a bonus issue is also acting as a positive. Gaon Cable recently held a board meeting and decided on a bonus issue allotting 0.8 share per common share. The company said it pursued the bonus issue to enhance shareholder value.