[Stock in Focus] "Benefiting from Both Rising Oil Prices and AI Demand"... TMC Up 20%

As demand for artificial intelligence (AI) and oil prices continue to rise, TMC, an industrial special cable manufacturer, is showing strong performance.

As of 9:28 a.m. on March 23, TMC's stock price was trading at 28,400 won, up 20.34% (4,800 won) from the previous trading day.

TMC has been on an upward trend for five consecutive trading days since March 17. Notably, the company posted significant gains on March 17 (29.98%) and March 20 (20.53%), with the stock price surging sharply.

This is largely due to rising oil prices caused by the Middle East conflict. Kim Seonbong and Seong Hyeondong, researchers at Daishin Securities, analyzed, "The increase in offshore plant orders driven by higher oil prices will boost TMC's marine cable revenue. Marine cables have higher margins compared to other types of cables, and TMC's operating margin tends to lag behind oil prices by one to two years, so the company is expected to benefit."

Rising AI demand is also a contributing factor. The researchers added, "TMC's North American optical cable sales are estimated to have jumped from 70 million won in 2022 to about 10 billion won last year. In response to this increased demand, TMC completed the construction of a new North American subsidiary plant in October last year and recently fulfilled its first order of 2 million dollars worth of products to Amphenol."

This content was produced with the assistance of AI translation services.