As the expansion of North American AI data centers coincides with the U.S. BEAD (Broadband Equity, Access, and Deployment) broadband deployment program, Korean optical fiber and cable companies are increasingly making inroads into the North American supply chain.

The U.S. BEAD program requires local production eligibility under its 'Buy America' provisions. Participation is restricted for companies that simply export products manufactured in Korea.

Amid these developments, Daehan Optical Communication has secured a local production base. The company announced on May 6 that it completed the acquisition of Incab America LLC, a fiber optic cable manufacturer based in Texas, USA, through its 100%-owned subsidiary TFONE Networks. After receiving approval from the U.S. Committee on Foreign Investment in the United States (CFIUS), the company acquired an additional 1.5% stake on top of its existing 88.5%, bringing its final ownership to 90%. The company explained that this acquisition has established a local production base to respond to North American demand for power and communications infrastructure.

■ Trend of Earnings Improvement Continues, Turning to Profit Remains a Challenge

Daehan Optical Communication's consolidated revenue for the first quarter of 2026 increased 34.9% year-over-year. Operating loss and net loss narrowed by 42.8% and 47.8%, respectively. However, the company has yet to turn to a profit.

■ Stock Price Falls 23.51% in Two Days... Profit-Taking Volume Emerges

Daehan Optical Communication's stock price fell 23.51% over two days, dropping from a closing price of 9,740 won on the 27th to 7,450 won on the 29th. This is interpreted as profit-taking volume being released following a sharp short-term surge.

■ Key Points to Watch Going Forward

There are three key points to watch going forward: ▲ the timing of when the incorporation of Incab America translates into actual sales and orders, ▲ whether the company makes disclosures regarding orders related to the U.S. BEAD program, and ▲ whether the trend of narrowing losses in the second quarter leads to a turn to profitability.

[This article was written with the assistance of AI. This article is investment reference information based on publicly available market materials and does not recommend the purchase or sale of any specific stock. Investment decisions and the responsibility thereof rest solely with the investor.]