Daehan Photomorph is drawing investors' attention ahead of the new trading week. Having posted double-digit declines for two consecutive days during the broader correction phase of optical communication stocks late last month, volatility has intensified. Whether this trend will continue in actual trading early this week or a reversal will emerge is a key focus of interest.

Monday's trading is highly likely to reflect multiple variables simultaneously, beyond simple supply and demand dynamics. This is because expectations for interest rate cuts—triggered by the slowdown in U.S. employment indicators—are converging with news of the company's expanded supply of optical cables to U.S. AI data centers.

Weak U.S. Employment Lowers Odds of September Rate Cut

The U.S. Bureau of Labor Statistics announced on the 7th (local time) that nonfarm payrolls decreased by 23,000 in July compared to the previous month. This is the exact opposite of the market expectation of an 83,000 increase. The unemployment rate fell to 4.1%, influenced by a decline in the labor force participation rate, and employment gains for May and June were also revised downward by 103,000 from market forecasts.

With employment indicators deteriorating significantly more than expected, assessments suggest that the likelihood of the Federal Reserve raising the benchmark rate further in September has actually diminished. While such a trend is typically interpreted as favorable for growth stock and infrastructure investment themes, it remains to be seen whether the Korean stock market will fully reflect this in Monday's opening.

Ultra-High-Density 864-Core Optical Cable Expands Supply to U.S. Hyperscale Data Centers

Against this macroeconomic backdrop, U.S. AI data center investment continues to be identified as a theme still in an expansionary phase. As data processing volumes between GPUs and servers increase, the demand for ultra-high-density optical cables—capable of accommodating more lines in limited space—is growing in tandem. Daehan Photomorph is cited as a leading domestic example riding this trend.

Daehan Photomorph has been steadily expanding the scale of its supply of 864-core optical cables to U.S. hyperscale AI data centers. Following the first supply agreement signed on February 20 with a U.S. global AI and extended reality (XR) platform company, the company secured an additional second contract on June 16 that is approximately 6.3 times larger than the first.

The 864-core optical cable is an ultra-high-density product containing 864 optical fibers in a single strand. Compared to existing 144-core and 288-core products, it allows more lines to be deployed in the same space, making it primarily used for internal networks within large-scale data centers and for inter-data center connections.

The second batch will be supplied through TFO America, the company's local U.S. subsidiary, and the products will be entirely manufactured at domestic production bases. The delivery period spans a long timeframe from July 2026 to the end of 2027, meaning the contract amount will not be recognized as revenue all at once in a specific quarter.

Still in the Red... Improvement Trend in Q1 2026 Earnings

On the earnings front, it is worth noting that the company remains in a deficit. On a consolidated basis per electronic disclosure, 2025 revenue fell 8.6% year-over-year, with operating losses and net losses continuing.

However, in the first quarter of 2026, consolidated revenue rose 34.9% year-over-year, while operating loss and net loss narrowed by 42.8% and 47.8%, respectively, showing an improving trend. It should be noted that operating income and net income have not yet turned to profitability.

[※ This article is intended for informational purposes only, and investment decisions and their consequences are the sole responsibility of the investor. As matters related to specific stocks and companies are highly volatile and fluid, please verify through the latest disclosures and multiple sources before making investment decisions. This is an AI-assisted article.]