[Click eStock] "KT Meets Consensus in Q4 Last Year... Revaluation of Corporate Value and Expectation of Bottom Rebound"

[Asia Economy Reporter Oh Ju-yeon] Kiwoom Securities stated on the 7th that KT is expected to continue expanding its subscriber base this year due to the full-scale introduction of 5G devices, and a rebound from the bottom in terms of stock price is anticipated.

KT reported through a public disclosure the previous day that its Q4 operating revenue was 6.196 trillion KRW and operating profit was 148 billion KRW, in line with consensus estimates (operating revenue 6.1997 trillion KRW, operating profit 148.8 billion KRW).

Researcher Jang Min-jun from Kiwoom Securities analyzed, "This year, operating revenue is expected to be 24.747 trillion KRW and operating profit 1.355 trillion KRW." Although the wireless business may continue to be affected by membership sales discounts at 7.008 trillion KRW, it is expected to grow year-on-year in terms of average revenue per user (ARPU) due to the influx of 5G subscribers.

Researcher Jang said, "As of last year, 5G subscribers reached 1.42 million, accounting for 30.4% of the entire 5G market share," and added, "The media business, centered on IPTV, is rapidly reorganizing the paid broadcasting market, opening up the possibility of M&A with cable companies in the future."

He analyzed that leveraging the No. 1 market share in the paid broadcasting market, revenue growth beyond basic fees is also expected. In the real estate business, revenue growth is anticipated from the development in Gwangjin-gu and hotel business.

Researcher Jang diagnosed, "From 2020, subscriber expansion due to the full-scale introduction of 5G devices will continue," and "Considering that the company still remains in an undervalued range compared to its corporate value, its investment attractiveness is high." He added, "Market expectations remain regarding whether the new CEO will set a management direction that demonstrates the company's strength as a leader in both wired and wireless sectors," maintaining a 'Buy' investment opinion and a target stock price of 38,000 KRW.

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