[Click eStock] "SK Telecom, Buying in Q3 Is Late... Attractive Entry Point"

[Asia Economy Reporter Oh Ju-yeon] Hana Financial Investment emphasized that SK Telecom's stock price is likely to rise from July this year, making the current period an attractive buying opportunity. The current market has priced SK Telecom's stock low due to expectations that its performance will improve only by the third quarter, they evaluated.

Kim Hong-sik, a researcher at Hana Financial Investment, analyzed, "Although the second-quarter performance is not good, the average revenue per user (ARPU) for mobile phone subscribers continues to show an upward trend, indicating solid performance content-wise, which is expected to raise long-term profit growth expectations. Additionally, with the board announcing an interim dividend, there is a high possibility that the total shareholder return, including this year's total dividends and share buybacks, will be shared with investors."

He explained that in July, an increase in shareholder return scale and high expected dividend yield, and in August, expectations of a shift to a long-term profit growth trend in the second half of the year will drive SK Telecom's stock price upward.

Researcher Kim stated, "It is especially important to note that at this point, a multiple expansion phase may appear after the second half of the year."

He added that with expectations that mobile phone ARPU will follow a long-term upward curve, the evolution to 5G is likely to become a hot topic in the market, and the regulatory environment is also at its best ever.

Kim analyzed, "Following the passage of the Netflix regulation bill, the strengthening of telecom network dominance has become clear, and with Japan's Ministry of Internal Affairs and Communications pushing for the introduction of 5G express lanes, there is a high possibility of a sudden introduction of 5G express lanes domestically, which is a major positive factor."

He also emphasized that eight years ago, when LTE was introduced, SK Telecom's price-to-earnings ratio (PER) rose to as high as 17 times, stating, "Although true 5G services have not yet started and the market does not feel a significant differentiation, 5G in the IoT era will undoubtedly open a new business area with a different dimension of service," and added, "From now on, it is necessary to gradually pay attention to the multiple expansion phase of telecom stocks."

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