[Click eStock] "SK Telecom Has Many Positive Factors"

Hi Investment & Securities Recommends 'Buy' with Target Price of 310,000 KRW... Closing Price on 6th at 241,000 KRW

[Asia Economy Reporter Kum Boryeong] An analysis has emerged highlighting many positive factors for SK Telecom.

According to Hi Investment & Securities on the 7th, SK Telecom's consolidated operating profit for the third quarter is estimated at 361.5 billion KRW, representing a 19.7% increase year-on-year and a 0.6% increase quarter-on-quarter.

Lee Seung-woong, a researcher at Hi Investment & Securities, analyzed, "The main reasons for the strong performance are the continued growth in mobile phone revenue (2.5 trillion KRW) driven by the increase in 5G subscribers, the full reflection of the positive effects from the merger with T-broad, and the ongoing easing of competition to attract 5G subscribers."

Along with the strong performance, the researcher believes there are many positive factors for stock price appreciation. He explained, "Considering the interim dividend linked to SK Hynix (1,000 KRW + α) and the expected year-end dividend (9,000 KRW) linked to separate earnings, the dividend per share (DPS) is expected to be at least 10,000 KRW this year. Furthermore, if dividend capacity is secured after subsidiary IPOs, there is a high possibility of dividend expansion next year. Since September, a 500 billion KRW share buyback has been underway. Based on past cases, it was completed within three months, so it is judged that share buybacks will likely be concentrated in October and November."

Recently, One Store has completed the selection of underwriters. The IPO is expected to be completed in the second half of next year. The researcher said, "Following this, subsidiaries such as ADT Caps, 11st, WAVVE, and SK Broadband are also expected to pursue listings, so the value of SK Telecom's equity holdings is expected to be highlighted with the full-scale subsidiary IPOs."

Hi Investment & Securities has given SK Telecom a 'Buy' rating with a target price of 310,000 KRW, up from the previous 275,000 KRW. The closing price on the 6th was 241,000 KRW.

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