[Click eStock] "KT Holds No.1 Titles in Various Fields Including 5G Penetration Rate"

[Asia Economy Reporter Park Jihwan] Daishin Securities maintained its 'Buy' rating and a target price of 40,000 KRW for KT on the 24th, stating that KT is having its best year with various number one titles in areas such as 5G penetration rate.

Kim Hoejae, a researcher at Daishin Securities, stated, "KT ranks first in various fields including 5G penetration rate, wireless average revenue per user (ARPU), paid broadcasting market share, ultra-high-speed internet market share, number of IDC facilities, and dividend yield."

Specifically, KT holds the top spot with a 5G penetration rate of 31%, wireless ARPU of 32,000 KRW since Q1 2019, net increase in handset subscribers, an expected dividend per share (DPS) of 17,000 KRW in 2021, and a dividend yield of 5.5%, among others.

Additionally, benefits from KakaoBank's listing are also anticipated. K Bank, where BC Card holds a 34% stake as the largest shareholder, plans to double its initial capital increase plan of 600 billion KRW to 1.2 trillion KRW, fueled by explosive subscriber growth. After the capital increase, the capital will be 2.1 trillion KRW, slightly exceeding KakaoBank's 2 trillion KRW. Researcher Kim Hoejae said, "If KakaoBank goes public, K Bank's value could also be reflected in KT's corporate value."

The targets set last May are also being smoothly achieved. Researcher Kim emphasized, "On a separate basis, operating profit is expected to grow 35% in 2022 compared to 2019, net profit to grow 50%, and more than 50% of net profit excluding one-time items to be paid as dividends?all three are progressing smoothly."

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