[Click e-Stock] "SKT, Stable Performance and Excellent Dividends... Target Price Maintained"

Strong First Half Performance and Enhanced Dividend Yield
Positive Impact of SK Group's Governance Restructuring

Hana Securities analyzed on the 28th that SK Telecom has a high potential for stock price increase due to strong earnings and dividend yield. They maintained a 'Buy' investment rating and a target price of 70,000 KRW. SK Telecom's closing price on the previous trading day was 56,100 KRW.

Researchers Hong-sik Kim and Yeon-su Ko of Hana Securities stated, "SK Telecom is recommended as the top stock in the telecommunications service sector for both 12 months and September," adding, "Although the operating profit outlook for the three major telecom companies remains uncertain, SK Telecom is expected to maintain stable earnings growth in 2024."

SK Telecom's first half performance was much better than initially feared. The consolidated operating profit for the second quarter was 540 billion KRW, exceeding the consensus (market average forecast). This shows that SK Telecom is the only one among the three major telecom companies expected to maintain a profit growth phase in 2024 following 2023. Additionally, the expected dividend yield is high, and the possibility of dividend reduction is low depending on the improvement in subsidiary performance.

The two researchers said, "SK Telecom's stock price is likely to be positively influenced by the potential restructuring of SK Group's governance in the future," and added, "With dividend resources converting to consolidated net profit from 2024 to 2026, stable dividend payments are expected."

Despite recent expectations of interest rate cuts, concerns about economic slowdown are increasing, and stable profit growth along with a high shareholder return ratio is analyzed to have a positive impact on SK Telecom's stock price.

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