Hana Securities noted on the 21st that it presents KT as the most preferred stock in the telecommunications service sector for the second half of this year. The expectation of excellent performance in the second to fourth quarters of this year and the potential for a fare revision next year, along with a high shareholder revenue return rate, are the reasons. The target stock price is 70,000 won, maintaining an investment opinion of 'buy.'
Researcher Kim Hong-sik at Hana Securities analyzed, "KT, which recorded good performance in the first quarter, is expected to achieve improved results in the second to fourth quarters compared to the same period last year," and noted, "The reasons for the significant performance improvement include reduced labor costs at the headquarters and recognized gains from apartment sales in the consolidation. In particular, a one-time profit is expected in the second quarter, and a significant performance improvement is anticipated in the fourth quarter due to the base effect from last year’s early retirement payments."
Hana Securities focused on KT management's willingness to boost the stock price. The quarterly dividends have been increased from 500 won last year to 600 won in the first quarter of this year, and there are expectations for an increase to 700 won in the second or third quarter. If dividends are raised to 700 won, the stock price is expected to have potential to rise to 70,000 won.
With the additional 5G frequency auction opening this fall, there are also expectations for a new fare revision by the end of the year.
Researcher Kim noted, "If the rise in stock prices from 2024 to 2025 was due to organizational restructuring and expectations of value enhancement, thereafter, it is expected to be driven by fundamental expectations following the fare revision," and added, "Although profit growth may be challenging next year, stock price increases are likely to continue due to top-line growth expectations."