DAISHIN SECURITIES evaluated on the 26th that LG Uplus has recorded the highest wireless growth rate among the three major domestic telecommunications companies. Following a strong performance in the first quarter of this year, there are expectations that operating profit will reach 1 trillion won for the first time in three years. The target stock price is 17,000 won, and the investment opinion is maintained as "buy."
Kim Hoi-jae, a researcher at DAISHIN SECURITIES, noted, "Due to depreciation burden from 2023 to 2024, there was negative growth, but starting this year, growth exceeding the depreciation burden is expected." He analyzed that an average annual increase of 9% in operating profit is projected from this year until 2029.
LG Uplus's wireless growth rate from 2020 to 2025 is projected to be 3.4%, surpassing KT's 2.2% and SK Telecom's 1.9%. This year, a wireless growth rate of 2.2% is also expected, which will exceed KT and SK Telecom's projections of 1.5% and -1.9%, respectively.
Revenue from data centers (DC) is expected to increase by an average of 30% annually until 2029. An artificial intelligence (AI) data center is being constructed, aiming for completion in 2027, with expected annual revenue of 100 billion won. The currently secured land area is sufficient to build eight centers.
The shareholder return policy is also on track. It is scheduled to burn all of its 6.78 million shares held in June. This amounts to 1.6% of the market capitalization, with a total price of 85.3 billion won. After August, additional stock buybacks and cancellations valued at up to 100 billion won are anticipated.
Researcher Kim stated, "The current stock price is taking a brief pause after reaching a peak over the past year," and evaluated that "the price-to-earnings ratio (PER) is at a level of 8 times, which still represents an attractive valuation."