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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Minyoung] On the 24th, Hana Securities advised that it is appropriate to buy KT stock at this time, despite its poor performance.
Hana Securities stated, "Assuming there are no one-time gains, considering the flow of mobile phone sales and general expenses such as labor costs, there is a high possibility of a decline in operating profit in 2024. The second-quarter operating profit for the headquarters is expected to decrease by 3% year-on-year to 397.2 billion KRW. Given the lack of earnings momentum, it is unlikely that we will see a phase of multiple expansions."
Hana Securities projected that KT's real estate sales profit in 2025 will be 500 billion KRW. With these funds, it is likely that KT will engage in stock buybacks and cancellations or special dividends of over 200 billion KRW annually in 2025-2026. Considering the existing dividend of 500 billion KRW, the total annual shareholder return is expected to exceed 700 billion KRW. They anticipate a consensus that the current stock price is undervalued.
Hana Securities noted, "Considering the timing of the upcoming domestic frequency auction, KT is likely to invest in new 5G frequencies and introduce new pricing plans in 2025. Additionally, the expected profits from apartment sales by its real estate subsidiary will likely lead to increased dividend inflows. This will heighten expectations not only for long-term profit growth but also for dividend increases. Given the current situation with the foreign investment limit, a special dividend might also be considered."
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
