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[Alpha Biz=(Chicago) Reporter Paul Lee] NH Investment & Securities said KT is expected to resolve stock price uncertainties as it announced that it will keep dividends at previous levels over the next three years.
On the 18th, NH Investment & Securities maintained its investment opinion 'buy' and target stock price of 44,000 won for KT.
"KT unveiled its shareholder return policy in 2023-2025," NH Investment & Securities said in a report. "We believe it will be able to eliminate noise in some markets that insist on reducing dividends, and in particular, we believe that the policy to maintain dividends per share in 2022 is confidence in future earnings growth."
NH Investment & Securities expects KT to perform below market expectations in the third quarter.
"KT's third-quarter sales will rise 5.4 percent year-on-year to 6.83 trillion won and operating profit will fall 24.2 percent to 343.1 billion won over the same period," said NH Investment & Securities. "Wireless sales will continue to grow, but it will temporarily cost about 100 billion won in labor costs."
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
