Market: KOSPI (017670)
Brokerage : Mirae Asset Securities
Analyst : Yoo-jin Choi, Nami Kim
Investment Rating : BUY (Maintain)
Target Price : KRW 120,000 (Upgraded)
Core Momentum : Earnings and dividend normalization driven by handset net additions and cost discipline, coupled with margin expansion across the AI full-stack (infrastructure, models, and services).
📊 1. [Valuation & Key Financial Metrics]
- Investment Rating & Target Price: BUY maintained, Target Price upgraded by 22% to KRW 120,000 (from KRW 98,000; 28.8% upside potential from the May 7, 2026 closing price of KRW 93,200), Sector Top Pick maintained
- Target Price Valuation Breakdown (SOTP):
- Core Operating Value: KRW 22.3 Trillion (Applying a Target P/E of 13.5x—a 30% premium to the past 3-year average P/E—to 2027–2028 average EPS of KRW 7,772, with 213 million shares outstanding)
- Anthropic Stake Value: KRW 3.2 Trillion (Assuming enterprise valuation of $380 Billion, 0.58% equity stake, USD/KRW FX rate of 1,461)
- Total Target Equity Value: KRW 25.5 Trillion, yielding a fair value per share of KRW 120,412 (Target Price set at KRW 120,000)
- 1Q26 Results Summary:
- Consolidated Revenue: ~KRW 4.4 Trillion (-1.4% YoY)
- Consolidated Operating Profit: KRW 537.6 Billion (-5.3% YoY, meeting consensus)
- SK Broadband Revenue: KRW 1.1 Trillion (+3.2% YoY), Operating Profit: KRW 116.6 Billion (+21.4% YoY)
- AI Data Center Revenue: KRW 131.4 Billion (+89.3% YoY)
- FY2026 Full-Year Forecast:
- Annual Revenue: ~KRW 18.0 Trillion (+5.1% YoY, KRW 17.973 Trillion in table)
- Annual Operating Profit: ~KRW 1.9 Trillion (+81.5% YoY, KRW 1.948 Trillion in table, OPM 10.8%)
- Annual Net Profit (Controlling Interests): KRW 1.363 Trillion
- 2026E EPS: KRW 6,347 / BPS: KRW 63,470 / ROE: 10.2% / PER: 14.7x / PBR: 1.4x
- Dividends & Shareholder Returns:
- Quarterly dividend resumed with 1Q26 DPS payout of KRW 830
- Projected FY2026 annual DPS of KRW 3,540 (+113% YoY, ~3.8% dividend yield)
🚀 2. [Market Opportunities & Business Outlook]
- Core Operational Rebound & Cost Optimization:
- Handset subscribers turned to net positive additions (+208k), with total 5G subscribers reaching 17.8 million (+3.2% YoY, 81.1% penetration rate, 46.4% market share).
- Marketing expenses projected to remain contained at ~KRW 3.4 Trillion (+1.7% YoY) due to limited market competition.
- Depreciation expenses expected to decline as capital expenditure payback cycles mature.
- SK Broadband & AI DC Execution:
- Higher utilization across Gasan and Pangyo data centers and expanding GPUaaS revenue propelled strong operating profit growth.
- Monetization Across Korea’s Sole AI Full-Stack (Infrastructure, Models, Services):
- Construction of a ~100MW hyperscale AI Data Center in Ulsan.
- Expansion anchored by national flagship AI models.
- Top-line growth acceleration driven by consumer AI services centered on A. (A-Dot).
📝 Editor’s Comment (Perspective)
The analyst views SK Telecom as an operator that has reinstated its baseline ~KRW 1.95 Trillion operating profit capability and quarterly dividend distribution through disciplined marketing and depreciation control, while distinguishing itself as Korea’s sole provider with an integrated ‘AI Full-Stack’ (spanning infrastructure, models, and consumer services) alongside substantial equity value in Anthropic. This perspective relies on core operational cash flow normalization as downside valuation support, while treating structural margin expansion from AI infrastructure and services as the primary driver for target price re-rating.
To evaluate whether this investment thesis materializes, key verification points include confirming that SG&A and depreciation controls deliver the ~KRW 1.9 Trillion operating profit and KRW 3,540 DPS target, tracking utilization ramp-ups and GPUaaS revenue growth at SK Broadband’s data centers, and monitoring tangible execution milestones in the 100MW Ulsan hyperscale DC project along with revenue monetization from A. (A-Dot) AI services. These developments can be verified via upcoming quarterly earnings releases, official IR presentations, and periodic DART statutory filings.
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Source: This content has been structured and newly written based on officially disclosed financial facts and data from brokerage reports.
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