Market: KOSPI (017670)
Brokerage : IBK Securities
Analyst : Tae-hyun Kim
Investment Rating : BUY (Maintain)
Target Price : KRW 107,000 (Maintain)
Core Momentum : Resilient 1Q earnings supported by cost discipline and SK Broadband growth, paired with quarterly dividend resumption and clear earnings/dividend normalization ahead on strong base effects.
📊 1. [Valuation & Key Financial Metrics]
- Investment Rating & Target Price: BUY maintained, Target Price maintained at KRW 107,000 (Based on the closing price of KRW 93,200 on May 7, 2026)
- 1Q26 Results Summary:
- Consolidated Revenue: KRW 4.392 Trillion (-1.4% YoY)
- Consolidated Operating Profit: KRW 537.6 Billion (-5.3% YoY, beating market expectations by ~5%)
- Standalone (SKT) Revenue: KRW 3.106 Trillion (-1.9% YoY), Standalone Operating Profit: KRW 409.5 Billion (-15.1% YoY)
- SK Broadband Revenue: KRW 1.150 Trillion (+3.2% YoY), Operating Profit: KRW 116.6 Billion (+21.4% YoY)
- AI Data Center (AIDC) Revenue: KRW 131.4 Billion (+89.3% YoY)
- FY2026 Full-Year Forecast:
- Annual Revenue: KRW 17.622 Trillion
- Annual Operating Profit: KRW 1.861 Trillion (OPM 10.6%)
- Annual Net Profit (Controlling Interests): KRW 1.207 Trillion
- 2026E EPS: KRW 5,620 / BPS: KRW 62,319 / ROE: 9.1% / PER: 16.6x / PBR: 1.5x / EV/EBITDA: 5.2x
- Dividends & Shareholder Returns:
- Resumption of quarterly dividends (KRW 830 per share) which had been suspended since 2Q25
- FY2026 annual DPS projected to normalize to the FY2024 level of KRW 3,540 (Estimated dividend yield of ~3.8%)
🚀 2. [Market Opportunities & Business Outlook]
- Cost Optimization & Operational Metrics:
- Mobile handset subscribers increased by ~210,000 net additions (+1.0% QoQ), benefiting from competitor fee waiver policies.
- 5G penetration reached 81% (+5%p YoY, +1%p QoQ), maintaining the expansion of high-tier plans.
- Structural reductions in commissions (-4.0% YoY) and employee compensation (-5.3% YoY) supported margin stability against top-line pressures.
- SK Broadband & AIDC Segment Expansion:
- High-speed internet subscriber base reached 7.31 million (+1.3% YoY).
- AIDC revenue surged +89.3% YoY, propelled by rising utilization at the Gasan data center and consolidation benefits from the Pangyo data center.
- Construction of the Ulsan AI Data Center (targeted for 2027 operation) remains on track.
- Accelerating Base Effects from 2Q Onward:
- Strong YoY profit rebound anticipated in 2Q26 due to the low base from 2Q25 (business suspensions, subscriber churn, and company-wide SIM replacement costs).
- Continued dissipation of 2H25 customer appreciation costs (fee discounts and expanded membership perks) supports smooth profit recovery for the remainder of the year.
📝 Editor’s Comment (Perspective)
The analyst views SK Telecom as an operator that has successfully cushioned standalone top-line softness through disciplined commissions and payroll management while restarting quarterly dividends, entering a structural recovery cycle powered by SK Broadband’s surging AIDC business and favorable year-ago base effects. This perspective centers on high earnings recovery visibility and the dependable restoration of the historical KRW 3,540 annual DPS baseline throughout 2026.
To evaluate whether this investment thesis materializes, key verification points include tracking whether the dissipation of prior one-off costs translates into the projected FY2026 consolidated operating profit of KRW 1.86 Trillion, verifying the quarterly payout execution toward the full-year KRW 3,540 DPS target, and monitoring the ongoing construction milestones of the Ulsan AIDC facility toward its 2027 operational target alongside Gasan/Pangyo capacity utilization. These developments can be verified via upcoming quarterly earnings announcements, 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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