Brokerage : iM Securities
Analyst : Hee-chul Shin
Investment Rating : Buy (Maintained)
Target Price : KRW 70,000 (Maintained)
Core Momentum : Profitability defense driven by operating cost optimization, anticipated wireless revenue recovery post-promotional programs, and mid- to long-term infrastructure scaling targeting 1GW AIDC and 90Tbps submarine cables by 2030
📊 1. [Valuation & Key Financial Metrics]
- Rating & Target Price: Buy (Maintained) / KRW 70,000 (Maintained)
- Key Valuation Multiples (2026E):
- PER: 9.4x
- PBR: 0.7x
- EV/EBITDA: 3.0x
- BPS: KRW 73,304
- ROE: 7.8%
- Dividend Yield: 4.6%
- Consolidated Financial Highlights & Forecasts (K-IFRS):
- 2025: Revenue KRW 28.24T, Operating Profit KRW 2.47T, Net Profit KRW 1.73T, EPS KRW 6,869
- 2026E (Forecast): Revenue KRW 27.07T, Operating Profit KRW 2.05T, Net Profit KRW 1.41T, EPS KRW 5,579
- 2027E (Forecast): Revenue KRW 27.75T, Operating Profit KRW 2.23T, Net Profit KRW 1.57T, EPS KRW 6,238
- 2028E (Forecast): Revenue KRW 28.40T, Operating Profit KRW 2.27T, Net Profit KRW 1.64T, EPS KRW 6,523
🚀 2. [Market Opportunities & Business Outlook]
- Q2 Earnings Review & Segment Trends:
- Consolidated Q2 revenue reached KRW 6.68T (-10.1% YoY, -1.5% QoQ) and operating profit stood at KRW 648.3B (-36.1% YoY, +34.3% QoQ), beating market consensus by +7.4% despite high base effects from prior real estate development sales.
- Operating expenses declined to KRW 6.03T (-5.9% YoY, -4.2% QoQ), supporting an operating profit margin of 9.7%. Depreciation expenses decreased to KRW 941.0B (-3.6% YoY) following the completion of early 5G infrastructure amortization, while handset purchase costs dropped sharply to KRW 795.8B (-38.0% YoY).
- Wireless revenue was KRW 1.75T (-1.8% YoY) due to an ARPU dip (KRW 34,412, -2.3% YoY) from customer compensation programs; top-line recovery is expected in Q3 as the programs conclude.
- Among key subsidiaries, kt cloud recorded revenue of KRW 265.4B (+19.8% YoY) driven by rising utilization at the Gasan AIDC, while kt estate posted revenue of KRW 288.9B (+80.1% YoY) on full-scale recognition of Daejeon Dunsan development sales.
- Long-Term Infrastructure Strategy & Targets:
- KT unveiled plans to secure an additional 1GW in AIDC capacity and approximately 90Tbps in submarine cable capacity by 2030.
- Revenue targets for 2030 were set at KRW 4.4T for the AIDC division (vs. KRW 0.7T in 2026E) and KRW 0.4T for submarine cables (vs. KRW 0.2T in 2026E).
- Five-year CAPEX is estimated at KRW 5.0T, comprising approximately KRW 1.5T for physical AIDC construction and KRW 3.5T for leased data center capacity and submarine cable rollouts.
📝 Editor’s Comment (Perspective)
The analyst views KT as an enterprise establishing an operating profit defense through structural cost rationalization—such as reduced depreciation and handset costs—while preparing for wireless operational normalization and mid- to long-term digital infrastructure expansion centered on AIDC and submarine network assets. This perspective prioritizes core margin defense through cost discipline and the long-term execution of the 2030 infrastructure expansion blueprint (1GW AIDC and 90Tbps submarine capacity) over transient base effects from past real estate recognition or temporary wireless ARPU softness.
To verify whether this investment thesis unfolds as anticipated, key monitoring points include whether wireless ARPU and mobile service revenue achieve a tangible rebound starting in Q3 following the end of customer compensation programs, and whether the planned KRW 5.0T capital expenditures across AIDC and submarine cables convert into actual data center capacity utilization in line with the KRW 4.4T AIDC revenue target for 2030. Relevant developments can be tracked through upcoming quarterly earnings releases, official IR presentations, and periodic corporate filings.
📢 Disclaimer & Source
Source: This content has been structured and newly written based on officially disclosed financial facts and data from brokerage reports.
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