Brokerage : Hana Securities
Analyst : Kim Hong-sik, Sang-hoon Lee (RA)
Investment Rating : BUY (Maintained)
Target Price : KRW 76,000 (Maintained)
Core Momentum : Medium- to long-term recovery supported by regulatory improvements, attractive valuation, and long-term earnings optimism for 2027–2028, despite near-term standalone operational weakness and capped DPS growth
📊 1. [Valuation & Key Financial Metrics]
- Rating & Target Price: BUY (Maintained) / KRW 76,000 (Maintained)
- Key Valuation Multiples (2026F):
- PER: 9.64x
- PBR: 0.71x
- EV/EBITDA: 3.80x
- BPS: KRW 76,516
- ROE: 7.77%
- Expected DPS: KRW 2,400
- Consolidated Financial Highlights & Forecasts (K-IFRS):
- 2024: Revenue KRW 26.43T, Operating Profit KRW 809.5B, Net Profit KRW 470.3B, EPS KRW 1,850
- 2025: Revenue KRW 28.24T, Operating Profit KRW 2.47T, Net Profit KRW 1.73T, EPS KRW 6,869
- 2026F (Forecast): Revenue KRW 28.48T, Operating Profit KRW 1.97T, Net Profit KRW 1.42T, EPS KRW 5,623
- 2027F (Forecast): Revenue KRW 29.50T, Operating Profit KRW 2.08T, Net Profit KRW 1.52T, EPS KRW 6,014
🚀 2. [Market Opportunities & Business Outlook]
- 2Q26 Earnings Preview & Standalone Headwinds:
- Consolidated Q2 operating profit is expected to reach KRW 562.0B (-45% YoY, +16% QoQ), missing market consensus (KRW 609.0B).
- While subsidiaries like KT Estate and kt cloud are expected to sustain solid operational momentum, standalone performance is projected to remain subdued.
- Standalone Q2 operating profit is estimated at KRW 382.0B (-18% YoY, +22% QoQ), pressured by mobile service revenue declines from 5G subscriber churn, rising labor/overhead costs, and a high base effect in real estate development earnings.
- Dividend Capacity & Medium- to Long-Term Outlook:
- Full-year 2026 standalone net profit is projected around KRW 1.0T, with DPS expected to remain flat at KRW 2,400 (total dividend of KRW 600.0B, payout ratio ~60%).
- Under the company’s shareholder return policy (allocating 50% of adjusted standalone net profit to dividends and share cancellations over 2026–2028), meaningful DPS growth appears unlikely through 2027 due to 5G penetration saturation and cost pressures.
- Although short-term share price catalysts remain scarce, an improving regulatory backdrop, attractive valuation levels, and long-term earnings growth potential for 2027–2028 underpin the medium-term investment case.
📝 Editor’s Comment (Perspective)
The analyst views KT as an enterprise experiencing near-term earnings moderation and constrained dividend growth on standalone mobile softness, while positioning for a structural turnaround over 2027–2028 supported by easing regulatory pressures and strong valuation support. This perspective emphasizes ongoing subsidiary profit contributions and long-term fundamental recovery over transient quarterly consensus misses and flat DPS expectations.
To verify whether this investment thesis unfolds as anticipated, key monitoring points include whether standalone 5G subscriber churn stabilizes to stem mobile service revenue declines, whether standalone net profit supports the maintenance of the minimum KRW 2,400 DPS through 2027, and how improvements in the telecom regulatory environment translate into earnings recovery visibility from 2027 onward. Relevant updates can be verified through future quarterly earnings releases, official IR presentations, corporate filings, and periodic dividend declarations.
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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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