Market: KOSPI (017670)
Brokerage : Daishin Securities
Analyst : Hoe-jae Kim
Investment Rating : BUY (Maintained)
Target Price : KRW 110,000 (Maintained)
Core Momentum : With 2Q26 results confirming core profit recovery and SK Broadband achieving record quarterly operating profit to support full-year operating profit of KRW 2.1 Trillion, the launch of SK Hyper to deploy an AIDC capacity of up to 5GW in phases starting in 2029 accelerates structural valuation re-rating.
📊 1. [Valuation & Key Financial Metrics]
- Rating & Target Price: BUY (Maintained), 6-Month Target Price KRW 110,000 (Maintained).
- Valuation Methodology: Derived by applying a Target P/E of 13.0x to 2026E EPS of KRW 7,418, plus KRW 3.6 Trillion in Anthropic equity value (based on a $96.5 Billion Series H valuation and ~0.25% equity stake). The 13.0x P/E multiple represents a 30% premium over the 5-year average telco multiple (10.0x for KT and LGU+).
- Financial Estimates (Daishin Research Center Revised Figures):
- 2024A: Revenue KRW 17.94 Trillion, Operating Profit KRW 1.82 Trillion, Pre-tax Profit KRW 1.76 Trillion, Controlling Net Profit KRW 1.25 Trillion, EPS KRW 5,810, ROE 10.8%, P/E 9.6x, P/B 1.0x.
- 2025A: Revenue KRW 17.01 Trillion, Operating Profit KRW 1.07 Trillion, Pre-tax Profit KRW 722.0 Billion, Controlling Net Profit KRW 408.0 Billion, EPS KRW 1,901, ROE 3.3%, P/E 28.1x, P/B 0.9x.
- 2026F: Revenue KRW 17.65 Trillion (+3.7% YoY), Operating Profit KRW 2.12 Trillion (+97.5% YoY, OPM 12.0%), Pre-tax Profit KRW 2.04 Trillion, Controlling Net Profit KRW 1.59 Trillion, EPS KRW 7,418, ROE 11.6%, P/E 12.3x, P/B 1.4x, Expected DPS KRW 3,320 (eligible for tax-free treatment starting in 4Q26).
- 2027F: Revenue KRW 18.02 Trillion (+2.1% YoY), Operating Profit KRW 2.10 Trillion (+1.1% YoY, OPM 11.6%), Pre-tax Profit KRW 2.01 Trillion, Controlling Net Profit KRW 1.55 Trillion, EPS KRW 7,219, ROE 10.7%, P/E 12.7x, P/B 1.3x.
- 2028F: Revenue KRW 18.40 Trillion, Operating Profit KRW 2.24 Trillion, Pre-tax Profit KRW 2.17 Trillion, Controlling Net Profit KRW 1.65 Trillion, EPS KRW 7,669, ROE 10.7%, P/E 11.9x, P/B 1.3x.
🚀 2. [Market Opportunities & Business Outlook]
- 2Q26 Earnings Review:
- Consolidated Revenue reached KRW 4.36 Trillion (+0.5% YoY, -0.8% QoQ) and Operating Profit recorded KRW 566.0 Billion (+67.3% YoY, +5.3% QoQ, OPM 13.0%), beating market consensus of KRW 546.0 Billion.
- SKT Standalone: Operating Profit reached KRW 427.7 Billion (+70.5% YoY). Following the ~700k subscriber net loss from the 2025 cyber breach, ~210k subscribers net returned in 1H26. Mobile service revenue posted KRW 2.6 Trillion (-2% YoY) and wireless ARPU was KRW 29,000 (+0.1% YoY). Full-year 2026 wireless revenue is projected to rebound to KRW 10.3 Trillion (+4% YoY).
- Cost Stabilization: Marketing expenses were KRW 750.0 Billion (+3% YoY, +1% QoQ), representing 24.0% of revenue (below the post-5G average of 24.8%). Depreciation stood at KRW 560.0 Billion (-2% YoY), remaining below the post-5G historical average of 20.3% of revenue, returning overall core profitability to 2024 baselines.
- SK Broadband: Marked its third quarter with operating profit surpassing KRW 100 Billion, delivering an all-time quarterly high Operating Profit of KRW 132.5 Billion (+44.2% YoY, OPM 11.4%). Full-year 2026 data center revenue is projected at KRW 560.0 Billion (+44% YoY), with 2030 data center revenue (incorporating the Ulsan facility) expected to reach KRW 1.4 Trillion (29% CAGR).
- 2026 Annual Outlook & Segment Performance:
- Consolidated Revenue projected at KRW 17.6 Trillion (+3% YoY) and Operating Profit at KRW 2.1 Trillion (+97% YoY), surpassing 2024 levels.
- 2026E SKT Standalone Operating Profit projected at KRW 1.6 Trillion (+96% YoY) and SK Broadband Operating Profit at KRW 510.0 Billion (+76% YoY).
- Establishment of SK Hyper & Mega AIDC Roadmap:
- Established dedicated entity ‘SK Hyper’ to manage an AIDC capacity of up to 5GW to be opened in phases starting in 2029.
- Initial equity capital set at KRW 750.0 Billion, with flexible follow-on investments based on project milestones.
- Strategic operation framework: 1) Protecting the shareholder return policy, 2) Anchoring development on verified enterprise demand, and 3) Minimizing development risks while maximizing returns through external capital partnerships.
📝 Editor’s Comment (Perspective)
The analyst characterizes SK Telecom as a premier telecommunications provider that has fully normalized its core operating profitability back to pre-breach levels, driven by wireless subscriber net additions, disciplined 5G depreciation/marketing expenses, and accelerated data center expansion at SK Broadband—paving the way for KRW 2.1 Trillion in full-year 2026 operating profit. The core perspective emphasizes that robust core cash flow generation and the upcoming 4Q tax-free dividend framework, combined with SK Hyper’s phased expansion of up to 5GW AIDC starting in 2029 and Anthropic equity value (KRW 3.6 Trillion), provide powerful dual drivers for long-term valuation re-rating.
To verify whether this investment thesis unfolds as anticipated, key tracking points include the sustained recovery of wireless subscribers leading to full-year wireless revenue of KRW 10.3 Trillion and consolidated operating profit of KRW 2.1 Trillion, SK Broadband’s execution toward KRW 560.0 Billion in 2026 data center revenue, the finalized payout terms of the 4Q26 tax-free dividend (2026E DPS KRW 3,320), and tangible project milestones regarding external capital attraction and land/power procurement for SK Hyper’s phased 5GW AIDC deployment starting in 2029. These developments can be monitored through SK Telecom’s quarterly earnings releases, official regulatory disclosures, and notes to periodic financial statements.
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