Market: KOSPI (017670)
Brokerage : IBK Securities
Analyst : Tae-hyun Kim
Investment Rating : BUY (Maintain)
Target Price : KRW 107,000 (Upgraded)
Core Momentum : Resilient 1Q results backed by SK Broadband and Data Center growth, followed by full-scale base-effect-driven earnings acceleration and dividend normalization toward the FY2024 baseline from 2Q onward.
📊 1. [Valuation & Key Financial Metrics]
- Investment Rating & Target Price: BUY maintained, Target Price upgraded by 18.9% to KRW 107,000 (from KRW 90,000; based on the April 8, 2026 closing price of KRW 89,000)
- 1Q26 Earnings Forecast (Preview):
- Consolidated Revenue: KRW 4.437 Trillion (-0.4% YoY)
- Consolidated Operating Profit: KRW 534.0 Billion (-5.9% YoY, slightly beating consensus of KRW 4.402 Trillion / KRW 506.9 Billion)
- Standalone (SKT) Revenue: KRW 3.104 Trillion (-2.0% YoY), Standalone Operating Profit: KRW 425.3 Billion (-11.8% YoY)
- SK Broadband Revenue: KRW 1.151 Trillion (+3.3% YoY), SK Broadband Operating Profit: KRW 115.1 Billion (+19.9% YoY)
- FY2026 Full-Year Forecast:
- Annual Revenue: KRW 17.666 Trillion
- Annual Operating Profit: KRW 1.857 Trillion (OPM 10.5%, recovering to pre-incident baseline)
- Annual Net Profit (Controlling Interests): KRW 1.267 Trillion
- 2026E EPS: KRW 5,898 / ROE: 9.4% / PER: 13.8x / PBR: 1.3x / EV/EBITDA: 4.7x / 2026F Dividend Yield: 4.4%
- Dividends & Shareholder Returns:
- Annual DPS expected to normalize to the FY2024 baseline of KRW 3,540
🚀 2. [Market Opportunities & Business Outlook]
- Subscriber Trends & B2B/Data Center Execution:
- Number-portability handset subscribers increased by ~140,000 QoQ, benefiting from competitor fee waivers.
- Growth across broadband, IPTV, AI Data Centers (AIDC), and cloud services propelled B2B segment performance.
- Data center utilization reached 96.5% (+1.3%p QoQ), with segment revenue projected to exceed KRW 160.0 Billion.
- Accelerating Base Effects from 2Q Onward:
- 2Q25 base lowered by business suspensions, customer churn, and universal SIM card replacement costs.
- Additional 2H25 base effects from customer appreciation programs (fee discounts and membership perks).
- Conclusion of the temporary 50GB monthly data promotion (Aug–Dec 2025) normalizes tariff tiers, driving ARPU expansion and profit acceleration in 3Q–4Q26.
📝 Editor’s Comment (Perspective)
The analyst views SK Telecom as an operator successfully cushioning delayed wireless subscriber recovery through SK Broadband’s B2B and data center strength (96.5% utilization), while entering a pronounced profit acceleration cycle from 2Q onward as previous one-off costs (SIM replacements and appreciation packages) dissipate. This perspective anchors the target price upgrade to KRW 107,000 on clear sequential earnings recovery visibility and the dependable normalization of full-year operating profit (~KRW 1.85 Trillion) and DPS (KRW 3,540).
To evaluate whether this investment thesis materializes, key verification points include confirming that 1Q operating profit beats market consensus, verifying that base effects and tariff normalizations deliver the ~KRW 1.85 Trillion annual operating profit and KRW 3,540 DPS target, and tracking sustained high utilization in data centers alongside post-promotion ARPU trends. These developments can be verified via upcoming quarterly earnings announcements, official IR presentations, and periodic DART statutory filings.
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