Market: KOSPI (017670)
Brokerage : iM Securities
Analyst : Hee-chul Shin
Investment Rating : Buy (Maintained)
Target Price : KRW 112,000 (Maintained)
Core Momentum : While cost efficiencies from the 5G harvest cycle and SK Broadband’s growth drive record-high quarterly and annual operating margins, the launch of SK Hyper marks full-scale entry into large-scale AIDC infrastructure development, catalyzing a valuation re-rating.
📊 1. [Valuation & Key Financial Metrics]
- Rating & Target Price: Buy (Maintained), Top Pick Maintained, Target Price KRW 112,000 (Maintained, Upside Potential 26.9%).
- Valuation Rationale: Calculated by applying a Target EV/EBITDA of 4.0x (the upper bound of past telecom profit improvement cycles) to 12-month forward EBITDA of approximately KRW 5.3 Trillion, plus KRW 4.2 Trillion in Anthropic equity value. Valuation factors reflect: 1) Dominant No. 1 market position in domestic wireless, and 2) High growth prospects in AIDC infrastructure following the launch of SK Hyper.
- Financial Estimates:
- 2025A: Revenue KRW 17.10 Trillion, Operating Profit KRW 1.07 Trillion, Net Profit KRW 433.0 Billion, EPS KRW 1,931, ROE 3.3%, P/E 38.1x, P/B 0.9x, EV/EBITDA 4.1x, Dividend Yield 3.8%.
- 2026E: Revenue KRW 17.63 Trillion (+3.1% YoY), Operating Profit KRW 1.89 Trillion (+76.4% YoY, OPM 10.7%), Net Profit KRW 1.20 Trillion, EPS KRW 5,212, ROE 8.6%, P/E 17.8x, P/B 1.5x, EV/EBITDA 5.1x, Dividend Yield 4.3%.
- 2027E: Revenue KRW 17.99 Trillion (+2.0% YoY), Operating Profit KRW 2.32 Trillion (+22.6% YoY, OPM 12.9%), Net Profit KRW 1.46 Trillion, EPS KRW 6,831, ROE 10.8%, P/E 13.6x, P/B 1.4x, EV/EBITDA 4.6x, Dividend Yield 4.8%.
- 2028E: Revenue KRW 18.34 Trillion, Operating Profit KRW 2.46 Trillion, Net Profit KRW 1.58 Trillion, EPS KRW 7,439, ROE 11.3%, P/E 12.5x, P/B 1.4x, EV/EBITDA 4.4x.
🚀 2. [Market Opportunities & Business Outlook]
- 2Q26 Earnings Review:
- Consolidated Revenue reached KRW 4.36 Trillion (-0.6% QoQ, +0.5% YoY) and Operating Profit was KRW 566.0 Billion (+5.3% QoQ, +67.3% YoY, OPM 13.0%). While revenue slightly missed consensus (-1.2%), operating profit beat consensus by ~3.7%, achieving an all-time high quarterly operating margin.
- SKT Standalone: Revenue of KRW 3.12 Trillion (+0.4% QoQ, -0.6% YoY) and Operating Profit of KRW 427.7 Billion (+4.4% QoQ, +70.5% YoY), reflecting low-base effects from the prior-year data breach and a rebound in wireless subscribers to 33.57 million (+0.5% YoY).
- SK Broadband: Revenue of KRW 1.16 Trillion (+0.9% QoQ, +3.6% YoY) and Operating Profit of KRW 132.5 Billion (+13.6% QoQ, +44.2% YoY, OPM 11.4%). AIDC business segment revenue surged to KRW 136.2 Billion (+3.7% QoQ, +92.6% YoY).
- Following the Pangyo IDC acquisition in 2H25, utilization is near 100%, which may cause a temporary moderation in short-term top-line growth until the completion of Ulsan Phase 1 AIDC (40MW) in 2H27.
- Structural Cost Reductions & Margin Expansion Cycle:
- Entering the 5G investment harvest phase with marketing and labor cost optimization underway.
- Concluding depreciation periods for initial 5G infrastructure investments will drive operating margins to historic highs (10.7% in 2026E, 12.9% in 2027E).
- Profitability was further supported by one-off political text messaging gains during the local elections and partial reversals of USIM replacement provisions recognized last year.
- Establishment of SK Hyper & Full-Scale AIDC Entry:
- Established new subsidiary ‘SK Hyper’ on July 23 to accelerate full-scale entry into the AI data center market.
- Competitive positioning backed by group synergies: SK Hynix (memory), SK Ecoplant (EPC), and Ulsan AIDC track record.
- SK Hyper will focus on early project development including land sourcing, power infrastructure, and securing long-term anchor tenants, while construction and operation will be executed via project-level SPCs (primary revenue from equity dividends and O&M fees).
- The establishment filing and upfront KRW 330.0 Billion equity commitment indicate that preliminary negotiations with potential anchor tenants are well advanced.
📝 Editor’s Comment (Perspective)
The analyst views SK Telecom as a premier telecom operator that has leveraged the end of initial 5G infrastructure depreciation cycles and disciplined cost controls to deliver record-high operational profitability, while establishing a powerful structural re-rating catalyst through the launch of SK Hyper to lead full-stack AIDC development. The core perspective emphasizes that despite potential near-term capacity ceilings ahead of new center openings, the company’s group-wide synergies and the long-term enterprise value of the SK Hyper project pipeline and Ulsan Phase 1 AIDC far outweigh transient capacity bottlenecks.
To evaluate whether this investment thesis unfolds as anticipated, key tracking points include whether the company achieves projected double-digit operating margins (10.7% in 2026E and 12.9% in 2027E) driven by lower 5G depreciation, the concrete execution of long-term tenant agreements and project SPC formations following SK Hyper’s KRW 330.0 Billion capitalization, and the on-schedule construction progress of the 40MW Ulsan Phase 1 AIDC slated for 2H27. These milestones can be monitored through SK Telecom’s quarterly financial releases, IR disclosures, periodic filings, and official corporate announcements regarding SK Hyper.
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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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