Market: KOSPI (017670)
Brokerage : Shinhan Securities
Analyst : Ah-ram Kim
Investment Rating : BUY (Maintained)
Target Price : KRW 112,000 (Upgraded)
Core Momentum : Following a 2Q26 earnings beat driven by record SK Broadband operating profit, target price is raised as pre-emptive multiple expansion reflects SK Hyper’s GW-scale AIDC pipeline and the potential upside from an October Anthropic listing.
📊 1. [Valuation & Key Financial Metrics]
- Rating & Target Price: BUY (Maintained), Target Price raised by 12.0% to KRW 112,000 (from KRW 100,000, Upside Potential 20.4%).
- Valuation Rationale: Target EV/EBITDA multiple raised from 4.4x to 4.8x (based on 2027E EV/EBITDA of 4.8x) to incorporate expectations for the data center business, medium-to-long term capacity targets (5GW + 10GW), and long-term customer contracts.
- Valuation Multiples: 2026F P/E 14.6x, P/B 1.5x, EV/EBITDA 5.0x, Dividend Yield 3.6% / 2027F P/E 14.1x, P/B 1.4x, EV/EBITDA 4.8x, Dividend Yield 3.6%.
- Financial Estimates:
- 2024A: Revenue KRW 17.94 Trillion, Operating Profit KRW 1.82 Trillion, Controlling Net Profit KRW 1.25 Trillion, EPS KRW 5,810, ROE 10.8%, P/E 9.5x, P/B 1.0x, EV/EBITDA 3.7x, Dividend Yield 6.4%.
- 2025A: Revenue KRW 17.10 Trillion, Operating Profit KRW 1.07 Trillion, Controlling Net Profit KRW 408.4 Billion, EPS KRW 1,901, ROE 3.3%, P/E 28.1x, P/B 0.9x, EV/EBITDA 4.4x, Dividend Yield 3.1%.
- 2026F: Revenue KRW 17.66 Trillion (+3.3% YoY), Operating Profit KRW 1.99 Trillion (+85.9% YoY), Controlling Net Profit KRW 1.36 Trillion (+234.0% YoY), EPS KRW 6,351, ROE 10.3%, P/E 14.6x, P/B 1.5x, EV/EBITDA 5.0x, Dividend Yield 3.6%.
- 2027F: Revenue KRW 17.88 Trillion (+1.3% YoY), Operating Profit KRW 2.12 Trillion (+6.2% YoY), Controlling Net Profit KRW 1.41 Trillion (+3.6% YoY), EPS KRW 6,578, ROE 10.2%, P/E 14.1x, P/B 1.4x, EV/EBITDA 4.8x, Dividend Yield 3.6%.
- 2028F: Revenue KRW 18.11 Trillion, Operating Profit KRW 2.17 Trillion, Controlling Net Profit KRW 1.44 Trillion, EPS KRW 6,724, ROE 9.9%, P/E 13.8x, P/B 1.3x, EV/EBITDA 4.5x, Dividend Yield 3.6%.
🚀 2. [Market Opportunities & Business Outlook]
- 2Q26 Earnings Review:
- Consolidated Operating Profit reached KRW 566.0 Billion (+67% YoY), beating market consensus by approximately 7%.
- SK Broadband: Drove consolidated outperformance with record-high quarterly Operating Profit of KRW 132.5 Billion (+44% YoY, OPM 11.4%). Data center revenue surged 92% YoY on the Pangyo facility consolidation, higher utilization across legacy centers, and contract renewals. Excluding prior-year security incident expenses (KRW 190.0 Billion), OPM recovered to 14.1%.
- SKT Standalone: Delivered a resilient OPM of 13.7% through disciplined, profitability-focused management despite subscriber churn.
- Establishment of SK Hyper & GW-Scale AIDC Roadmap:
- Incorporated dedicated subsidiary ‘SK Hyper’ on July 23 to lead full-scale execution of the 5GW data center roadmap.
- SK Hyper will oversee upstream infrastructure and project development, encompassing site procurement and substation operations.
- Management’s core principles—’build post-contract confirmation’ and ‘phased capacity openings starting in 2029’—indicate that concrete lease negotiations with global hyperscalers are actively underway.
- Transition to AI Growth & Valuation Re-rating:
- While multiples appear elevated strictly as a traditional dividend play (expected DY of 3.6%), the stock remains undervalued through the lens of an AI infrastructure growth asset.
- A potential Anthropic listing in October, as noted in the report, could provide additional upside for equity valuation realization.
📝 Editor’s Comment (Perspective)
The analyst views SK Telecom as a resilient market leader that beat 2Q market expectations behind record data center profitability at SK Broadband and strict operational cost discipline, while successfully pivoting its valuation narrative from a defensive dividend payer to an AI infrastructure growth platform. The core perspective prioritizes multiple expansion toward 4.8x EV/EBITDA driven by the establishment of SK Hyper to execute a massive 5GW AIDC pipeline alongside potential upside from an October Anthropic listing, over static yield-based valuation metrics.
To verify whether this investment thesis unfolds as anticipated, key tracking points include the execution of land and power infrastructure procurement under SK Hyper, the formal signing of long-term tenant contracts with global hyperscalers, whether an Anthropic listing materializes in October and how it affects the value of SK Telecom’s stake, and the achievement of full-year 2026 operating profit of KRW 1.99 Trillion. These milestones can be monitored through SK Telecom’s quarterly financial disclosures, IR presentations, periodic regulatory filings, and corporate disclosures regarding SK Hyper.
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