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SK Telecom (photo = SK Telecom) |
[Alpha Biz= Reporter Kim Minyoung] Heungkuk Securities expects SK Telecom's first-quarter earnings to maintain a stable trend. He also expressed expectations for a new dividend policy as it was the most forward-looking dividend policy even before the government implemented the "Corporate Value Up Support Plan." Investment opinion 'buy' and target stock price remained at 70,000 won.
"SK Telecom is expected to remain stable with first-quarter sales of KRW 4.477 trillion (+2.4% year-on-year) and expected operating profit of KRW 498.5 billion (+0.7%)," Heungkuk Securities said. "The 5G penetration rate is close to 70%, limiting the growth of the telecommunications sector, but it is a stable factor in terms of cost."
"In the wired sector, new B2B businesses such as DC and cloud continue to grow steadily amid slowing growth of high-speed Internet and IPTV," Heungkuk Securities said. "In the long term, we plan to focus on securing completion through materialization of AI (artificial intelligence) Company strategies. The stable operation of existing legacy systems and strengthening AI infrastructure will continue."
"The new dividend policy following the end of the existing dividend policy will be unveiled soon. Given the precedent, there will be little possibility of a retreat in the shareholder return policy. It is expected to maintain at least existing level of dividends but leave open the possibility to link additional shareholder returns due to the inflow of subsidiary dividends or increased profits," Heungkuk Securities said.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
