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Photo = Yonhap news |
[Alpha Biz= Reporter Kim Sangjin] On December 16, NH Investment & Securities analyzed KT (030200) and stated that although the company will likely report a loss in Q4 due to one-off costs such as voluntary retirement programs, significant performance growth is expected in 2025. The firm maintained a "Buy" rating and a target price of 60,000 KRW. The previous day’s closing price was 44,850 KRW.
According to NH Investment & Securities, KT’s Q4 revenue is expected to be 6.68 trillion KRW, down 0.1% year-on-year, with an estimated operating loss of 7.2 trillion KRW. The one-off voluntary retirement costs, estimated at around 1 trillion KRW, will result in a Q4 loss, but from 2025 onwards, operating profit is expected to improve significantly due to lower labor costs.
The firm expects KT to maintain stable growth next year, driven by the effects of the voluntary retirement of 2,800 employees and the transfer of 1,700 employees to subsidiaries, which should lead to labor cost savings of around 300 billion KRW by 2025. Additionally, revenue from the "Guwi Station KT Complex Development" in Gwangjin-gu is expected to be reflected in the first half of 2025.
NH Investment & Securities forecasts KT’s operating profit in 2025 to reach 2.11 trillion KRW, marking a 20.7% increase from the previous year, excluding the one-off restructuring cost of 1 trillion KRW in Q4 2024. The company has already indicated a strategy to improve return on equity (ROE) and increase shareholder returns through a capital enhancement plan.
The firm also projects a dividend of 2,600 KRW per share for 2025, representing a dividend yield of 5.8%, along with a stock buyback of approximately 250 billion KRW.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
