[Click eStock] "SK Telecom, Target Price 78,000 Won... High Dividend Appeal"

[Asia Economy Reporter Park So-yeon] Ebest Investment & Securities on the 1st set a target price of 78,000 KRW and a buy rating for SK Telecom.

SK Telecom made a fresh start last month after a spin-off and stock split followed by re-listing. It has transformed into a pure telecommunications company operating wired and wireless communication businesses through its core wireless business and subsidiaries such as SK Broadband, SK Telink, and SK Stoa.

Lee Seung-woong, a researcher at Ebest Investment & Securities, said, "We focus on the high dividend appeal expected to be highlighted based on stable future earnings from the telecommunications business, as well as new growth businesses such as the metaverse Ifland and subscription service T Woojoo. Cooperation with Onmind and Korbit, which SK Square has decided to invest in, is also anticipated, so synergy with SK Square is expected."

Researcher Lee Seung-woong stated, "A medium-term dividend policy was announced to determine the total dividend amount within 30-40% of the amount obtained by subtracting capital expenditures (CAPEX) from EBITDA. Considering this, the expected minimum dividend per share (DPS) is 3,577 KRW this year and 3,900 KRW next year."

He added, "Next year, the proportion of 5G subscribers is expected to exceed 50% (based on handsets), contributing significantly to performance. With a favorable environment for the wireless communication business, including eased marketing competition and a decline in CAPEX, there is no difficulty in increasing the total dividend amount when considering profit growth next year."