[Click eStock] "SK Telecom, High Dividends and Earnings Growth... Stable Stock Performance Expected"

DB Financial Investment forecasted that SK Telecom will continue to experience a stable stock price trend due to sustained high dividends and earnings growth. They maintained a 'Buy' rating and a target price of 68,000 KRW.

SK Telecom recorded sales of 4.4224 trillion KRW and an operating profit of 537.5 billion KRW in the second quarter of this year. These figures represent increases of 2.7% and 16.0% respectively compared to the same period last year, meeting market expectations. Shin Eun-jung, a researcher at DB Financial Investment, explained, "One-time gains related to the patent pool were reflected, and marketing expenses decreased by 5.1% and depreciation expenses by 3.4% compared to the same period last year, contributing to cost efficiency that drove solid profits."

Researcher Shin also projected profit growth through cost efficiency in the second half of the year. He stated, "Although it will not be easy to continue reducing marketing expenses due to the launch of flagship models such as the iPhone 16 in the second half, considering the recent trend of easing competition intensity, marketing expenses are expected to be maintained at the level executed in the second half of last year. Starting this month until September, a subscription-based search service will be launched free of charge for one year for customers, and it remains to be seen whether this can develop into an AI revenue model from a long-term perspective."

Furthermore, he added, "The expected dividend per share (DPS) this year is 3,590 KRW, reflecting a dividend yield of about 6.9%, which is high. Due to the combination of high dividends and continued earnings growth, SK Telecom is one of the most attractive stocks among those expected to maintain a stable stock price trend."