[Click eStock] "SK Telecom, Must Prepare for Potential Rerating Next Year"

Hana Securities analyzed on the 5th that SK Telecom should prepare for the possibility of a stock price revaluation next year. They maintained a 'Buy' investment rating and a target price of 70,000 KRW.

Hong-sik Kim, a researcher at Hana Securities, said, "The domestic mobile phone sales volume has significantly decreased, per capita subsidies have declined, and the churn rate has also dropped considerably, so further reductions in marketing expenses seem difficult. However, at this point, it is necessary to increase interest in the possibility of re-rating next year." He added, "From the second half of the year, expectations for tariff plan revisions following the frequency auction may rise, which could lead to a more resilient rebound in stock price terms."

Researcher Kim forecasted that the consolidated operating profit for 2025 will be at this year's level. He stated, "There are not many factors for performance improvement next year. After the fourth quarter, an increase in intangible and tangible depreciation expenses is expected, and mobile service revenue will remain at this year's level as 5G subscriber saturation slows tariff plan upselling (purchase of higher-tier products)."

However, considering the performance trend, Kim explained that buying now might be the best option. He observed, "Although the 5G maturity phase is passing, SKT's operating profit is expected to maintain around 1.8 trillion KRW, and based on 5G Advanced and artificial intelligence (AI), a new tariff plan in 2026 is likely to usher in a renewed trend of significant performance improvement."