[Click eStock] "KT, Ongoing Performance Improvement and Value-Up Plan"

Daishin Securities diagnosed on the 12th that KT's performance improvement and corporate value enhancement plans are still ongoing. They maintained a 'Buy' investment rating and a target price of 53,000 won.

Kim Hoe-jae, a researcher at Daishin Securities, pointed out that the recent sharp decline in KT's stock price was due to preemptive concerns about foreign investor outflows. He analyzed, "Since the 3rd, the index decline caused by foreign selling and the greater-than-index drop in the telecommunications sector, which has a high foreign investor ratio, were anticipated movements. KT maintained a foreign investor ratio of about 49% after reaching the foreign investor limit early last month, so other investors sold shares amid concerns that foreign investors might exit quickly."

Researcher Kim said that although the stock price fell sharply, the performance improvement and corporate value enhancement plans are still underway. He noted, "In the fourth quarter of this year, a one-time cost of about 1.1 trillion won related to the redeployment of 4,500 personnel will occur, but from next year, an annual cost reduction effect of about 300 billion won is expected." He added, "Next year, a one-time real estate-related profit of about 500 billion won will also be reflected." Furthermore, he stated, "According to the corporate value enhancement plan, the scale of shareholder returns will accelerate. The expected dividend per share (DPS) next year is around 2,100 won."