[Click eStock] "KT Expected to Post Record Quarterly Earnings... Set to Become No.1 in Telecom Sector Market Cap"

Target Price Raised from 60,000 Won to 70,000 Won

Hana Securities raised the target price for KT from 60,000 won to 70,000 won on the 27th, citing expectations of the highest quarterly earnings in the first quarter of this year along with a large shareholder return. The investment rating was maintained at 'Buy.'

Kim Hong-sik, a researcher at Hana Securities, stated in a report on the same day, "Due to the effects of organizational restructuring and profits from apartment sales, the highest quarterly earnings are expected in the first quarter of 2025," naming KT as the top pick in the telecommunications sector for March.

KT, currently conducting a treasury stock buyback and cancellation worth approximately 250 billion won, also has high shareholder returns as a positive factor. Researcher Kim explained, "The scale of shareholder returns this year is expected to reach 950 billion won, resulting in a high shareholder return yield of 7.9%. It is likely that investors' confidence in KT's dividend increase will strengthen with the dividend announcement in the first quarter of May 2025."

KT's operating profit at the headquarters is projected to be 1.8 trillion won this year, and consolidated operating profit is expected to reach 2.7 trillion won, reflecting profits from apartment sales by subsidiaries. Researcher Kim said, "Although the total shareholder return scale increased by 90% in 2025 compared to 2023, the stock price rise was only 50%. An additional stock price increase of more than 40% is expected compared to the current stock price (47,800 won). Considering that SKT's annual shareholder return scale is about 770 billion won, KT is likely to establish itself as the number one telecommunications company by market capitalization in the future."