Hana Securities analyzed on the 27th that the scale of shareholder returns expected this year for KT is anticipated to surge, but the stock price has not yet reflected this. The target stock price has been raised from 60,000 won to 70,000 won, and the investment opinion remains "buy."
Kim Hong-sik, Research Institute at Hana Securities, noted, "Considering that shareholder returns are expected to reach 950 billion won annually, the KT stock price has not increased sufficiently," adding, "While total shareholder returns are projected to increase by 90% from 2023 to 2025, the stock price has only risen by 50%, suggesting an expected additional stock price increase of over 40% compared to the current stock price."
He further analyzed, "Due to the effect of organizational restructuring, labor costs are expected to drop significantly, and profits from apartment sales are anticipated to lead to maximum quarterly results in the first quarter of 2025," stating, "Excluding one-time gains and losses, the surge in net profit for the headquarters is expected to result in a 40% increase in the dividend per share (DPS) compared to the previous year in 2025."
Hana Securities estimated that KT's sales will reach 27.778 trillion won this year, and operating profit will amount to 270.7 billion won, representing increases of 5.11% and 234.49%, respectively, compared to the previous year. Kim noted, "In 2024, a sharp decline in profits is expected due to the reflection of one-time labor costs, but in 2025, the effects of organizational slimming will become evident against a lowered baseline, leading to record-high operating profits being anticipated."