On the 26th, KB Securities analyzed that KT's one-time labor costs have decreased and a structural improvement in performance continues. They adjusted the target stock price upwards from 65,000 won to 70,000 won and maintained the investment opinion of 'buy'. The closing price of KT on the previous trading day was 55,100 won.
In the second quarter after the SK Telecom SIM card security breach issue, the number of 5G mobile subscribers increased by 3% compared to the previous quarter, contributing to overall revenue and profit improvement. Moreover, the number of wired Internet subscribers increased in line with the growth of subscribers to the giga Internet premium plan.
KB Securities estimated KT's operating profit for the third quarter this year at 557.1 billion won. Kim Jun-seob, a researcher at KB Securities, noted, 'In the third quarter, the effect of subscriber growth will be fully recognized, enhancing revenue and profit improvements,' adding that 'the B2B (business-to-business) artificial intelligence transformation (AX) business is expected to win large AI projects aimed at large corporations and information technology firms to contribute to performance improvement.'
This year, it is estimated that the influence of collective bargaining negotiations, which had been a factor increasing KT's one-time expenses, will also diminish. The results of this year's wage negotiations are known to have been agreed upon at a level slightly lower than last year, with a more than 3% increase in base salary and a one-time payment of 3 million won.
Some investors have expressed concerns about the real estate development project in Jayang-dong, which concludes in the third quarter of this year, but there is also an expectation of continued development.
Researcher Kim stated, 'The possibility of a reverse base effect is raised as the significant one-time revenue and operating profit, which have been recognized since the first quarter, may decrease, but it has been confirmed that the Daejeon Human Resource Development Center project, which began development at the end of last year, has been fully subscribed.' He added that 'real estate development will continue to serve as a stable revenue growth base for KT.'