Hana Securities noted on the 27th that, as the short-term benefits related to KT have run out, the stock price is expected to show a box range trend in September. They maintained a target price of 70,000 won and an investment opinion of 'buy.' The closing price of KT on the previous trading day was 55,100 won.
KT's stock price has shown a sluggish trend this month after attempting a rebound last month. Hana Securities analyzed that investors are already sufficiently aware of the possibility of 'earnings surprise', which has led to the perception that the actual second-quarter earnings announcement is viewed as material exposure.
Kim Hong-sik, a researcher at Hana Securities, explained, 'The large-scale apartment sales revenue recognition in the second quarter naturally increased the desire for profit-taking, as the consolidated operating profit of KT in the third quarter is bound to decrease quarter-on-quarter.'
Hana Securities believes that since the consensus on KT's consolidated operating profit (average forecast from the securities industry) has already risen, it is not easy for results to increase the stock price, and the KT stock price has already nearly doubled over the past two years, therefore the increase in shareholder returns has also been adequately reflected in the stock price.
Researcher Kim stated, 'Looking at just September, KT's stock price will show a box range trend,' adding, 'It will only be next year that an upward adjustment of the quarterly dividends per share (DPS) will take place.'
He also mentioned, 'Only if market interest rates plummet or expectations for 5G rate plan revisions arise, will KT's expected dividend yield finally drop a notch, but it still seems somewhat early for that,' and added, 'As investors' perspectives shift from the end of this year to next year, there is a high possibility of a substantial rise in KT's stock price.'