Hana Securities raised the investment appeal of the telecommunications services sector for February to "high" and said on the 27th that a rebound in telecom stocks led by SKT is expected.
Kim Hong-sik, a researcher at Hana Securities, said, "The negatives related to hacking appear to be fading," and noted, "We judge that the share prices of telecom companies have sufficiently reflected weak fourth-quarter results and uncertainty over dividends per share (DPS)."
Kim said, "Last year's lingering negatives are being resolved, and the odds are growing that new positives will come to the fore this year," adding, "It is positive that expectations are gradually rising for the introduction of fifth-generation (5G) SA (standalone mode) and the launch of new 5G plans this year."
At the same time, SKT was picked as the top pick within the sector. The explanation was that most investors are already aware of the sharp cut and potential nonpayment of the fourth-quarter dividend last year. Kim also pointed out that DPS, which had been expected to take some time to normalize early, is now anticipated to return to the 2024 level as early as this year.
Kim said, "Now expectations for a rise in the previously depressed share price are set to grow, and cash flow is also expected to improve this year on gains from the sale of Anthropic," adding, "If DPS is 3,500 won and the share price rises to reflect an expected dividend yield of up to 4.4%, SKT's share price is expected to climb to 80,000 won."