Mirae Asset Securities raised its target price for SK Telecom on the 8th, saying earnings are expected to improve on the back of an increase in fifth-generation (5G) mobile subscribers. It kept its "buy (BUY)" rating and lifted the target price to 98,000 won from 93,000 won. SK Telecom's closing price in the previous trading day was 81,600 won.
Mirae Asset Securities projected SK Telecom's consolidated revenue for the first quarter of this year at 4.4 trillion won, with operating profit at 508.2 billion won. Those figures are up 1.5% and 326%, respectively, from a year earlier.
By business segment, on a standalone basis, revenue is expected to be 3.1 trillion won and operating profit 366 billion won, up 0.5% and 180%, respectively, from a year earlier. Subsidiary SK Broadband is forecast to post revenue of 1.2 trillion won and operating profit of 103 billion won, increases of 3.2% and 21%, respectively.
Choi Yu-jin, an analyst at Mirae Asset Securities, said, "SK Telecom will continue to see earnings growth thanks to the inflow of a meaningful number of 5G subscribers and an increase in average revenue per user (ARPU)," adding, "For SK Broadband, revenue recognition from the Pangyo data center and a rise in the utilization rate to 97% from 77% will act as drivers of earnings improvement."
Profitability improvement from cost efficiencies is also expected to continue. Choi said, "As number portability (MNP) competition stabilizes, marketing expenditures will remain limited," and analyzed, "Depreciation expenses will also trend lower as the investment recovery cycle begins."
Accordingly, 2026 revenue is projected to reach 18 trillion won, up 4.8%, and operating profit to reach 1.9 trillion won, up 79.1%.
The likelihood of dividend resumption was also assessed as high. Mirae Asset Securities expected first-quarter dividends this year to resume at a minimum level of 800 won and 2026 dividends to reach 3,540 won, up 113% from the prior year.