New Street Research - KT Corp (ADR) (KTC) KT Corp (Buy, TP: KRW 70,000, +59%) New Corporate Value Up Plan Represents a Positive Step Forward

Report

New Street Research

Chris Hoare

EUR 9313.00 For Business Accounts Only

KT Corp (Buy, TP: KRW 70,000, +59%) New Corporate Value Up Plan Represents a Positive Step Forward

Following SK Telecom’s plan to improve corporate value, KT has highlighted three priorities to further its corporate value yesterday. Building up to its 9-10% return on equity target by 2028, it aims to build up its AICT contribution and improve EBIT margin to 9%, optimise latent value from non-core assets and has also guided for an additional KRW 1tn (US$ 0.72bn) in buybacks/cancellations, in excess of its current 50% shareholder remuneration policy. Our thoughts below.

06/11/2024 1 EN

Underlying

KT Corp (ADR)

See profile

US48268K1016 Berlin Stock Exchange South Korea

Provider

New Street Research

Provided by our team of experienced analysts, our work is idea driven, based on independence of thought, sector expertise, and firmly focussed on fundamentals and valuation.

New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:

Pan European Telecom Services and Cable
US Telecoms, Cable, Satellite and Towers
Global Emerging Market Telecoms
Japan Telecoms
Asian Internet
Pan European Healthcare
Global healthcare thematic research

We provide debt research on:

Pan European Telecom Services and Cable

See profile

Analysts

Chris Hoare

Other Reports on these Companies

New Street Research

South Korean Telcos Q2 24 review: Softer but capex moderation remains encouraging

Group service revenue and EBITDA trends were softer in Q2, beset by slower Enterprise growth and a one-off labour cost hike by KT. By contrast, mobile improved to 2.1% YoY, led by SKT and KT. Given the benign mobile landscape and the removal of Stage X’s mobile license, we expect trends to sustain at current levels. Capex spend is under control while quarterly dividends were unchanged. Separately, we have trimmed our target prices for SKT and LG Uplus; KT remains our preferred pick.

EUR 9313.00

August 27, 2024 August 27, 2024 1 EN

New Street Research

KT Corp (Buy, TP: KRW 70,000, +83%) Q2 24 Quick Take: Impacted by one-off cost and B2B restructuring

Q2 was impacted by a decline in its service revenue and a one-off cost related to an early settlement of wage negotiations (KRW 64bn impact). As a result, the stock was down 2% today. However, some of the bright spots remained – sustained growth in Wireless, profitable Enterprise segments, KT Cloud and continued capex moderation.

EUR 9313.00

August 9, 2024 August 9, 2024 1 EN

Match Group (MTCH, Buy, $54 target) MTCH First Take: Positioning for a break up?

What's New: In this first take following tonight’s results, we focus on: 1. Tinder a la carte (ALC) rollout delayed, clouding outlook for the flagship app 2. Tinder MAU trends under more pressure since mid-Sept: back to school hangover? 3. Are new segment profit disclosures a precursor to “exploring strategic alternatives?” 4. What does all of this imply for the Investor Day? And the CFO transition? 5. What to do with the stock

EUR 9313.00

4h / 40m 4h / 40m 1 EN

Soomit Datta

Soomit Datta

MELI US (Neutral, TP: $2,000, -5%) MercadoLibre Credit cards drive big NIMAL and group EBIT miss

Top line trends were in-line/slightly ahead, with only a very slight slowdown in local FX GMV. However, there was a miss at both the gross profit level (2.5%) and, to an even greater extent, at operating income (25%, 19% ex-one-off) and net income (18%).

EUR 9313.00

4h / 44m 4h / 44m 1 EN

Jonathan Chaplin

Jonathan Chaplin

Frontier Post-3Q24 Model Update

This note focuses on changes to the model following 3Q24 results. Earlier today, we published a comprehensive review of results. Our view of the company remains unchanged, whether as a standalone company or as an acquisition target. Intrinsic value is $64 (but they may only get $48.50 in a deal now).

EUR 9313.00

17h / 1m 17h / 1m 1 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

KT Corp (Buy, TP: KRW 70,000, +59%) New Corporate Value Up Plan Represents a Positive Step Forward

South Korean Telcos Q2 24 review: Softer but capex moderation remains encouraging

KT Corp (Buy, TP: KRW 70,000, +83%) Q2 24 Quick Take: Impacted by one-off cost and B2B restructuring

Match Group (MTCH, Buy, $54 target) MTCH First Take: Positioning for a break up?

MELI US (Neutral, TP: $2,000, -5%) MercadoLibre Credit cards drive big NIMAL and group EBIT miss

Frontier Post-3Q24 Model Update

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe