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

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New Street Research

Chris Hoare

EUR 9281.00 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

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KT Corp (ADR)

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US48268K1016 Berlin Stock Exchange South Korea

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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 9281.00

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 9281.00

August 9, 2024 August 9, 2024 1 EN

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 9281.00

1h / 50m 1h / 50m 1 EN

Soomit Datta

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WISE (BUY, TP: £9.00, +15%) WISE - H1 25 and Platform deal bang on cue; from billions to trillions

WISE’s full H1 release this morning filled in the lower half of the P&L after interims and gross margin had been pre-released.

EUR 9281.00

3h / 3m 3h / 3m 1 EN

Chris Hoare

Chris Hoare

SK Telecom (Buy, TP: KRW 100,000, +74%) Q3 24 Quick Take: Encouraging Enterprise growth and a decent improvement in EBIT

SK Telecom saw revenue accelerate again on the back of B2B Enterprise demand. Mobile also kept steady as the environment stayed benign. Notably, capex spend remains disciplined while operating profit was up 7.1% YoY off lower depreciation and continued cost control. The recently announced Corporate Value Up plan was largely expected.

EUR 9281.00

3h / 5m 3h / 5m 1 EN

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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

Frontier Post-3Q24 Model Update

WISE (BUY, TP: £9.00, +15%) WISE - H1 25 and Platform deal bang on cue; from billions to trillions

SK Telecom (Buy, TP: KRW 100,000, +74%) Q3 24 Quick Take: Encouraging Enterprise growth and a decent improvement in EBIT

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