"A New High Could Be Broken Within the Year"... SK Telecom Seen for Dividend and Earnings Growth - Hana Securities

[Financial News] Hana Securities said on the 1st that it remains bullish on SK Telecom's dividend and earnings growth potential, and kept its investment rating at "Buy" with a target price of 140,000 won.
Kim Hong-sik, a researcher at Hana Securities, said, "Given expectations that 5G standalone mode (SA) and AI base station deployment will begin in earnest next year, there is a high chance the stock will retest its previous peak of 140,000 won within the year."
Kim added, "As SK Hyper, a subsidiary, is operated in the form of an SPC structure, data center operations based on profitability and an increase in SK Telecom's dividend funding are expected." He said annual consolidated operating profit could approach 2 trillion won, and investor interest in SK Telecom is likely to rise as the market focuses on AI base stations and 5G SA adoption, especially after autumn.
He also said favorable factors, from earnings to dividends, are likely to pile up this month. Kim noted, "As first-half results come in better than expected, expectations for higher dividends in the fourth quarter will grow, and the full-scale U.S. spectrum auction is likely to have a significant impact on domestic regulators." He added, "Centered on SK Telecom, discussions are likely to intensify over new spectrum allocations, 5G tariff revisions, commercialization of 5G SA, and policies to expand the rollout of AI base stations."
He went on to say, "Ultimately, the two main growth engines of AI — AI data centers and the spread of AI base stations — are likely to emerge as key national policy themes and as growth strategies for SK Telecom. As SK Telecom is selected as a state-backed AI operator, it is set to establish itself as a leading domestic AI player." He added, "Accordingly, its stock is expected to move differently from that of latecomers in the domestic market."

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