Hanwha Investment & Securities analyzed on the 10th that it is time for KT to be revalued as its poor performance compared to its competitors and uncertainties of its subsidiaries are resolved. The investment opinion was 'buy' and the target price was raised from 36,000 won to 42,000 won.
Hanwha Investment & Securities expects KT's consolidated sales to reach 6.1 trillion won and operating profit to reach 4,044 billion won in the second quarter. Analysts say that ARPU (average sales per subscriber) is improving stably compared to its competitors and that it is showing solid performance as it ranks first in net subscriber share in the fixed-line market.
The performance of subsidiaries is also improving. "Among the subsidiaries affected by COVID-19, BC Card has begun to recover gradually," said Hanwha Investment & Securities "We expect the estate to recover to about half of the previous year's level in the second half of the year when the supply of vaccines is expanded.".
"BC Card plans to establish a living financial ecosystem by expanding its digital payment platform and MyData business based on the living data of KT customers, while K-Bank plans to expand its technology-based differentiated product coverage," Hanwha Investment & Securities said. "It is positive that the proportion of customers in their 30s with high fintech understanding is rapidly increasing due to the synergy effect with Upbit.".
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
