KB Securities said on the 29th that KT is expected to grow its non-telecommunication subsidiary. The investment opinion remained 'buy' and the target price was raised to 40,000 won.
KB Securities analyzed, "investmentpoints for KT are friendly shareholder return policy, improvement of wireless business performance, and expansion of expectations for growth of non telecommunications subsidiaries,"and "expectations for improvement of content affiliates such as Studio Genie and Sky TV among telecommunication subsidiaries and re-evaluation of K-Bank are expanding.".
"The performance of the wireless business is expected to continue to improve in the second quarter," KB Securities said. "As the number of 5G subscribers is expected to be around 5 million as of the end of the second quarter, it will be a driving force for average sales per wireless subscribers.".
In addition, KB Securities said, "While the customer life cycle is shorter compared to our competitors, we expect marketing costs to be 518.4 billion won, down 7.8% from the previous quarter,"
KB Securities said. "Operating profit in the second quarter will be 412.6 billion won to meet market expectations.".
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
