[E-Daily Reporter Kwon Oh Seok ] HEUNGKUK METALTECH CO.,LTD. announced on the 15th that it is maintaining its “Buy” investment rating and 120,000 won target price for SKTelecom(017670).

Hwang Seong-jin, an analyst at Heungkuk Securities, explained, “We expect SKTelecom’s earnings to return to a full recovery trajectory in the second quarter, following the first quarter, and to post strong results on par with previous years,” adding, “The company is expected to show a complete recovery from the impact of various uncertainties caused by last year’s cyberattack.”
He estimated that second-quarter revenue would reach 4.4045 trillion won (up 1.5% year-over-year), with operating profit at 562.3 billion won (up 66.2%). He assessed that the company recovered some of the subscribers lost last year during the early part of this year, when competitors were offering waivers on early termination fees, and that a gradual trend of subscriber recovery has continued since then, driven by factors such as SamsungElectronics’ handset promotions.
Analyst Hwang stated, “Competition in the wireless market has also remained stable, and the absence of any significant cost factors appears to have had a positive impact on earnings,” adding, “We expect SK Broadband to maintain its strong performance trend, driven by robust growth in internet and TV subscribers, as well as additional revenue from the Pangyo data center.”
He also highlighted the company’s medium- to long-term growth strategy centered on AI data centers (AI DCs). Future construction plans aim to gradually open AI DCs with a total capacity of 5 GW starting in 2029; following an assessment of the results from the first phase, the company plans to expand to an additional 10 GW of AI DC capacity beginning in 2035.
He said, “This is intended to respond to the recent surge in demand for AI infrastructure, and I understand it as a strategy to expand not only the colocation business of existing data centers but also the GPUaaS-based Neo Cloud business,” adding, “The investment cost for the first phase is estimated at approximately 350 trillion won, and it appears that about 3 million GPUs will be required; the funding for this investment is expected to be secured through the participation of global big tech companies and strategic partners.”
He continued, “Rather than worrying about the massive CAPEX (capital expenditure) investment, we need to focus on securing a growth engine through core infrastructure strategies for the AI era,” adding, “We also note the trend toward normalizing shareholder returns through a recovery in earnings to previous years’ levels and the resumption of dividends (a quarterly dividend of 830 won). “We also view the expansion of effective shareholder returns through the reduced dividend (funded by 1.7 trillion won in capital surplus), scheduled to take effect in the fourth quarter, as a meaningful step,” he added.