[Edaily Reporter Kwon Oh Seok ] NH INVESTMENT & SECURITIES announced on the 13th that it is maintaining its “Buy” rating on KTCorporation(030200)(KT) but lowering its target price from 89,000 won to 85,000 won.

Ahn Jae-min, an analyst at NH INVESTMENT & SECURITIES, stated, “The new businesses recently proposed by KTCorporation are expected to become new growth engines that will surpass its existing legacy telecommunications business.”
He emphasized, “Initiatives in new businesses—including △the construction of a 1 GW data center and an AI token factory, △the expansion of the submarine fiber-optic cable business by leveraging network strengths, △the establishment of Edge AI telecommunications infrastructure using telephone exchange buildings, and △entry into the stablecoin market through BC Card and Kbank—will contribute to earnings growth and higher valuations.”
Regarding the AX-based growth and corporate value enhancement plan announced the previous day, Analyst Ahn explained, “The company has set a target ROE (return on equity) of 9–10% for 2028,” adding, “While expectations for stable mid- to long-term growth and proactive shareholder returns remain valid, we are lowering our target price due to downward revisions to earnings estimates for 2026 and beyond.”
KTCorporation’s second-quarter results showed revenue of 6.68 trillion won (down 10.1% year-over-year) and operating profit of 648.3 billion won (down 36.1%); operating profit exceeded the market consensus of 603.5 billion won. Analyst Ahn said, “While wireless service revenue decreased to 1.67 trillion won (-1.8%) due to subscriber churn caused by the data breach, AX business revenue grew to 367.8 billion won (+22.3%).”
He added, “The subsidiaries posted solid results, with KTCorporation Estate (288.9 billion won, +80.1%) and BC Card (930.7 billion won, +2.3%) contributing to profits,” noting that “marketing expenses stabilized at 688.9 billion won (+5.0%).”