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A017670 Signals Future Pressure As Dividend Pause Overshadows Profit Outlook

Cyber Setbacks And Heavy Spending Will Dampen Long-Term Prospects

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A017670
AnalystLowTarget
Not Invested
Published 06 Jul 2025

Update shared on 14 Dec 2025

Fair value Decreased 3.05%
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AnalystLowTarget's Fair Value
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1Y
-7.0%
7D
-1.9%

Analysts have modestly trimmed their price target on SK Telecom from ₩44,355 to ₩43,000, reflecting slightly lower fair value assumptions. They also highlight improving revenue growth prospects, a firmer profit margin profile, and a more attractive forward P/E multiple.

What's in the News

  • SK Telecom will not distribute any cash dividends for the third quarter of 2025, citing operating results and a changing business environment. The company reiterated its intention to pursue shareholder returns as cash flow and financial conditions improve (company announcement).
  • SK Telecom has been added to the S&P Global BMI Index, enhancing its visibility and accessibility to global institutional investors tracking the benchmark (index provider disclosure).

Valuation Changes

  • The fair value estimate has been reduced modestly from approximately ₩44,355 to ₩43,000, indicating a slightly lower assessed intrinsic value.
  • The discount rate has edged down from about 7.02 percent to 6.92 percent, reflecting a marginally lower required return in the valuation model.
  • The revenue growth assumption has shifted from a slight contraction of around 0.20 percent to positive growth of about 1.23 percent, indicating a more constructive outlook for the top line.
  • The net profit margin forecast has increased from roughly 6.92 percent to 7.64 percent, pointing to an expectation of moderately stronger profitability.
  • The future P/E multiple has been revised down from approximately 9.41x to 8.16x, signaling a somewhat more conservative valuation benchmark despite the improved assumptions.

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Disclaimer

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