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[Alpha Biz= Kim Sangjin] Hana Securities stated on Friday that KT is expected to achieve remarkable profit growth this year due to a low base effect and cost-cutting measures. The firm maintained KT as its top pick in the telecom sector, with a target price of 60,000 KRW and a "Buy" rating.

Hana Securities commented, "KT's stock price is expected to show strength at the beginning of the year. While Q4 earnings may appear weak due to a large one-off labor cost, the stock price will likely remain resilient and attempt to rise."

The firm further explained, "Rather than focusing on past performance, factors such as changes in dividends, potential share buybacks, and the introduction of 5G Advanced are expected to have a greater impact on the stock price. As attention shifts to Q1 and annual earnings, expectations for a price rally may increase, leading to a strong rebound."

Hana Securities also predicted KT's impressive profit growth for 2024, stating, "With profits from apartment sales, consolidated operating profit for Q1 is projected to reach a record 1.2 trillion KRW. Additionally, cost reductions from workforce restructuring at the headquarters will contribute to cutting operating expenses."

Considering shareholder returns, Hana Securities forecasted KT's stock price could rise to 55,000 KRW. As of the previous day's closing, KT's share price stood at 43,950 KRW.

 

 

 

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