KT Corp (030200 KP) Buy: 1Q a miss, but the AX platform vision instils confidence

研报英文原文证据摘录

KT Corp (030200 KP) Buy: 1Q a miss, but the AX platform vision instils confidence

12 May 2026

KT Corp (030200 KP) EquitiesWireless

Telecommunications

Buy: 1Q a miss, but the AX platform vision instils

confidence Korea

◆ 1Q result a miss: revenue declined due to early termination- MAINTAIN BUY

fee waiver in January and base effect of real estate project

TARGET PRICE (KRW) PREVIOUS TARGET (KRW)

◆ We expect AX innovation to boost revenue, with KT cloud

69,860 66,520 revenue growth reaccelerating starting from 2Q26

◆ Maintain Buy; lift TP to KRW69,860 (from KRW66,520) SHARE PRICE (KRW) UPSIDE/DOWNSIDE

59,900 +16.6%

1Q results a miss: KT’s 1Q26 consolidated revenue fell 1% y/y, tracking below both (as of 12 May 2026)

HSBCe and consensus due to flat wireless service revenue y/y and a high base MARKET DATA

effect from 1Q25 real estate sales. KT had a net loss of c230k handset subs during Market cap (KRWb) 15,096 Free float 87%

the early termination-fee waiver period in January 2026, but it has added back Market cap (USDm) 10,239 BBG 030200 KP

3m ADTV (USDm) 21 RIC 030200.KS

subscribers since February. In total, it added 177k net wireless subscribers in 1Q.

The flat KT cloud revenue y/y also tracked below our FY26 estimate, driven by lower FINANCIALS AND RATIOS (KRW)

DC Design and Build revenue. But KT guided to double-digit revenue growth for the Year to 12/2025a 12/2026e 12/2027e 12/2028e

HSBC EPS 7,122 6,808 7,359 8,325

full year and reiterated the plan to expand data centre (DC) capacity to 500MW+ HSBC EPS (prev) 7,094 6,680 7,271 8,198

within five years. KT’s 1Q26 OP declined 30% y/y, missing consensus/HSBCe by Change (%) 0.4 1.9 1.2 1.6

Consensus EPS 6,920 6,141 6,541 6,842

8%/17%. Its EBITDA and net profit declined 13% and 35% y/y in 1Q, respectively.