SK Telecom Co Ltd Risk Reward Update

研报英文原文证据摘录

SK Telecom Co Ltd Risk Reward Update

UpdateM

RiskRisk RewardReward– SK Telecom- SKCoTelecomLtd (017670.KS)Co Ltd (017670.KS)

We await new management's strategic direction and shareholder return policy.

PRICE TARGET W80,000 EQUAL-WEIGHT THESIS

Base case, sum-of-the-parts. ▪With a new CEO at the helm, we

Core telecom operations - dividend discount model (8.0% cost of equity; 0% terminal recommend waiting for management to

growth rate). disclose strategic priorities and long-term

AI investments - benchmark private transaction value or latest market value (for listed shareholder return policy.

entities), with 30% holding company discount applied. ▪We now see reduced risk of dividends

being reset lower as cost savings have been W101,595

able to offset revenue loss resulting from

Consensus Price Target Distribution W55,000.00 W150,000.00 subscriber loss coming from the data MS PT

breach.Source: Refinitiv, Morgan Stanley Research Mean Morgan Stanley Estimates

▪We see the company's more proactive

stance on AI data centers offering potential

upside from the AI infrastructure story.

RISK REWARD CHART ▪The value of SKT's AI investments have

emerged as a share price driver, making it a

KRW key component of the valuation debate.

Consensus Rating Distribution

W100,000W100,000(+13.12%)W100,000(+13.12%)(+13.12%)

52% Overweight

32% Equal-weight

90000 W88,400W88,400W88,400

16% Underweight

W80,000W80,000(-9.50%)W80,000(-9.50%)(-9.50%)

MS Rating

60000 Source: Refinitiv, Morgan Stanley Research

W65,000W65,000(-26.47%)W65,000(-26.47%)(-26.47%)

30000 Risk Reward Themes

New Data Era: Positive

View descriptions of Risk Rewards Themes here

JUL '25 JAN '26 JUL '26 JUN '27

Key: Historical Stock Performance Current Stock Price Price Target

Source: Refinitiv, Morgan Stanley Research