Hana Securities has positively evaluated SK Telecom's data center expansion project, maintaining a target price of 140,000 won and a 'buy' investment rating.
In a report released on September 9, analyst Kim Hong-sik stated, "Despite aggressive data center expansions, the likelihood of excessive capital expenditure (CAPEX) increases is low. Considering the first half's performance, there is a high possibility of an increase in the dividend per share (DPS) in the fourth quarter, when tax-exempt dividends become possible."
Kim noted, "SK Telecom has established a dedicated data center subsidiary, SK Hyper, and plans to spin off its wired subsidiary, SK Broadband, to create new data centers under SK Broadband and SK Horizon. Assuming an annual traffic increase of 45%, SK Telecom's total data center capacity is expected to reach 1.5 GW by 2032."
He added, "Optimistically, SK Telecom's data center revenue could reach 5 trillion won and operating profit 1 trillion won by 2032. Given that it currently achieves around 500 billion won in revenue based on 140 MW, simple calculations suggest that revenue could increase tenfold."
Kim emphasized, "Considering the traffic situation, 1.5 GW by 2032 is a realistically achievable figure. Given that this approach can reduce investment burdens and increase dividends for shareholders, the data center expansion could enhance SK Telecom's investment appeal."
However, he cautioned, "It is difficult to estimate SK Telecom's total data center revenue from an accounting perspective. In the case of SK Hyper, it operates as a special purpose company (SPC), meaning revenue is likely to be reflected as fees or dividends rather than direct sales, and the profit-sharing method with investors and SK Horizon must also be considered."
* This article has been translated by AI.
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