Analyst Note| Dan Baker |
SK Telecom’s, or SKT's, 2020 result was strong with year-on-year revenue growth of 5.0%, operating income growth of 21.8% and earnings per share growth of 74%. Pleasingly, the core mobile business reported 2.8% revenue growth and 7.5% operating income growth year on year. The addition of t-broad for the last eight months of the year also helped operating profit growth. The net income growth was boosted by increased contributions from SK Hynix. SK Hynix--in which SKT has a 20.6% stake, which makes up around half of our SKT valuation-- reported 18% revenue growth and 137% growth in net profit year on year. We will update our forecasts when SKT releases its full financial statements for 2020 and for now retain our fair value estimate at USD 32.00 per ADR.