Industry Overview - The Zacks Wireless Non-US industry is facing high capital expenditures for infrastructure upgrades, margin erosion, supply-chain disruptions, and volatility in raw material prices due to geopolitical conflicts and high customer inventory levels. However, there is healthy demand driven by the increasing need for connectivity in the digital age, which is expected to benefit the industry in the long run [1][4]. Key Trends - There is a waning demand for legacy services, leading to increased infrastructure spending that compromises short-term margins. Companies are diversifying from legacy telecom services to business and enterprise opportunities, investing significantly in network upgrades and new technologies [4][5]. - Network convergence is driving traditional carriers and cloud service providers to invest heavily in advanced networking architecture to meet the growing demand for coverage, speed, and quality in mobile broadband and home Internet solutions [5][6]. Market Performance - The Zacks Wireless Non-US industry has underperformed compared to the broader Zacks Computer and Technology sector and the S&P 500, with a loss of 9.9% over the past year, while the S&P 500 and sector rose by 17.1% and 15.1%, respectively [9]. Valuation Metrics - The industry currently has a trailing 12-month Price/Book (P/B) ratio of 0.81X, significantly lower than the S&P 500's 7.82X and the sector's 10.03X. Over the past five years, the industry has traded between a high of 3.66X and a low of 0.32X, with a median of 0.8X [11]. Company Highlights - **KT Corporation**: The largest integrated telecom and digital platform service provider in South Korea, focusing on high-speed wireless networks and digital transformation services. The stock has gained 19.2% in the past year and has a long-term earnings growth expectation of 17.6% [14]. - **Turkcell**: A leading digital services provider in Turkey, with over $27 billion invested in transforming Turkey into a global data hub. The company has a VGM Score of A and is focused on sustainable growth [16]. - **PLDT**: The leading telecommunications provider in the Philippines, with a strategic partnership to develop online and mobile payment solutions. The company has a long-term earnings growth expectation of 7.5% [18].

Core Viewpoint - KT Corp. is currently viewed as a more attractive investment compared to TeliaSonera AB based on various valuation metrics and analyst outlooks [1][3][6]. Valuation Metrics - KT Corp. has a forward P/E ratio of 6.31, significantly lower than TeliaSonera AB's forward P/E of 18.23 [5]. - The PEG ratio for KT is 0.36, indicating a favorable valuation relative to its expected earnings growth, while TeliaSonera's PEG ratio is 3.12 [5]. - KT's P/B ratio stands at 0.66, compared to TeliaSonera's P/B of 2.23, suggesting that KT is undervalued relative to its book value [6]. Analyst Ratings - KT Corp. holds a Zacks Rank of 1 (Strong Buy), indicating a positive earnings estimate revision trend, while TeliaSonera AB has a Zacks Rank of 3 (Hold) [3][6]. - The Value grade for KT is A, reflecting its strong valuation metrics, whereas TeliaSonera has a Value grade of C [6].

Financial Data and Key Metrics Changes - Consolidated revenue for FY 2024 reached KRW 26,431.2 billion, marking a historical record since the company went public in 1998, with a year-on-year increase of 0.2% [7][14] - Operating profit fell 50.9% year-on-year to KRW 809.5 billion, but adjusted for one-off impacts, it increased 9.8% year-on-year to KRW 1,811.8 billion [8][14] - Net profit decreased by 54.5% year-on-year to KRW 450.1 billion, while EBITDA declined 14.2% year-on-year to KRW 4,687.2 billion [14] - Operating expenses rose 3.6% year-on-year to KRW 25,621.7 billion due to increased one-off labor costs and higher depreciation [15] Business Line Data and Key Metrics Changes - Wireless revenue increased by 1.3% year-on-year to KRW 6,959.9 billion, with 5G subscribers exceeding 10.4 million, accounting for 77.8% of the total handset subscriber base [16][17] - Internet revenue grew by 1.1% year-on-year to KRW 2,486.9 billion, driven by an increase in GiGA Internet subscribers [18] - Media business revenue saw a 1.2% year-on-year growth, attributed to IPTV subscriber expansion [18] - B2B services revenue increased by 2.9% year-on-year, supported by solid growth in enterprise Internet and data business [19] - AI/IT business revenue rose by 11.9% year-on-year, driven by AICC expansion and a project in Thailand [20] Market Data and Key Metrics Changes - The content subsidiary's revenue fell by 13.6% year-on-year due to a contracting market, although some projects showed potential for future growth [22] - KT Cloud revenue grew by 15.5% year-on-year, supported by increased data center usage and cloud-based CDN traffic [22] Company Strategy and Development Direction - The company aims to transition into an AICT company by 2025, focusing on structural profitability improvements and innovation in workforce and business structure [6][9] - A strategic partnership with Microsoft is expected to enhance product offerings, including AI models specialized for Korea and secure public cloud services [10][36] - The company has set a revenue target of above KRW 28 trillion for FY 2025 [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of workforce innovation on operating profit and emphasized the importance of structural improvements for future profitability [8][30] - The company plans to maintain a minimum level of shareholder return while focusing on profit improvement and rationalization of underperforming businesses [31][51] Other Important Information - The company adopted a quarterly dividend policy, with a cumulative dividend of KRW 150 billion paid out up to Q3 2024, and an increase in annual DPS from KRW 1,961 in 2023 to KRW 2,001 in FY 2024 [12][13] - A share buyback and cancellation plan of KRW 1 trillion is set until 2028, with KRW 250 billion planned for this year [13][54] Q&A Session Summary Question: 2025 outlook for revenue, profit, and shareholder return - Management provided a revenue guidance of above KRW 28 trillion for 2025 and indicated that profit estimates would depend on structural improvements and revenue expansion from AICT initiatives [27][29] Question: Timing for recognizing profit from real estate development - Profit from the real estate development will start being recognized in Q1 and Q2 as residents move in starting March [28] Question: AX business strategy and Microsoft partnership - The AX strategy focuses on B2B customers, with plans to launch a Korea specialized secure public cloud and an AI model based on GPT-4 in 2024 [36][40] Question: Future CapEx levels and investments in 5G/6G - CapEx is expected to maintain 2024 levels, with no significant investments in 6G anticipated until 2028 or 2029 [48][49] Question: Shareholder return plans and share buyback - The company plans to maintain a minimum level of shareholder return and confirmed the KRW 250 billion share buyback, with the possibility of similar amounts in subsequent years depending on profit growth [53][54] Question: Cost savings from workforce reduction - The company reported a reduction of 4,400 employees, with 2,700 leaving and 1,700 transferring to a subsidiary, impacting labor costs positively [59][60] Question: Logic behind using subsidiary dividends for shareholder return - Dividends from subsidiaries qualify as resources for shareholder payouts, smoothing out profit fluctuations [62]

Core Viewpoint - KT is identified as a strong value stock with a Zacks Rank of 1 (Strong Buy) and an A for Value, indicating it is likely undervalued in the current market [4][9]. Valuation Metrics - KT has a P/E ratio of 6.45, significantly lower than the industry average of 8.39, with a historical range between 6.05 and 18.18 over the past year [4]. - The PEG ratio for KT stands at 0.36, compared to the industry average of 0.57, indicating strong expected EPS growth relative to its valuation [5]. - KT's P/B ratio is 0.68, which is attractive against the industry average of 0.80, with a historical range from 0.42 to 0.70 [6]. - The P/S ratio for KT is 0.47, significantly lower than the industry average of 1.32, suggesting strong sales performance relative to its price [7]. - KT has a P/CF ratio of 2.21, which is favorable compared to the industry average of 4, indicating strong operating cash flow [8]. Investment Outlook - The combination of KT's favorable valuation metrics and strong earnings outlook positions it as an impressive value stock in the current market [9].

Group 1: KT Corporation - KT Corporation is an integrated telecommunications and platform services provider with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 3.5% over the last 60 days [1] - The company has a PEG ratio of 0.36, significantly lower than the industry average of 1.05, and possesses a Growth Score of B [1] Group 2: Life Time Group Holdings, Inc. - Life Time Group Holdings, Inc. is a fitness company that also carries a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 12.2% over the last 60 days [2] - The company has a PEG ratio of 0.60 compared to the industry average of 0.82, and possesses a Growth Score of B [2] Group 3: Twilio Inc. - Twilio Inc. is a customer experience solutions company with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 1.4% over the last 60 days [3] - The company has a PEG ratio of 0.75, lower than the industry average of 1.51, and possesses a Growth Score of A [3]

Core Viewpoint - KT Corp. is identified as a strong momentum stock with a Momentum Style Score of A and a Zacks Rank of 1 (Strong Buy), indicating potential for significant near-term gains [3][4][12] Price Performance - KT shares have increased by 7.51% over the past week, outperforming the Zacks Wireless Non-US industry, which rose by 3.72% during the same period [6] - Over the last month, KT's stock price has risen by 9.27%, compared to the industry's 3.42% [6] - In the last three months, KT shares have appreciated by 10.87%, and over the past year, they have surged by 35.93%, while the S&P 500 has only increased by 5.86% and 27.32%, respectively [7] Trading Volume - KT's average 20-day trading volume is 1,007,013 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, one earnings estimate for KT has been revised upward, while none have been lowered, resulting in an increase in the consensus estimate from $0.85 to $0.88 [10] - For the next fiscal year, one estimate has also moved upwards with no downward revisions during the same period [10] Conclusion - Given the strong price performance, positive earnings outlook, and high Momentum Style Score, KT Corp. is positioned as a promising investment opportunity [12]

Core Viewpoint - KT is currently identified as a strong value stock with a Zacks Rank of 1 (Strong Buy) and an A grade in the Value category, indicating strong investor interest [2]. Valuation Metrics - KT has a Price-to-Book (P/B) ratio of 0.60, which is lower than the industry average of 0.77, suggesting it may be undervalued [3]. - The P/B ratio for KT has fluctuated between a high of 0.70 and a low of 0.42 over the past 12 months, with a median of 0.51 [3]. - KT's Price-to-Cash Flow (P/CF) ratio stands at 1.94, significantly lower than the industry average of 3.85, indicating potential undervaluation based on cash flow strength [4]. - The P/CF ratio for KT has ranged from a high of 2.29 to a low of 1.36 in the past 52 weeks, with a median of 1.66 [4]. Investment Outlook - The combination of KT's attractive valuation metrics and strong earnings outlook positions it as a compelling value stock at this time [5].

Core Viewpoint - The article emphasizes the importance of value investing and highlights KT as a strong value stock based on various valuation metrics [2][7]. Valuation Metrics - KT holds a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating strong potential for undervaluation [4]. - The stock has a P/E ratio of 7.35, significantly lower than the industry average of 9.78, suggesting it is undervalued [4]. - KT's Forward P/E has fluctuated between 5.93 and 7.88 over the past year, with a median of 7.04 [4]. - The PEG ratio for KT is 0.65, compared to the industry average of 0.74, indicating favorable growth expectations relative to its valuation [5]. - KT's PEG has ranged from 0.61 to 2.58, with a median of 0.94 in the past year [5]. - The P/B ratio for KT is 0.59, which is attractive compared to the industry average of 0.95, further supporting the undervaluation thesis [6]. - KT's P/B has varied from 0.41 to 0.61, with a median of 0.47 over the past year [6]. Investment Outlook - The combination of KT's strong earnings outlook and favorable valuation metrics positions it as one of the market's strongest value stocks [7].

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 For the month of September 2024 Commission File Number 1-14926 KT Corporation (Translation of registrant's name into English) 90, Buljeong-ro, Bundang-gu, Seongnam-si, Gyeonggi-do, Korea (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or For ...

The Zacks Wireless Non-US industry appears well poised to benefit from healthy demand trends stemming from the increasing user propensity to stay connected in this digital age. However, high capital expenditures for infrastructure upgrades, margin erosion, supply-chain disruptions due to geopolitical conflicts and high customer inventory levels have dented the industry's profitability. Nevertheless, Orange S.A. (ORAN) , SK Telecom Co., Ltd. (SKM) and KT Corporation (KT) are likely to gain from significant l ...