汇丰银行-韩国电信业-hold mobile back to growth,but tariff cuts a risk-20170727-hsbc.pdfVIP

27 July 2017   SK Telecom (017670 KS) EQUITIES WIRELESS TELECOMS Hold: Mobile back to growth, but tariff cuts a risk Korea  Mobile service revenue grew 1% after ten quarters of decline, MAINTAIN HOLD with subscriber expansion offsetting ARPU pressure  Raise 2017- 18 profit estimates by 29-49% primarily on higher TARGET PRICE (KRW) PREVIOUS TARGET (KRW) SK Hynix contribution 283,000 265,000  Hold: lift TP by 7% to KRW283,000 (from KRW265,000) on SHARE PRICE (KRW) UPSIDE/DOWNSIDE higher SK Hynix valuation; cautious due to tariff pressure 270,000 +4.8% (as of 26 Jul 2017) Mobile reversed recent declines, while SK Broadband remained solid: Mobile MARKET DATA Market cap (KRWb) 21,801 Free float 72% service revenue grew 1% y-o-y as subscriber expansion offset continued ARPU Market cap (USDm) 19,485 BBG 017670 KS declines, although marketing expenditure was up 7