KT - KT Corporation: Wait For Catalysts To Be Realized

• The B2B business is expected to be the key growth driver for KT Corporation in the medium term, despite the fact that the segment's 3Q 2020 financial performance was uninspiring.
• KT Corporation reiterated its new dividend policy of a 50% dividend payout ratio at its 3Q 2020 earnings call, and it also announced a new KRW300 billion share repurchase plan.
• Other catalysts such as the spin-off of certain businesses & assets and earnings growth are needed for the positive valuation re-rating of the stock.
• KT Corporation trades at 2.1 times consensus forward next twelve months' EV/EBITDA, and it offers a consensus forward FY 2021 dividend yield of 5.1%.

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