Daishin Securities maintained a 'buy' rating for LG Uplus Stocks with a target price of 20,000 won, projecting the company's Q2 (April-June) revenue at 3.9 trillion won (up 2% year-over-year) and operating profit at 330 billion won (up 8% year-over-year). Analyst Kim Hoe-jae cited the company's solid Q2 performance expectations, strengths in wireless services, and data center (DC) business potential as key factors. LG Uplus has demonstrated consistent wireless revenue growth over the past five years, averaging 3.0% annually compared to KT's 2.8% and SK Telecom's 0.1% decline, while the company's data center operations are positioned as an industry dark horse with revenue projected to reach 4.7 trillion won in 2026.
Daishin Securities Projects LG Uplus Q2 Revenue at 3.9 Trillion Won
According to Daishin Securities, LG Uplus is expected to achieve Q2 revenue of 3.9 trillion won (up 2% year-over-year) and operating profit of 330 billion won (up 8% year-over-year). Wireless service revenue is projected at 1.6 trillion won (up 3% year-over-year), with wireless ARPU (average revenue per user) at 358,000 won (up 0.3% year-over-year). The company added approximately 310,000 mobile subscribers since 2025.
LG Uplus Wireless Revenue Grows 3.0% Annually Over Five Years
Kim Hoe-jae, Daishin Securities analyst, stated that wireless revenue has shown higher growth than competitors over the past five years. LG Uplus achieved an annual average increase of 3.0%, while KT recorded 2.8% growth and SK Telecom saw a 0.1% decline. Consumer revenue is expected at 700 billion won (up 4% year-over-year) and enterprise revenue at 500 billion won (up 7% year-over-year), demonstrating consistent growth.
LG Uplus Data Center Revenue Projected at 4.7 Trillion Won in 2026
Data center revenue is projected to reach 4.2 trillion won in 2025 (up 66% year-over-year) and 4.7 trillion won in 2026 (up 12% year-over-year). Kim stated that LG Uplus's DC revenue stands at approximately 3 billion won per MW (megawatt), with rental-focused operations capable of generating around 1.3 trillion won in revenue at 400MW full capacity. The Paju AIDC's GPU rental services and future AIDC operations are transitioning to high-value-added business models, with potential for up to seven times the current 3 billion won per MW level.
LG Uplus Cancels 90 Billion Won in Share Buybacks
Shareholder returns are highlighted as an expected catalyst. The company canceled 80 billion won in treasury shares acquired in 2025 on May 15, and plans to cancel 90 billion won in 2026 (a 12.5% increase). Total shareholder returns are projected to increase from 3.6 trillion won in 2025 to 3.8 trillion won in 2026, yielding approximately 6% returns. The corporate value enhancement plan targets a shareholder return ratio of 40-60%, with total shareholder return ratios of 59% in 2024, 67% in 2025 (approximately 53% excluding one-time items), 53% in 2026, and 53% in 2027. Assuming the upper target of 60%, total shareholder returns in 2026 could reach 4.3 trillion won (700 won per share dividend, 2.9 trillion won in dividends + 1.4 trillion won in treasury shares), with a total shareholder return yield of 6.8%.
LG Uplus closed at 14,960 won on the KOSPI on July 10, down 240 won (-1.58%) from the previous trading day.
FAQ
What is Daishin Securities' target price for LG Uplus Stocks?
Daishin Securities maintained a 'buy' rating for LG Uplus with a target price of 20,000 won, projecting Q2 revenue at 3.9 trillion won (up 2% year-over-year) and operating profit at 330 billion won (up 8% year-over-year).
How does LG Uplus wireless revenue growth compare to competitors?
Over the past five years, LG Uplus wireless revenue grew at an annual average of 3.0%, compared to KT's 2.8% and SK Telecom's 0.1% decline, according to Daishin Securities analyst Kim Hoe-jae.
What are LG Uplus's data center revenue projections?
Daishin Securities projects LG Uplus data center revenue at 4.2 trillion won in 2025 (up 66% year-over-year) and 4.7 trillion won in 2026 (up 12% year-over-year), with potential for high-value-added AIDC business models.
