Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

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Glance at Where Korean Telcos Are With Connected/Autonomous Car

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Equity Bottom-Up

<ul><li>Low price-to-sales, improving operating profit, and slow asset growth relative to its sector</li><li>Expanding KT Long-Term Evolution (LTE) subscriber ratio drives revenue rising from 71% at of end 2015 to almost 75% at end 3Q16; the trend should continue throughout 2017 and beyond</li><li>New 5G technology should boost the quality and speed of the Internet connection for mobile devices to more than 1Gbps; will be developed by KT jointly with Ericsson (ERICB SS). Trial services are expected in 2018</li><li>The stock trades at cheap 17CE* 9.4x PE versus Asian Telecoms at 15.1x but earnings growth expectations are in line</li><li>Risks: Further losses from fixed-line business, political uncertainty</li></ul><p><em>* Consensus Estimates</em></p>

Low price-to-sales, improving operating profit, and slow asset growth relative to its sectorExpanding KT Long-Term Evolution (LTE) subscriber ratio drives revenue rising from 71% at of end 2015 to almost 75% at end 3Q16; the trend should continue throughout 2017 and beyondNew 5G technology should boost the quality and speed of the Internet connection for mobile devices to more than 1Gbps; will be developed by KT jointly with Ericsson (ERICB SS). Trial services are expected in 2018The stock trades at cheap 17CE* 9.4x PE versus Asian Telecoms at 15.1x but earnings growth expectations are in lineRisks: Further losses from fixed-line business, political uncertainty* Consensus Estimates

KT: Phone Firm Is Reaping in Fast-Wireless Subscribers

KT Corp

KT: Phone Firm Is Reaping in Fast-Wireless Subscribers