South Korean, Chinese telcos strongest contenders in Asian telecoms space: analysts

TELCOS in South Korea and China have the potential to generate stronger dividend returns for investors, relative to their peers, thanks to rapid adoption of 5G and benign competitive environments in their markets.

Tough competition in a relatively homogeneous business has made for lacklustre returns in the telecommunications space. The need to upgrade networks without the promise of improved pricing power has also weighed on the financial performances of companies, pushing many to optimise balance sheets by selling assets.

Against this backdrop, Janus Henderson Investors’ Asia equities portfolio manager Sat Duhra said South Korea is the most attractive telco market in his view.