Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

NTT (Nippon Telegraph & Telephone) / Event-Driven

<ul>
<li>The three Japanese telecoms reported earnings this week. <a href="https://www.smartkarma.com/entities/softbank-corp" target="_blank" data-smartkarma-citation="entities:27445:1" rel="noopener">Softbank Corp (9434 JP)</a> was disappointing (and slightly confusing). <a href="https://www.smartkarma.com/entities/kddi-corp" target="_blank" data-smartkarma-citation="entities:639:1" rel="noopener">KDDI Corp (9433 JP)</a> was much of a muchness.</li>
<li>
<a href="https://www.smartkarma.com/entities/nippon-telegraph-telephone-corporation" target="_blank" data-smartkarma-citation="entities:623:1" rel="noopener">NTT (Nippon Telegraph &amp; Telephone) (9432 JP)</a>  looked the best, and announced the largest buyback - ¥400bn or 3%. But it comes from a government sale, not the market. </li>
<li>Nevertheless, the company is doing what it promised and executing on its promise. And despite the "bullishness" in the revenue forecast, earnings forecasts to March 2023 look conservative.</li>
</ul>


The three Japanese telecoms reported earnings this week. Softbank Corp (9434 JP) was disappointing (and slightly confusing). KDDI Corp (9433 JP) was much of a muchness.

NTT (Nippon Telegraph &amp; Telephone) (9432 JP)  looked the best, and announced the largest buyback - ¥400bn or 3%. But it comes from a government sale, not the market. 
Nevertheless, the company is doing what it promised and executing on its promise. And despite the "bullishness" in the revenue forecast, earnings forecasts to March 2023 look conservative.


NTT (9432) - Salutary Earnings Salutary Buyback, More to Go

Telco/Internet specialist

Kirk Boodry

Redex Research

Equity Bottom-Up

NTT (Nippon Telegraph & Telephone) / Equity Bottom-Up

<ul>
<li>Q4 results and FY22 guidance are in line with expectations and management is confident it is on track to meet its FY23 ¥370 EPS commitment</li>
<li>Returns to shareholders modestly better than expected with a ¥400bn buyback and the possibility of a further dividend hike later in the year still on the table</li>
<li>We remain positive on NTT shares which trade at an attractive 10-11x EPS with further support from expanding shareholder returns</li>
</ul>


Q4 results and FY22 guidance are in line with expectations and management is confident it is on track to meet its FY23 ¥370 EPS commitment
Returns to shareholders modestly better than expected with a ¥400bn buyback and the possibility of a further dividend hike later in the year still on the table
We remain positive on NTT shares which trade at an attractive 10-11x EPS with further support from expanding shareholder returns


NTT (Buy) - Q4 21 Results Reaction: Steady as She Goes

<ul>
<li>Softbank Corp will meet its mid-term business plan commitment of ¥1,000bn in FY22 operating income but it needs a boost from valuation gains from PayPay to get there</li>
<li>Operationally, it is forecasting a 11% EBITDA decline driven by mobile revenue erosion and higher marketing expense with the lack of a growth contribution from Z Holdings apparent</li>
<li>The good news is the dividend is unchanged.  We expect a better story from NTT and KDDI later in the week but stable returns provide support</li>
</ul>


Softbank Corp will meet its mid-term business plan commitment of ¥1,000bn in FY22 operating income but it needs a boost from valuation gains from PayPay to get there
Operationally, it is forecasting a 11% EBITDA decline driven by mobile revenue erosion and higher marketing expense with the lack of a growth contribution from Z Holdings apparent
The good news is the dividend is unchanged.  We expect a better story from NTT and KDDI later in the week but stable returns provide support


Softbank Corp Q4 21 Results Reaction: Behind the Headlines, Disappointing Guidance

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nippon-telegraph-telephone-corporation" target="_blank" data-smartkarma-citation="entities:623:1" rel="noopener">NTT (Nippon Telegraph &amp; Telephone) (9432 JP)</a> and <a href="https://www.smartkarma.com/entities/ntt-data-corp" target="_blank" data-smartkarma-citation="entities:11232:1" rel="noopener">NTT Data Corp (9613 JP)</a> this morning announced a 1pm joint presser. Imaginations ran wild and NTT went up 12+%.</li>
<li>The reality is more subdued (as it should have been for a during-market-hours-presser) and it involves a restructuring of a small NTT subsidiary which happens to own NTT Data shares.</li>
<li>But it is still positive. It is something of a win-win for both parties.</li>
</ul>



NTT (Nippon Telegraph &amp; Telephone) (9432 JP) and NTT Data Corp (9613 JP) this morning announced a 1pm joint presser. Imaginations ran wild and NTT went up 12+%.
The reality is more subdued (as it should have been for a during-market-hours-presser) and it involves a restructuring of a small NTT subsidiary which happens to own NTT Data shares.
But it is still positive. It is something of a win-win for both parties.


NTT and NTT Data Reshuffle the Deckchairs and Everyone "Wins"

<ul>
<li>NTT and NTT Data will reorganize overseas assets into a new operating company run through NTT Data</li>
<li>The transaction results in little change for consolidated results at NTT Group although segment reporting may change and it will buy up to ¥100bn more of NTT Data</li>
<li>Restructuring could help unlock the potential of Dimension Data which has been a consistent laggard since NTT acquired it in FY11</li>
</ul>


NTT and NTT Data will reorganize overseas assets into a new operating company run through NTT Data
The transaction results in little change for consolidated results at NTT Group although segment reporting may change and it will buy up to ¥100bn more of NTT Data
Restructuring could help unlock the potential of Dimension Data which has been a consistent laggard since NTT acquired it in FY11


NTT (Buy) - An Exciting Day for Data but Not Much Has Changed

Japan

Nippon Telegraph and Telephone Corporation provides a variety of telecommunication services, including telephone, telegraph, leased circuits, data communication, terminal equipment sales, and related services. The Company provides both local and long distance telephone services within Japan.

NTT (Nippon Telegraph & Telephone) (9432 JP)

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NTT (Nippon Telegraph & Telephone) (9432 JP)

NTT (9432) - Salutary Earnings Salutary Buyback, More to Go

NTT (9432) reported salutary earnings, and forecasts to March 2023, and a ¥400bn ToSTNeT-3 buyback from the govt. There is accretion, a div hike,...

Travis Lundy

NTT (Buy) - Q4 21 Results Reaction: Steady as She Goes

We remain positive on NTT shares which trade at an attractive 10-11x EPS with expanding returns to shareholders. Financial guidance for FY22 and...

Kirk Boodry

Softbank Corp Q4 21 Results Reaction: Behind the Headlines, Disappointing Guidance

Softbank Corp will meet its mid-term business plan commitment of ¥1,000bn in FY22 operating income but 11% EBITDA erosion before the impact of one...

Kirk Boodry

NTT and NTT Data Reshuffle the Deckchairs and Everyone "Wins"

NTT and NTT Data Reshuffle the Deckchairs and Everyone Wins. There is likely to be some accounting magic here which could drive BOTH companies'...

Travis Lundy

NTT (Buy) - An Exciting Day for Data but Not Much Has Changed

NTT Data jumped as much as 17% on reports of a joint NTT press conference only to give it all back. NTT isn't buying Data minorities but efforts to...

Kirk Boodry

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