Telco/Internet specialist

Kirk Boodry

Redex Research

Thematic (Sector/Industry)

<ul>
<li>5G-Capable devices now account for 25% of total devices in Japan. So far, 5G take-up appears to be quicker than 4G although that doesn't translate into higher revenue</li>
<li>MVNO subscriptions continue to grow despite former leader Rakuten moving users to its own network. IIJ remains the segment leader</li>
<li>Rakuten Mobile's subscriber woes have been well-flagged but another issue may be ahead as the migration of MVNO subs to the MNO platform has slowed in recent quarters.</li>
</ul>


5G-Capable devices now account for 25% of total devices in Japan. So far, 5G take-up appears to be quicker than 4G although that doesn't translate into higher revenue
MVNO subscriptions continue to grow despite former leader Rakuten moving users to its own network. IIJ remains the segment leader
Rakuten Mobile's subscriber woes have been well-flagged but another issue may be ahead as the migration of MVNO subs to the MNO platform has slowed in recent quarters.


Japan Telecoms - MIC Reports Telecom Subscription Data Including a Key 5G Milestone

<ul>
<li>The Ministry of Industry Affairs and Communications (MIC) has issued a progress report on its mobile spectrum allocations through 2025</li>
<li>There is no change to previous allocation targets of c. 16 GHz but it is worth highlighting again how huge that is versus current industry holdings of 3 GHz</li>
<li>In general, more spectrum is a positive for Japanese mobile operators, especially as airwaves are allocated not auctioned</li>
</ul>


The Ministry of Industry Affairs and Communications (MIC) has issued a progress report on its mobile spectrum allocations through 2025
There is no change to previous allocation targets of c. 16 GHz but it is worth highlighting again how huge that is versus current industry holdings of 3 GHz
In general, more spectrum is a positive for Japanese mobile operators, especially as airwaves are allocated not auctioned


Japan Telecoms - A Reminder on the Regulator’s Spectrum Plans Through FY25

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<strong><a href="https://www.smartkarma.com/entities/kyocera-corp" target="_blank" data-smartkarma-citation="entities:753:1" rel="noopener">Kyocera (6971 JP)</a></strong> is not blowing out the lights versus peers, but it's relatively inexpensive to its history and peers. If Kazuo Inamori's shares are sold, Kyocera can buy them.</li>
<li>
<a href="https://www.smartkarma.com/entities/hang-lung-group-ltd" target="_blank" data-smartkarma-citation="entities:50:1" rel="noopener"><strong>Hang Lung (10 HK)</strong></a> currently trades at a 62% discount to NAV, a level last seen around the Covid lows in May 2020.</li>
<li>Washington and Beijing reach an agreement allowing US regulators access to audits of Chinese companies listed on American exchanges.  However, US regulators remain cautious about the success of the deal.</li>
</ul>



Kyocera (6971 JP) is not blowing out the lights versus peers, but it's relatively inexpensive to its history and peers. If Kazuo Inamori's shares are sold, Kyocera can buy them.

Hang Lung (10 HK) currently trades at a 62% discount to NAV, a level last seen around the Covid lows in May 2020.
Washington and Beijing reach an agreement allowing US regulators access to audits of Chinese companies listed on American exchanges.  However, US regulators remain cautious about the success of the deal.


Last Week in Event SPACE: Kyocera, Hang Lung Group, CSRC/PCAOB Audit Terms, MACA, Nitro Software

Travis Lundy

Equity Bottom-Up

<ul>
<li>Kazuo Inamori (稲盛和夫), founder of <a href="https://www.smartkarma.com/entities/kyocera-corp" target="_blank" data-smartkarma-citation="entities:753:1" rel="noopener">Kyocera Corp (6971 JP)</a> and <a href="https://www.smartkarma.com/entities/kddi-corp" target="_blank" data-smartkarma-citation="entities:639:1" rel="noopener">KDDI Corp (9433 JP)</a> precursor company DDI (Dai Ni Den Den), and former chairman of JAL overseeing restructuring, has passed.</li>
<li>In his own name, he owns 10.212mm shares of Kyocera, and likely other assets. Inheritance tax would be due 10 months from now. </li>
<li>Kyocera is not blowing out the lights compared to peers, but it is relatively inexpensive to its history and peers. If the shares are sold, Kyocera can buy them.</li>
</ul>


Kazuo Inamori (稲盛和夫), founder of Kyocera Corp (6971 JP) and KDDI Corp (9433 JP) precursor company DDI (Dai Ni Den Den), and former chairman of JAL overseeing restructuring, has passed.
In his own name, he owns 10.212mm shares of Kyocera, and likely other assets. Inheritance tax would be due 10 months from now. 
Kyocera is not blowing out the lights compared to peers, but it is relatively inexpensive to its history and peers. If the shares are sold, Kyocera can buy them.


Kyocera (6971 JP) Founder Kazuo Inamori Passes - Implications for Holdings

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

<ul>
<li>Q1 revenue growth was the highest since Q3 17, helped by forex tailwinds and stability in the mobile segment</li>
<li>Core telecom results were also positive as mobile erosion was less intensive than peers on better subscriber growth whilst DX demand has kept enterprise sales healthy</li>
<li>Management did not change full-year guidance but this almost never happens with a Q1 report and we expect this report is enough to nudge consensus higher</li>
</ul>


Q1 revenue growth was the highest since Q3 17, helped by forex tailwinds and stability in the mobile segment
Core telecom results were also positive as mobile erosion was less intensive than peers on better subscriber growth whilst DX demand has kept enterprise sales healthy
Management did not change full-year guidance but this almost never happens with a Q1 report and we expect this report is enough to nudge consensus higher


NTT (Buy) - Q1 22 Results Reaction: Forex Gains Flatter Top-Line; Signs of Mobile Stability

Japan

KDDI CORPORATION provides mobile communication services and sells mobile devices.  The Company also is a broadband provider.

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KDDI Corp (9433 JP)

Japan Telecoms - MIC Reports Telecom Subscription Data Including a Key 5G Milestone

MIC data highlights the rapid proliferation of 5G as capable devices exceed 25% two years after launch. The latest also reiterates mobile strength...

Kirk Boodry

Japan Telecoms - A Reminder on the Regulator’s Spectrum Plans Through FY25

The MIC has published a draft report on its progress towards FY25 spectrum allocations. In general, more spectrum is good for the industry...

Kirk Boodry

Last Week in Event SPACE: Kyocera, Hang Lung Group, CSRC/PCAOB Audit Terms, MACA, Nitro Software

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Kyocera (6971 JP) Founder Kazuo Inamori Passes - Implications for Holdings

Kyocera founder and KDDI "co-founder" Kazuo Inamori has passed away. He has a ¥80bn stake in Kyocera, and Kyocera owns 15% of KDDI. But overhang is...

Travis Lundy

NTT (Buy) - Q1 22 Results Reaction: Forex Gains Flatter Top-Line; Signs of Mobile Stability

This was a solid report with forex-boosted revenue growth and positive signs for consumer mobile (relative outperformance v peers) and DX-related...

Kirk Boodry

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