JTower Inc - DoCoMo Tower Agreement Is a Milestone

The BIGLY TOPIX April 2022 Rebalance - $20bn One-Way Split Over 3 Months

Strong Telecom Flows in TOPIX FFW Transition Months

NTT Invests in NEC, Belle of the 5G Ball?

Nippon Telegraph and Telephone: Q4 20 Results/FY21 Guidance – A Return to Sustainable Growth

Gravity Works As WeWork Doesn't; Now Plan B

Japan Telecom Sector: FY21 Will Be Tougher and More Competitive but Returns Can Still Rise

Telco/Internet specialist

Kirk Boodry

Redex Research

Equity Bottom-Up

<p>JTower will expand its infrastructure footprint with the acquisition of 71 telecom towers from NTT West. With a tenancy ratio of 2.8, it should be able to extract more value from these assets than NTT and this deal (and possibly others to follow) could provide potential revenue capacity equal to 50% of JTower’s FY20 sales. That is important because JTower trades at elevated levels (30x and 85x our FY21 forecasts for revenue and EBITDA respectively) on expectations of a larger addressable market and this deal is a step in that direction. We do not cover JTower but we track the company as part of our Japanese telecom coverage.</p>

JTower will expand its infrastructure footprint with the acquisition of 71 telecom towers from NTT West. With a tenancy ratio of 2.8, it should be able to extract more value from these assets than NTT and this deal (and possibly others to follow) could provide potential revenue capacity equal to 50% of JTower’s FY20 sales. That is important because JTower trades at elevated levels (30x and 85x our FY21 forecasts for revenue and EBITDA respectively) on expectations of a larger addressable market and this deal is a step in that direction. We do not cover JTower but we track the company as part of our Japanese telecom coverage.

NTT (Nippon Telegraph & Telephone) (9432 JP)

JTower Inc - NTT Tower Deal a Key Step in Expanding Its Addressable Market