KDDI (Buy): Q1 21 Results – Weak Consumer Offset by Solid Corporate Sales

KDDI (Buy) - Q2 21 Results Reaction: Mobile Declines Outpace New Growth Drivers

KDDI (Buy) - New Mobility Offers Expand Consumer Service Offering

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

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

KDDI - Q3 20 Results: On-Track to Meet FY20 Targets but Details on FY21 yet to Come

NTT - Illegally Entertaining Your Regulator Is a Bad Look

Telco/Internet specialist

Kirk Boodry

Redex Research

Equity Bottom-Up

<p>KDDI posted results that were largely in-line with consensus forecasts for Q4 and slightly ahead of our forecasts for FY21. As with recent quarters, operations were characterized by relative weakness in consumer offerings but strength in sales to corporates. The company sent a strong message on shareholder returns with the dividend going from ¥120 to ¥ 125 (the 20<sup>th</sup> straight year of increases) and a ¥150bn share purchase program (both in-line with our expectations). On the aggregate, with all telcos reporting, the incumbents are guiding to financial stability despite regulatory-driven price reductions and a more aggressive investment program by new entrant Rakuten. At 6x EBITDA and 12.5x EPS, KDDI shares look attractive and we remain at Buy.</p>

KDDI posted results that were largely in-line with consensus forecasts for Q4 and slightly ahead of our forecasts for FY21. As with recent quarters, operations were characterized by relative weakness in consumer offerings but strength in sales to corporates. The company sent a strong message on shareholder returns with the dividend going from ¥120 to ¥ 125 (the 20th straight year of increases) and a ¥150bn share purchase program (both in-line with our expectations). On the aggregate, with all telcos reporting, the incumbents are guiding to financial stability despite regulatory-driven price reductions and a more aggressive investment program by new entrant Rakuten. At 6x EBITDA and 12.5x EPS, KDDI shares look attractive and we remain at Buy.

NTT (Nippon Telegraph & Telephone) (9432 JP)

KDDI Q4 20 Results: Slightly Better Guidance and Solid Shareholder Returns

KDDI Corp

KDDI Q4 20 Results: Slightly Better Guidance and Solid Shareholder Returns