New Street Research - KDDI Corporation (9433) KDDI (Buy, ¥3,150, +24%) Q1 FY25 Quick Take: Modest start but management expects H2 improvements

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New Street Research

Chris Hoare

EUR 8626.00 For Business Accounts Only

KDDI (Buy, ¥3,150, +24%) Q1 FY25 Quick Take: Modest start but management expects H2 improvements

Q1 results were a touch softer than expected as trends in Business moderated. Tone remains encouraging for mobile to further accelerate in the second half as the impact of new mobile plans and price increase begin to flow through. Guidance remains unchanged. We continue to see good upside surprise in Mobile and stay Buyers with a ¥3,150 price target.

01/08/2025 1 EN

Underlying

KDDI Corporation

KDDI is a telecommunications company. Along with its affiliates, Co. operates in four principal business segments: personal, value, business, and global. Co. is engaged in the sale of mobile handset; and the provision of mobile telecommunication services under "au" brand name, Internet contents, settlement service, and electronic money service for individual customers. Co. offers information and communication technology ("ICT") solution services and data center services for domestic corporate customers, overseas companies and individual customers. Co. is also involved in the call center business, the research and technological development, and the telecommunication facilities maintenance.

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JP3496400007 Japan

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New Street Research

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Analysts

Chris Hoare

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KDDI (Buy, ¥3,150, +24%) Q1 FY25 Quick Take: Modest start but management expects H2 improvements

Japanese Telcos Q4 FY24 review: Inflationary telco market

Takeaways from Meetings with the Japanese Telcos + Rakuten in Tokyo. Downgrade SoftBank to Neutral, stay Buyers of NTT and KDDI.

LUMN 2Q25 Results Review: Solid financials; FCF guidance increased

SATS: Quick thoughts following the 2Q25 Call

SATS 2Q25 Quick Take: Slightly soft results; no spectrum updates, but big LEO news

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