New Street Research - KDDI Corporation (9433) KDDI (Buy, TP: ¥6,500, +50%) Q4 22 Quick Take: Mobile and DX to drive growth in FY23; FY23 guidance a touch light; ¥300bn share repurchase flagged

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New Street Research

Chris Hoare

EUR 9212.00 For Business Accounts Only

KDDI (Buy, TP: ¥6,500, +50%) Q4 22 Quick Take: Mobile and DX to drive growth in FY23; FY23 guidance a touch light; ¥300bn share repurchase flagged

KDDI reported revenue and EBIT which were 1.9% and 1.2% ahead of expectations respectively. Revenue trended strongly (+ 3.9% YoY) driven by its Business segment while EBIT grew 24.9% YoY off a lower base, despite higher Energy costs.

11/05/2023 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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Chris Hoare

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KDDI (Buy, TP: ¥6,500, +50%) Q4 22 Quick Take: Mobile and DX to drive growth in FY23; FY23 guidance a touch light; ¥300bn share repurchase flagged

KDDI (Buy, TP: ¥6,600, +53%) Q4 23 Quick Take: Better mobile trend and a decent sized buyback; FY24 guidance slightly soft

Asia Telco Tour Feedback, Improving growth, ROCE and shareholder remuneration

Japanese Telcos Takeaways from Meetings with the Japanese Telcos + Rakuten in Tokyo. Incumbents still in good shape.

Bible 1Q24 – Foundries: leading-edge strong; Trailing-edge correction playing out.

VEON (Buy, TP: $40, +55%) Thoughts after the call

Reddit (RDDT, Neutral, $54 target) Data licensing tracking our base case after OpenAI deal

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