New Street Research - KDDI Corporation (9433) KDDI (Buy, TP: ¥6,600, +39%) KDDI indicating a structural step up in Share Buybacks going forward; quick thoughts on implications

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New Street Research

Chris Hoare

EUR 9547.00 For Business Accounts Only

KDDI (Buy, TP: ¥6,600, +39%) KDDI indicating a structural step up in Share Buybacks going forward; quick thoughts on implications

KDDI today announced an increase in their share buyback from ¥300-¥400bn this year. On the call, the company indicated that this pace could be maintained at least for next year suggesting a structural increase in share buybacks. Thoughts below.

01/11/2024 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

Provided by our team of experienced analysts, our work is idea driven, based on independence of thought, sector expertise, and firmly focussed on fundamentals and valuation.

New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:

Pan European Telecom Services and Cable
US Telecoms, Cable, Satellite and Towers
Global Emerging Market Telecoms
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Pan European Telecom Services and Cable

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Analysts

Chris Hoare

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KDDI (Buy, TP: ¥6,600, +39%) KDDI indicating a structural step up in Share Buybacks going forward; quick thoughts on implications

Japanese Telcos Q2 FY24 review: Stable growth with better profitability; NTT still preferred pick

KDDI (Buy, TP: ¥6,600, +39%) Q2 24 Quick Take: Softer against tougher comparable; Share repurchase upsized to ¥400bn was a positive catalyst

LG Uplus (Buy, TP: KRW 19,000, +71%) New Corporate Value Up Plan, modestly positive

BEKE 3Q24 Results: Favorable Policy Measures to Drive Meaningful Sequential Recovery in 4Q

PDD 3Q24 Results: Investments to Drag Near Term Margins

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