Recent Reports

KDDI (Buy) Q4 21 Results Reaction: FY22 Profits Steady and Wide-Ranging Mid-Term Plan

KDDI appears to be weathering market challenges and guidance for modest growth in profitability in FY22 is positive. The company also issued mid-term guidance albeit with a lack of FY24 targets.

IIJ (Buy) – Q4 21 Results Reaction: Reliable Growth and Margin Expansion

IIJ continues to reap the rewards of corporate DX demand. Cloud and security revenue are growing the fastest in two years setting the stage for double-digit FY22 growth with margin expansion and higher dividends

NTT (Buy) – Q4 21 Results Reaction: Steady as She Goes

We remain positive on NTT shares which trade at an attractive 10-11x EPS with expanding returns to shareholders

Softbank Group Q4 21 Results Reaction: The Tech Winter Is Here

This was a rough quarter but that was clearly well flagged as shares fell 8% before the announcement and the discount has widened to 54%. We expect it will stay there until tech values find a bottom.

Softbank Corp (Buy) – Q4 21 results reaction: behind the headlines, disappointing guidance

Softbank Corp will meet its mid-term business plan commitment of ¥1,000bn in FY22 operating income but 11% EBITDA erosion before the impact of one-time PayPay gains is a less attractive look.

NTT (Buy) – An exciting day for Data but not much has changed

NTT Data jumped as much as 17% on reports of a joint NTT press conference only to give it all back. NTT isn’t buying Data minorities but efforts to improve the overseas segment should be positive.

Z Holdings (Neutral) – Q4 21 results reaction: growth pushed back a year; downgrade to Neutral

Guidance for FY22 profitability growth is disappointing and whilst targets for the following year are probably achievable, a material beat is off the table. We move from Buy to Neutral.

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