Okinawa Cellular Telephone

Research evidence excerpt

Okinawa Cellular Telephone

Global Markets Research

30 July 2026Okinawa Cellular Telephone

9436.T 9436 JP / EQUITY: JAPAN TELECOMMUNICATIONS

RatingWe raise profit forecasts in light of 27/3 Q1 results Remains Neutral

Target price

Profit levels likely to be boosted by mobile charge hikes and growth in Increased from 2,784 JPY 3,545

long-term subscribers

Closing price JPY 3,730We retain Neutral rating, raise forecasts and target price 30 July 2026

Okinawa Cellular Telephone reported 27/3 Q1 operating profits of ¥5.83bn (up 26% y-y),

Implied upside -5.0%beating our forecast of ¥4.85bn. Profits were boosted more than we had expected by

increases to mobile phone charges for existing au subscribers in August 2025 and existing

UQ Mobile subscribers in November 2025, and we raise our profit forecasts for 27/3

onwards. We raise our fair-value EV/EBITDA multiple based on 27/3 forecasts from 9.0x

Relative performance chartto 11.0x, in line with the Russell/Nomura Large Cap (ex financials) average, to reflect

margin improvements at the mobile phone business as well as the rise in market

valuations, which yields a target price of ¥3,545.

27/3 Q1 operating profits driven by solid growth in total mobile revenues

Okinawa Cellular Telephone reported a healthy 3,000 net subscriber additions in 27/3 Q1,

beating our forecast of 1,500 net adds, thanks to a decline in churn at the au brand,

reflecting a rise in long-term subscribers, and new customer acquisitions at the UQ Mobile

Brand thanks to handset discounting. Total mobile ARPU rose by a substantial 7.3% y-y to

¥5,588 (our forecast: ¥5,370), while total mobile revenues rose 8.3% (our forecast: 4.0%).

This resulted in operating profits at the telecommunications segment rising 23% to

¥5.56bn, beating our forecast of ¥4.85bn.