KDDI: Mar Q Results: Stable Profit Growth and Strong Shareholder Returns; Continued Medium-Term Momentum Confirmed

研报英文原文证据摘录

KDDI: Mar Q Results: Stable Profit Growth and Strong Shareholder Returns; Continued Medium-Term Momentum Confirmed

Update

May 12, 2026 09:55 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MKDDI (9433) | Japan Tetsuro Tsusaka, CFA

Equity Analyst

Mar Q Results: Stable Profit Tetsuro.Tsusaka@morganstanleymufg.comLuyuan Yang, CFA +81 3 6836-8412

Luyuan.Yang@morganstanleymufg.com +81 3 6836-8423

Growth and Strong Shareholder Keiji Nishimura

Research Associate

Keiji.Nishimura@morganstanleymufg.com +81 3 6836-8424

Returns; Continued Medium-

KDDI (9433.T, 9433 JT)

Telecommunications | JapanTerm Momentum Confirmed

Stock Rating Overweight

Industry View In-Line

Price target ¥2,750

Reaction to earnings Shr price, close (May 12, 2026) ¥2,530

Mkt cap, curr, basic (bn) ¥10,593.2

Unchanged In-line Largely unchanged Avg daily trading value (bn) ¥22.4

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Vs. Forecasts: F3/27 profit guidance was largely in line with market expectations.

OP +5% YoY, with high visibility supported by both business growth and pricing

improvements this fiscal year.

Earnings Surprise: Shareholder returns were a key highlight, including a 5%

dividend increase and a ¥300bn share buyback. Total shareholder payout ratio is

close to 100%. As earnings enter a phase of stable growth, KDDI is delivering a very

high level of shareholder returns.

Recommended Action: Stable earnings growth and strong shareholder returns

should continue to support steady share price performance.

Medium-Term Plan: 3-year profit growth: +5% CAGR. Mobile and fixed-line

communications are expected to deliver stable growth as the telecom core business.