[Financial Results Preview] Can NTT show 14 consecutive dividend increases in the fiscal year 24 forecast, and what are the positive surprises of the NTT law revisions?

moomooニュース日本株 wrote a column · May 7 21:02

● $Nippon Telegraph & Telephone(9432.JP)$(NTT) will announce financial results for the fiscal year ending 2024/3 on 5/10.
● The consolidated earnings forecast for the full year is sales down 0.6% from the previous fiscal year to 13.60 trillion yen, operating profit up 6.6% to 1.95 trillion yen, net profit up 3.5% to 1.255 billion yen, and EPS to 14 yen 80 sen.NTT DOCOMO, which is under its umbrella, made Monex Securities a consolidated subsidiary in January '24, and sales and profits are expected to increase。
● Stock splits were taken into considerationThe annual dividend is 0.2 yen higher than the previous fiscal year, and dividends are scheduled to be increased for 13 consecutive termsI'm doing it. When financial results are announcedDividend forecasts for the fiscal year ending 25/3 (fiscal year 24) will also be disclosedoutlook.
● The revised NTT Law came into effect in April, and it became possible to change company names and appoint foreign officers.
● According to evaluations by 16 analysts, 43.75% are bullish, 31.25% are slightly bullish, 12.50% are neutral, and 12.50% are slightly bearish, and the overall evaluation is “slightly bullish.”The average target stock price is 199.69 yen, which is 17.6% above the 7-day closing price (169.8 yen)。

[Financial Results Preview] Can NTT show 14 consecutive dividend increases in the fiscal year 24 forecast, and what are the positive surprises of the NTT law re...

Can the fourth quarter spurt hit a record high?
According to NTT's full-year forecast, sales and profit are predicted to decrease and increase compared to the previous fiscal year (fiscal year ending 23/3), which was a record high in both sales, operating profit, and net profit. At the time of financial results for the 3rd quarter (23-4/12), there was an increase in sales and a decrease in profit compared to the previous fiscal year, but due to the expansion of growth fields, further cost reductions, and slimming down non-core assets,Operating profit is expected to increase by 155.7 billion yen from the same period last year for the fourth quarter (fiscal year ending January to March 24) aloneDoing it.

Expectations are also added to making Monex Securities a subsidiary
NTT DOCOMO, which plays a central role in the ICT segment, accounts for over 40% of sales and less than 60% of operating profit according to the earnings forecast for the fiscal year ending 2014/3.
As for DOCOMO's financial results up to the 3rd quarter (23/4/12), although sales of communication services such as mobile communication services declined, sales of other businesses such as system integration services increased, and overall sales and profit increased.

▲Percentage of NTT's earnings forecast for the fiscal year ending 2014/3 by segment

DOCOMO made Monex Securities a consolidated subsidiary in January '24. Monex Securities' financial results for the fiscal year ending 23/3 announced by the Monex Group are sales of 31 billion yen, operating income of 3.275 billion yen, and net profit of 2,596 million yen.It's about 3 months' worth, but NTT can be expected to add to its consolidated results。
Also,It was announced in April '24 that they will collaborate with Amazon on payments and pointsI did it. It has been pointed out that the DOCOMO economic zone, which is based on d points, is a weak point compared to the point economic zone built by each of the 3 other mobile carrier companies, poMovements aimed at improving low int utilizationIt has become.

▲Economic zones and main services provided by mobile carriers

Can you show a dividend increase forecast for 14 consecutive terms in fiscal year 24?
NTT has increased dividends for 12 consecutive terms until the fiscal year ending 23/3,Dividends of 5 yen per share, which will actually increase dividends by 0.2 yen per share for the fiscal year ending 2014/3I'm doing it. At the beginning of the termDividends are expected to increase for 13 consecutive terms if business results move as planned。
What is noteworthy is whether dividend increases for 14 consecutive terms will be shown in the dividend forecast for fiscal year 24 (fiscal year ending 25/3). The company is on HPEnhancing shareholder returns is “one of the most important management issues,” and the basic approach is to implement continuous dividend increases and flexible share acquisitionsIt is listed as.
Also, the following positive elements can be expected in fiscal year 24 compared to fiscal year 23.
Acquired during the previous fiscal yearINTAGE HOLDINGS MONEX SECURITIES ADDITION FOR THE YEARThere is.
Increased demand for data centers with the world's 3rd largest market sharecan be expected.

(Source: NTT IR materials (23/10))

Independently developedCommercialization of the large-scale language model (LLM) “tsuzumi” for domestically produced generative AI began in March '24I did it. As of the same monthConsultations on implementation from over 500 organizationsIt is said that there was.

(Source: Commercial Commencement Presentation Material by NTT, March '24)

Are there any positive surprises in response to the NTT Act revisions?
Due to the revision of the NTT Act in April 24,Obligation to disclose research results abolishedIt was done,Foreign directors can serve up to less than one-third of all directorsWhat happened can be said to be positive by NTT. Due to the amendments,Company name changes for “Nippon Telegraph and Telephone,” “East Nippon Telegraph and Telephone,” and “West Nippon Telegraph and Telephone” were also permitted. Although not necessarily when financial results are announced,There is a possibility that surprise announcements will pop out in the future that are conscious of overseas strategies, such as company name changes or the appointment of foreign directorsis also expected.
Furthermore, in the supplementary provisions of the revised law, it was included submitting a bill to the Diet to consider including the abolition of the NTT Act and take necessary measures such as revisions to the Telecommunications Business Law, including a review of regulations to NTT, around the regular Diet session in 25 based on the results. Depending on future developments, there is also a possibility that it will be a further positive element.

▲NTT's most recent main ratings by securities companies

ー MooMoo News Mark
Sources: NTT and NTT Docomo websites, Monex Group websites, Nihon Keizai Shimbun, Bloomberg, Moomoo

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182948539 : The NTT law revision is a double-edged sword!
It becomes free as a company, but 40% of the shares held by the country are on the market (・_・;)
But if the stock price falls by as much as 20% from the highest price, I wonder if there will be any announcements from the company or president ~
I want something positive, such as making communication devices using optical elements at the Sharp Kameyama Plant.
Even if it's a mikoshi decided within the company or by real politics, the president is the president!
Talk about your dreams, deceive your hopes, and show a bright future.

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