[Financial Results Preview] NTT supports “semiconductor of light” development! Expectations are growing that profit plans will be achieved for continuous dividend increases
● $Nippon Telegraph & Telephone (9432.JP)$(NTT)February 8Consolidated financial results for the 3rd quarter (23/4/12) of the fiscal year ending 2024/3 will be announced.
● There has been no progress in discussions over the abolition of the “NTT Law,” which defines the purpose and content of the NTT Group's business,The government will contribute a maximum total of 45.25 billion yen, including subsidies, to the development of “semiconductor of light” technology (photoelectric fusion technology) to be promoted with US Intel and othersGood material came out.
●Second quarter (April-September)Consolidated sales (operating income) are at a record highWhile it was updated,Net profit declined for the first time in 3 years for the April-9 fiscal yearIt was. Full-year sales are expected to decrease 0.6% from the previous fiscal year to 13.60 trillion yen, operating profit is expected to increase 6.6% to 1.95 trillion yen, and net profit is expected to increase 3.5% to 1.255 billion yen. The EPS forecast is 14 yen 80 sen.
● Sales, operating profit, and net profit for the previous fiscal year (fiscal year ended March 23) all reached record highs.Dividends increased for 13 consecutive terms since fiscal 2011It has been done, and cost improvements have progressed this fiscal year as well,If an increase in profit is achieved as planned, an increase in dividends can be expectedSeemably.
● According to evaluations by 16 analysts, 43.75% are bullish, 31.25% are slightly bullish, 18.75% are neutral, and 6.25% are slightly bearish, and the overall evaluation is”Somewhat bullishIt has become”.The average target stock price is 196.56 yen, and there is room for a 6.6% increase from the 2/6 closing price of 183.4 yen. Microwave ranges range from 175 yen to 240 yen.
● There has been no progress in discussions over the abolition of the “NTT Law,” which defines the purpose and content of the NTT Group's business,The government will contribute a maximum total of 45.25 billion yen, including subsidies, to the development of “semiconductor of light” technology (photoelectric fusion technology) to be promoted with US Intel and othersGood material came out.
●Second quarter (April-September)Consolidated sales (operating income) are at a record highWhile it was updated,Net profit declined for the first time in 3 years for the April-9 fiscal yearIt was. Full-year sales are expected to decrease 0.6% from the previous fiscal year to 13.60 trillion yen, operating profit is expected to increase 6.6% to 1.95 trillion yen, and net profit is expected to increase 3.5% to 1.255 billion yen. The EPS forecast is 14 yen 80 sen.
● Sales, operating profit, and net profit for the previous fiscal year (fiscal year ended March 23) all reached record highs.Dividends increased for 13 consecutive terms since fiscal 2011It has been done, and cost improvements have progressed this fiscal year as well,If an increase in profit is achieved as planned, an increase in dividends can be expectedSeemably.
● According to evaluations by 16 analysts, 43.75% are bullish, 31.25% are slightly bullish, 18.75% are neutral, and 6.25% are slightly bearish, and the overall evaluation is”Somewhat bullishIt has become”.The average target stock price is 196.56 yen, and there is room for a 6.6% increase from the 2/6 closing price of 183.4 yen. Microwave ranges range from 175 yen to 240 yen.
![[Financial Results Preview] NTT supports “semiconductor of light” development! Expectations are growing that profit plans will be achieved for continuous divide...](https://sgsnsimg.moomoo.com/feed_image/181569713/b781b4ec6bc53130ad1dede5906450b1.png/bigmoo)
In the first half (second quarter, April-September), NTT DATA's system development and data center business grew. It also contributed to an increase in NTT DOCOMO's sales and financial and marketing support businesses that handle credit cards such as “d cards.” The depreciation of the yen also had a boosting effect of approximately 80 billion yen. Meanwhile, the slump in regional communication businesses such as fixed telephones, and increases in system investment and interest payments became important factors. It was the first decline in profit in 3 years for the first half,Plan to increase profit for the full yearThey are doing it, and President Akira Shimada said”Cost improvement effects will come out in the second half of the fiscal year. I want to cover it with an increase in profit in the second half and achieve the full year planIt says”. Attention is being paid to what extent cost improvements have progressed in the 3rd quarter.
Regarding the “NTT Act,” which defines the NTT Group's business purposes and details, etc., there are many points where NTT interferes with cooperation with other companies,I hope that the same law will be abolished because international competitiveness is lostI'm doing it, but KDDI, Rakuten Mobile, SoftBank, etc.Competitors oppose abolition because the fair competitive environment may be threatenedDoing it. There continues to be no noticeable progress in discussions at the moment. Also, against the backdrop of increased costs such as electricity bills, etc., movements aimed at improving profits are intensifying in the telecommunications industry, such as each company implementing actual price increases in line with the introduction of new plans.
On January 30, the Ministry of Economy, Trade and Industry announced that it will support a maximum of 45.25 billion yen for the so-called “semiconductor of light” (photoelectric fusion technology) development project, which is the core technology of the next-generation communication platform “IOWN (AION)” developed by NTT with major US semiconductor companies Intel, etc. The total project cost will be 47.15 billion yen.Photoelectric fusion technology is a technology that replaces conventional electronic processing with light, and since power consumption can be drastically reduced if incorporated into semiconductors, high expectations are placed on it as data processing volume and power consumption increase.
An investment of approximately 11 billion yen in US May Mobility, which handles autonomous driving technology development, was announced at the same time as the 3rd quarter financial results (23/11/7). After a demonstration experiment with Toyota Motor Corporation, which formed a business and capital alliance in 2020, services for bus and taxi operators began.
In the case where a former temporary employee of the NTT West subsidiary fraudulently brought out approximately 9.3 million cases of customer information, the Okayama Prefectural Police arrested a 63-year-old man on suspicion of violating the Unfair Competition Prevention Law on 1/31. It is believed that the man sold customer information to a roster and made a profit of 20 million yen or more. Future reorganization of management systems and measures for all NTT Group companies are attracting attention.
According to NTT, due to the stock split (25 split) implemented in 23/7, the number of shareholders went from 920,000 (23/3) to 1.46 million (23/9)1.5 times over increase. Also, the ratio of people in their 40s and under has increased by about 4 times, etc.The age structure of individual shareholders has also diversifiedI did it.
![[Financial Results Preview] NTT supports “semiconductor of light” development! Expectations are growing that profit plans will be achieved for continuous divide...](https://sgsnsimg.moomoo.com/feed_image/181569713/8781220287313f64b3265068612094d6.jpg/bigmoo)
―MooMoo News Kathy
Source: Nihon Keizai Shimbun, Bloomberg, NTTIR materials, etc., moomoo
Source: Nihon Keizai Shimbun, Bloomberg, NTTIR materials, etc., moomoo
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
ロダン : It is a domestic basis for telecommunications, and if taken by foreign capital, Japan will come to an end.
181086746 : I wonder what American AT&T will do in the future. Stock prices are still sluggish, but...
(----;)
183225639 : NTT Settlement Cash