How KDDI’s Exit From Condominium Power Deals (TSE:9433) Has Changed Its Investment Story

• On 12 December 2025, KDDI’s board approved transferring its bulk power purchasing service business for condominiums to Next Power, a Kansai Electric Power subsidiary, via an absorption-type company split.
• This move reshapes KDDI’s service mix and deepens ties with a major utility group, potentially clarifying focus on core telecom and digital offerings.
• We’ll now examine how exiting the condominium bulk power business and partnering with Next Power could influence KDDI’s broader investment narrative.

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KDDI Investment Narrative Recap

To own KDDI, you generally need to believe its core telecom and digital services can offset a mature domestic market and intense price competition. Exiting the condominium bulk power business looks immaterial to the main near term catalysts around ARPU expansion and 5G monetization, and it does not meaningfully change the key risk that sluggish subscriber growth and rising churn could cap both revenue and earnings progress.

The most relevant recent development here is KDDI’s plan to open the Osaka Sakai Data Center with HPE, using NVIDIA AI infrastructure. While the small power retail exit tidies up non core exposure, the data center initiative ties directly into the push to grow higher value digital and enterprise services, which many investors see as an important offset if mobile subscriber additions remain weak.

Yet against this cleaner story, investors should be aware of rising churn and slower net additions in KDDI’s core mobile base...

Read the full narrative on KDDI (it's free!)

KDDI's narrative projects ¥6,620.6 billion revenue and ¥825.7 billion earnings by 2028. This requires 3.5% yearly revenue growth and about a ¥145.9 billion earnings increase from ¥679.8 billion today.

Uncover how KDDI's forecasts yield a ¥2725 fair value, in line with its current price.

Exploring Other Perspectives

Two Simply Wall St Community fair value estimates span roughly ¥2,725 to ¥4,013 per share, showing how far apart individual views can be. When you weigh those against KDDI’s reliance on ARPU increases with soft subscriber growth, it underlines why many investors are seeking out several perspectives before deciding how resilient the current earnings profile really is.

Explore 2 other fair value estimates on KDDI - why the stock might be worth just ¥2725!

Build Your Own KDDI Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your KDDI research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free KDDI research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate KDDI's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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