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. The latest GPUs need a type of rare earth metal called Terbium and there are only 34 companies in the world exploring or producing it. Find the list for free.KDDI Investment Narrative RecapTo 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 PerspectivesTSE:9433 1-Year Stock Price Chart 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 NarrativeDisagree 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.Want Some Alternatives?Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters:We've found 12 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.Uncover the next big thing with financially sound penny stocks that balance risk and reward.The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's. 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.Mobile Infrastructure for Defense and DisasterThe next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.Get the investor briefing before the next round of contractsSponsored On Behalf of CiTech