| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2356.02 | -27 |
| Intrinsic value (DCF) | 999.62 | -69 |
| Graham-Dodd Method | 758.47 | -77 |
| Graham Formula | 2080.80 | -36 |
Okinawa Cellular Telephone Company, a subsidiary of KDDI Corporation, is a leading telecommunications provider in Japan, specializing in mobile phone services and financial solutions. Headquartered in Naha, the company operates primarily in Okinawa, offering telecommunication services, portable phone solutions, and au WALLET prepaid and credit card services. Founded in 1991, Okinawa Cellular leverages its regional expertise and strong backing from KDDI to deliver reliable connectivity and innovative digital payment solutions. As part of Japan's competitive telecommunications sector, the company plays a crucial role in bridging communication gaps in the Okinawa region while contributing to KDDI's broader national network. With a market capitalization of approximately ¥210.5 billion, Okinawa Cellular remains a key player in Japan's Communication Services sector, combining localized service with the technological strength of its parent company.
Okinawa Cellular Telephone Company presents a stable investment opportunity within Japan's telecommunications sector, supported by its solid financials and strategic position under KDDI Corporation. The company reported ¥77.99 billion in revenue and ¥12.13 billion in net income for FY 2024, with a diluted EPS of ¥244.93. Its low beta (0.086) suggests minimal volatility relative to the market, appealing to risk-averse investors. However, its regional focus limits growth potential compared to nationwide competitors. The dividend yield, with ¥120 per share, adds income appeal. Risks include dependency on KDDI and limited diversification beyond Okinawa. Investors should weigh its steady cash flow (¥11.33 billion operating cash flow) against capital expenditures (¥9.51 billion) and modest cash reserves (¥3.16 billion).
Okinawa Cellular Telephone Company benefits from its niche focus on the Okinawa region and integration with KDDI's infrastructure, ensuring competitive service quality and cost efficiencies. Its au WALLET services provide a unique edge in digital payments, differentiating it from pure telecom peers. However, the company faces intense competition from national giants like NTT Docomo and SoftBank, which boast broader coverage, superior economies of scale, and advanced 5G investments. Okinawa Cellular's regional dominance shields it somewhat, but its growth is constrained by geographic limitations. The parent company's support (KDDI) mitigates technology gaps, yet innovation cycles and capex requirements remain challenges. Competitors with stronger balance sheets can outspend on network upgrades, potentially eroding Okinawa Cellular's service differentiation over time. Its competitive advantage lies in localized customer relationships and bundled financial services, but scalability beyond Okinawa is uncertain.