2025-05-29-Jefferies-SBI住信网络银行（7163）_NTT_Docomo以每股4900日元的价格确认交易_7页_100kb

NTT Docomo Deal Summary

Core Content

NTT Docomo has confirmed a deal to acquire SBI Holdings' 66% stake in SBI Sumishin Net Bank (SSNB), leaving Sumi Trust with the remaining 34%. The transaction is expected to take place as SSNB is set to be delisted in the near future. NTT Docomo's rationale for the acquisition includes entering the banking sector, leveraging its mobile network for communication payments, and enhancing its financial services offerings. In addition, NTT will invest ¥110 billion in SBI Holdings to help it repay government rescue funds, which is a key incentive for SBI Holdings to sell its stake.

Key Points

• Deal Details:

  • NTT Docomo acquires 66% of SSNB.
  • SBI Holdings sells its stake, with Sumi Trust retaining 34%.
  • SSNB is expected to be delisted soon.
  • NTT will invest ¥110 billion in SBI Holdings to assist in repaying government loans.

• Reasons for the Deal:

  • NTT Docomo aims to expand into the banking sector, particularly through its mobile network's communication payment capabilities.
  • SSNB's share price has declined due to unmet mortgage issuance targets and a shift in deposits to NISA accounts.
  • SBI Holdings seeks to reduce its financial burden by repaying ¥230 billion in government loans.

• Strategic Collaboration:

  • Initial collaboration will focus on finance and Docomo points (d points).
  • NTT holds Monex securities, which will facilitate smoother money transfers with SSNB.

• Market Context:

  • SSNB's stock traded at a high today, indicating investor interest.
  • The current price is ¥3,285, with a "HOLD" rating.
  • The price target is set at ¥4,300, which is a +31% increase from the current price.

Valuation and Risks

• Valuation Methodology:

  • SSNB is valued using the PBR (Price to Book Ratio) based on the Gordon Growth Model.
  • The target PBR is calculated as (ROE - g)/(COE - g), where ROE is Return on Equity, g is growth rate, and COE is Cost of Equity.

• Key Risks:

  • Decline in deposit and loan growth.
  • SBI Holdings may shift focus to SBI Shinsei Bank.
  • Share price could be affected if a takeover does not occur.
  • Competition from megabanks may impact mortgage rates and market share.

Analysts and Disclosures

• Analysts:

  • Ken Oiwa, CFA and Hiroko Sato, CFA are the equity analysts involved in the report.
  • Both analysts are employed by Jefferies (Japan) Limited, a non-US affiliate of Jefferies LLC, and are not registered with FINRA.

• Important Disclosures:

  • Jefferies may have conflicts of interest due to business relationships with covered companies.
  • This report is not tailored to individual investors and should be considered one of many factors in investment decisions.
  • The report is not an offer to buy or sell securities, but a general discussion of their merits and risks.
  • Jefferies is not liable for any damages or losses resulting from the use of this report.

Investment Recommendations

• Rating: HOLD
• Price Target: ¥4,300 (+31% from current price)
• 52-Week High-Low: ¥5,140 - ¥2,135
• Market Cap: ¥495.3 billion ($3.4 billion)
• Floating Shares: 30.9% with a value of ¥4.65 billion

Distribution of Ratings (Past 12 Months)

Summary of Investment Themes

• NTT Docomo is expanding into the banking sector to leverage its mobile network for communication payments.
• The acquisition of SSNB aligns with NTT's broader financial services strategy.
• The deal is expected to benefit both parties, with NTT providing capital and SSNB gaining strategic support.

Legal and Regulatory Information

• This report is issued by Jefferies entities in various jurisdictions, including the U.S., UK, Germany, Hong Kong, Singapore, Japan, India, and Australia.
• Each entity is subject to its own regulations, and the report is not tailored to individual investors.
• Investors are advised to consult with their own financial advisors and to understand the legal requirements in their jurisdiction.

Final Notes

• The report contains forward-looking statements that are subject to risks and uncertainties.
• Jefferies assumes no responsibility for the financial success of any investment based on this report.
• The information provided is for informational purposes only and should not be considered as investment advice.