Daily Briefs

• This morning, the Nikkei says NTT (Nippon Telegraph & Telephone) (9432 JP) has decided, 5 years after taking Docomo private, to buy out minorities in NTT Data Corp (9613 JP). 
• NTT owns 58%. The article suggests a “30-40% premium” (¥3,900-4,200) “is likely”, with the parent spending ¥2-3trln (¥3,380-5,060) on the deal. The numbers are a bit all over the place.
• It will go limit up today to ¥3,492. A deal should be announced today after the close when NTT Data reports earnings. There’s a cool index event too.

• Swiggy (SWIGGY IN) raised around US$1.35bn in its India IPO in Nov 2024. The lockup on its pre-IPO investors is set to expire soon.
• Swiggy is a business to commerce marketplace company offering users a platform for ordering grocery and household items and food delivery, through its on-demand delivery network
• In this note, we will talk about the lockup dynamics and possible placement.

• Ant Group is considering on listing its overseas unit Ant International in Hong Kong. Ant International contributes approximately 20% to Ant Group’s total revenue.
• Ant International operates four core business lines: Alipay+ (cross-border payment platform), Antom (global merchant acquiring network), WorldFirst (remittance service), and Bettr (digital payment solution).
• Given the growing political to delist Chinese stocks from the US exchanges, there could be a greater political pressure on the Chinese government to approve Chinese IPOs in Hong Kong.

• AMD yesterday reported Q1 2025 revenues of $7.4 billion, up 36% YoY, down 3% QoQ and $300 million above the guided midpoint. Non-GAAP Gross margin was 50%, precisely as guided
• AMD forecasted current quarter revenues of $7.4 billion, flat sequentially, together with gross margin of 43% incorporating the impact of an $800 million charge related to the latest China restrictions
• Enterprise server momentum, both cloud and on premise, is a major tailwind for AMD in 2025, far more so than any traction from its Instinct Accelerators. That comes in 2026.

• 2024 Cash Dividend is NT$28, with payout ratio slightly increased to 83.76%. 2Q25 Guidance Revenue: NT$26.5–27.7bn / US$828–866mn (vs. ~US$830mn in 1Q24), Gross Margin is 37–40% and OPM is 18.5–21.5%.
• 100% of sales and cost are denominated in USD. A 1% appreciation of the  TWD implies a 0.2% decrease in net income.
• 2H25 Outlook: Visibility remains low, and tariffs continue to be the key uncertainty.

• Revenue increased 33.6% YoY to JPY5.2bn, with HENNGE One business revenue at JPY4.9bn (+35.2% YoY).
• Operating profit rose 72.6% YoY to JPY1.1bn, with a margin of 21.5% (+4.9pp YoY).
• Gross profit was JPY4.5bn (+36.8% YoY), and SG&A expenses increased to JPY3.4bn (+28.0% YoY).

• Charter Communications’ first-quarter 2025 performance indicates a balanced mix of positives and challenges.
• From a growth perspective, the company continued to assert its position as a leader in the mobile sector, adding over 500,000 Spectrum Mobile lines during the quarter.
• This growth translates to more than 2.1 million lines added over the past year, reflecting a line growth exceeding 25%.

• Cadence Design Systems, Inc. presented a robust performance in the first quarter of 2025, surpassing guidance across all major financial metrics.
• The company’s revenue grew by 23% year-over-year, with a notable 34% increase in non-GAAP EPS, prompting an upward revision of the annual financial forecast.
• This performance was primarily driven by sustained demand for Cadence’s innovative technologies and solutions.

• Orders increased 17.0% YoY to JPY16.1bn; order backlog rose 51.4% YoY to JPY21.2bn, driven by infrastructure projects.
• Cumulative Q3 sales, operating profit, recurring profit, and net income were 72.1%, 64.2%, 63.8%, and 64.4% of FY06/25 forecast.
• Cloud services sales grew 39.5% YoY to JPY2.5bn; order backlog at JPY10.9bn, up 48.4% YoY.

Datatec previously issued a trading update for FY25 confirming that both Westcon and Logicalis International continued to deliver excellent financial performances in H225, and despite generating lower gross profits year-on-year in FY25, Logicalis Latin America delivered an overall increase in financial performance. Management has now confirmed the ranges it expects to report for EPS, with underlying EPS of 30.0–31.0 cents ahead of our 27.9 cents forecast. We maintain our forecasts pending results on 27 May.