TMT/Internet

• The P/E ratio has risen above 20x this fiscal year from no more than 13x in the previous four years, reflecting successful restructuring and investor enthusiasm for AI. 
• Profit margins are rising, but remain moderate in absolute terms with room for further improvement. The shares may consolidate, but they do not look overvalued.
• Management is aiming for generative AI sales of ¥50 billion in three years time. This is less than 2% of total sales, but a positive indicator for NEC’s software business.

• A shares were up small on the week. The spivvier the better. HK was up better, especially among the liquid names.
• Net SOUTHBOUND buying was +HK$21.4bn in the fourth post-holiday week vs +HK$17bn the week before. SOUTHBOUND has net bought every day since the end of Chinese New Year.
• The flavour of SOUTHBOUND buying has been high-div SOEs for months and months. That is starting to change slightly. Tencent was a net buy the second week in a row. 

• Even if you were an activist, or a trader with an activism tilt, be long Keisei Electric Railway Co (9009 JP) vs. Oriental Land (4661 JP).
• Reportedly, Singtel (ST SP) is negotiating a sale of Optus. Both Singtel and Optus scotch those rumours. 
• Alumina Ltd (AWC AU) and Alcoa (AA US) enter into a Scheme. As expected. The key question: is CITIC, with 18.9% of shares out, supportive?

• In this insight, we take a look at the Potential ADDs/DELs for the BSE SENSEX, 100, and 200 Indices in the June 2024 index rebal event.
• As things stand, there could be one index change for the SENSEX index but there is room for these names to change during the remainder of the reference period.
• Separately, there could be five ADDs/DELs for the BSE 100 index and six ADDs/DELs for the BSE 200 index.

• Our base case valuation is market cap of US$5.4 billion or target price of US$35.9 per share, which is 20% higher than high end of the IPO price range (US$30).
• We estimate Astera Labs (ALAB US) to generate revenue of $221.3 million (up 91.1% YoY) in 2024 and $304.5 million (up 37.5% YoY) in 2025.
• Many investors are willing to take extra risk to invest in companies such as Astera Labs that could generate strong sales growth amid rush to aggressively expand AI capabilities.

• We anticipate that the guidance upper limit for 1Q24F results may be reached.  
• The outlook is expected to see approximately a 10% QoQ increase in 2Q24F.  
• The recent stock market performance may reflect enthusiasm for Vanguard, despite temporary disregard for the name.

• Taiwan Semiconductor Manufacturing Company Limited (TSMC)’s fourth quarter revenue increased 14.4% sequentially due to the robust ramp-up of its industry-leading 3-nanometer technology.
• The gross margin, however decreased by 1.3 percentage points to 53% primarily due to margin dilution from 3-nanometer technology.
• The operating margin decreased by 0.1 percentage points to 41.6%, slightly ahead of the company’s guidance.Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Cyber Security Cloud Inc (4493 JP) provides customers with subscription services based on software it develops in-house.
• In FY12/23, CSC reported revenue of JPY3.1bn, operating profit of JPY550mn, recurring profit of JPY560mn, and net income attributable to owners of the parent of JPY427mn.
• Cyber Security Cloud, Inc. announced the acquisition of its own shares

• Established in 1950, Nihon Denkei (9908 JP) is an independent specialized trading company with a leading domestic share, by sales, in electronic measuring instruments (source: Nihon Denkei).
• In FY03/23, sales were JPY104.8bn (+14.1% YoY), operating profit was JPY3.7bn (+40.4% YoY), and recurring profit was JPY4.0bn (+31.9% YoY).
• On June 24, 2020, the company announced the key elements of its medium-term plan, INNOVATION 2030.

• Bumble Inc.
• has reported an increase of 13% in its Q4 2023 revenue to $274 million, meeting its financial projections.
• This growth was propelled by a 16% rise in paying users, with contributions from both the Bumble and Badoo apps.

• Oracle Corporation’s Third Quarter Fiscal Year 2024 Earnings presented a mixed but predominantly positive picture.
• Chief Executive Officer Safra Catz noted excellent overall quarterly performance, with quarterly revenue meeting expectations and earnings per share exceeding it by $0.02.
• The company’s infrastructure cloud business (OCI) was singled out for significant praise, as it has become the main factor accelerating the overall revenue growth rate, even outpacing their cloud competitors.

• Peloton Interactive, Inc., the manufacturer and seller of indoor exercise bicycles and treadmills, released its Q2 2024 result addressing several impactful issues regarding market penetration and sustainability.
• During the earnings, several overarching themes were pointed out, such as Tread and Tread+ growth, the strengthening of the all-important second leg to support growth, and the area’s substantial rise in renewal growth.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• This is our first report on Itron Inc., a leading provider of end-to-end solutions that measure, manage and analyze energy and water use.
• The company reported a strong performance for the fourth quarter of 2023 during its recent earnings conference call.
• The company posted year-on-year revenue growth of 23% to $577 million, driven by robust customer demand and improved supply chain balance.

• BZ reported 4Q23 revenue in-line/2.6% vs. our estimate/consensus, non-GAAP NI beat our estimate/consensus by 3.5%/21.9%, mainly attributable to effective cost control measures. 
• We think the competitive advantages over peers grand BZ privilege to enjoy the early sign of hiring demand recovery, whereas overall China job market remains lackluster in early 2024.
• We upgrade the stock from SELL to BUY and rise TP by US$7.5 to US$22/ADS.

• Alibaba Group’s office messaging and meeting app DingTalk is allowing users of Tencent Holdings’ rival social media app WeChat to directly join any meeting initiated on DingTalk without first registering.
• DingTalk users can now share a meeting link with WeChat users, who can enter the meeting within WeChat.
• Previously, DingTalk required participants to download its meeting app and register.

• Astera Labs (ALAB US) is scheduled to debut its IPO on 20 March. The company is offering 17.8 million shares at a price of $27 to $30 per share. 
• Founded in 2017, Astera Labs is a fabless semiconductor company headquartered in Silicon Valley. The company designs and sells semiconductor technology, but the production is outsourced.
• Astera Labs’ major competitors include Montage Technology (688008 CH), Parade Technologies (4966 TT), Broadcom (AVGO US), Credo Technology Group Holding (CRDO US), and Marvell Technology (MRVL US).

• In the previous 4Q follow-up report, we examined “Copilot NAVI,” a service released by JBS in November, which includes videos and summary materials as a guide for enterprise users, for Microsoft 365 Copilot, the AI tool embedded in Microsoft 365 applications, to bring efficient answers to users’ instructions and questions through a chat interface (which can be a daunting challenge).
• JBS followed up in December with interactive workshops to experience Microsoft 365 Copilot before deployment.

•  In this report, we examine JBS enterprise cloud security initiatives, which are a top priority for cloud IT systems managers.

• Pca Corp (9629 JP) develops and sells corporate accounting software and other business systems for small and medium-sized companies.
• Full-Year FY03/23 revenue was JPY13.0bn (-3.0% YoY) due to lower replacement demand for the PCA X series of products, support for which ended in December 2021.
• PCA Corporation has announced changes to its dividend policy and revisions to its dividend forecast.

• Hon Hai’s 4Q23 profit beat consensus and management has become more bullish on 2024E revenue thanks to demand for AI servers.
• Guided 40% YoY growth expected for AI servers; Separately, Hon Hai reportedly could have won a major AI server order from HP Enterprise according to Digitimes.
• Hon Hai shares are finally moving; We see room for continued upside based on re-rating of the company’s valuation. Positive news flow potential through Nvidia’s GTC conference next week.

• After the close on Tuesday, SurgePays reported mixed 4Q23 results.
• Total revenue of $32.3 million exceeded our $32.1 million estimate but was slightly below consensus of $33.6 million.
• However, EBITDA of $3.4 million was below both our estimate and consensus of $6.5 million and $6.9 million, respectively.

• KRX considers a comprehensive change to the Value-up Index scoring system. Weightings emphasize ROE, PER, and FCF while reducing PBR weight.
• KRX considers adopting scoring-based constituent weighting to prevent JPX Prime 150’s issues, but NPS opposes. Float market cap weighting like JPX Prime 150 is contemplated to address concerns.
• Momentum trading in the Value-up initiative will favor low PER and high ROE stocks over low PBR. The semiconductor sector is anticipated to benefit significantly from float market cap-based weighting.

• Brother Industries (6448 JP) has disclosed an unexpected competing hostile offer for Roland DG Corp (6789 JP) at JPY5,200 per share, a marginal 3.3% premium to the Taiyo-sponsored MBO (JPY5,035).
• Unlike the Taiyo offer, the Brother offer is pre-conditioned on regulatory approvals and has a proposed start date of mid-May. The Board is evaluating the Brother offer. 
• The Board’s three options with declining probability are to ask Taiyo for a bump, continue to recommend an unchanged Taiyo offer or recommend the Brother offer. 

• Reportedly (AFR), Singtel (ST SP) is in advanced talks to sell Optus, Australia’s second-largest telco, to Brookfield for A$16bn-A$18bn. 
• SingTel quickly countered there is no impending deal; and “Optus remains an integral and strategic part of the Singtel Group and we are committed to Australia for the long term.”
• Optus’ EBITDA in 3Q24 and 9M24 fell 1.8% and 8.3% in S$ terms. Extrapolating out for FY24E suggests pricing under this (very) indicative Offer of around 7.6-8.6 turns of EBITDA.

• A month ago, Engagement Investor Taiyo Pacific Partners launched an MBO on Roland DG Corp (6789 JP) after having done a takeover of their former sub years ago.
• I said it was too cheap. Machinery company Brother Industries (6448 JP) has decided the same, and has announced a hostile/unsolicited overbid 3.3% higher. Tender to start in May. Fun!!!
• This will almost certainly get bid even higher as people would expect the MBO bidders won’t simply give up. More below.

• The speaker reflects on the excitement and nervousness of facing a new platform shift in technology and the need for continual innovation
• They consider the broader economic impact of technological advancements, like AI, and the potential for breakthroughs in various industries
• The decision to partner with OpenAI was driven by Microsoft’s history of seeking out ambitious technology innovators to collaborate with, even when the outcome is uncertain.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Angel Robotics reported exceptional IPO bookbuilding results. Angel Robotics’ IPO price has been determined at 20,000 won, which is 33% higher than the high end of the IPO price range. 
• A total of 2,067 institutional investors participated in this IPO book building. The demand ratio was 1,157 to 1. Angel Robotics will start trading on 26 March 2024. 
• We remain positive on Angel Robotics. There is likely to be a sharp overshooting of its share price relative to its intrinsic value on the first day of trading. 

• Broadcom reported consolidated net revenue of $12 billion, a 34% increase year-on-year, with semiconductor solutions contributing $7.4 billion, up 4% from the previous year.
• Infrastructure software revenue saw a significant increase of 153% year-on-year, totaling $4.6 billion.
• These improvements are due in part to the contribution from VMware, which has resulted in a sequential jump in revenue by 132%.

• The short-term recovery momentum observed in China and consumer markets.
• The Gen 3 in 4Q23 accounts for about 50% of the production, expected to increase to around 60-70% in 4Q24F.
• Expecting to improve quarter by quarter after reaching the bottom in 1Q24F, and the growth is expected to recover to around 20%+ YoY in 2024F.

• CrowdStrike Holdings, Inc., a leader in the cybersecurity sector, reported an impressive fourth quarter and fiscal year for 2024 during its latest earnings conference call.
• The call highlighted several positive aspects of the company’s performance such as a record net new Annual Recurring Revenue (ARR) of $282 million, reflecting a year-over-year increase of 27%.
• Furthermore, the company achieved a record operating margin of 25%, an improvement of 10 percentage points when compared to the previous year.

• MongoDB reported robust Q4 results, with revenues reaching $458 million, marking a 27% YoY increase and exceeding the high end of the company’s guidance.
• MongoDB’s Atlas product line grew by 34% YoY, accounting for 68% of the company’s total revenue.
• The company also reported a healthy business quarter, owing much of this success to acquiring new workloads from existing Atlas customers.

• The reshuffle results align with expectations, but the decision to list 11 KOSDAQ Global stocks in April is surprising. Local authorities seem to prioritize boosting the derivatives market for liquidity.
• Ecopro Materials’ SSF listing, earlier than expected, attracts attention, potentially leading to an unusual basis pattern, coinciding with a major lockup release on May 17th.
• We should also be wary of a pattern akin to last July’s in KOSDAQ stocks. Spot prices of recent SSFs showed a pronounced short-term uptrend, especially in KOSDAQ, versus KOSPI.

• The increase in automotive revenue in 2023 has led to greater revenue diversification at Immersion (IMMR) reducing some of the variability the Company has historically experienced between quarters
• IMMR reported fourth quarter results better than we were projecting led by an increase in automotive and video game revenue.
• The fourth quarter results did not include the benefits of the settlement with Meta Platforms (META), which causes IMMR’s cash balance to rise further

• Cumulative 3Q sales came in at ¥1,458 mn (-1.2% YoY), operating profit at ¥75 mn (-38.1% YoY), and net profit at ¥76 mn (-37.0% YoY), marking a substantial drop in profit while the top line remained mostly flat.
• This reflects the company’s medium-term management plan, which calls for increased investment in human capital.
• The company disclosed sales by service for the first time in this quarter’s financial results, and cited sales expansion through cross-selling of each service as the key to future growth. 

Key points

• Eventbrite has reduced friction in the customer experience to scale efficiently
• Expanded offerings include reserved seating, merchandise sales, and on-site check-in
• Eventbrite has become a one-stop shop for event creators, increasing customer satisfaction and retention

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Genius Sports has exclusive partnerships with major leagues and is one of two global data providers for sports betting
• The company is expected to benefit from the legalization of online sports betting in Brazil starting July 1st, 2024
• With strong cash position and positive Street EBITDA estimates, Genius Sports has an enterprise value of approximately $1.15 billion

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Host Andrew Walker welcomes Drew Cohen from Speedwell Research onto the podcast to discuss Constellation Software.
• Constellation Software is a holding company founded in 1995 by Mark Leonard, known for acquiring small, niche vertical market software companies at low multiples.
• Constellation Software now has 750-1000 software companies under its umbrella, generating around 8 billion in revenue and 1.1 billion in free cash flow.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Formerly known as WANdisco, now Cirata PLC (CRTA), has faced challenges including trading suspension and a capital raise due to fraud, causing investors to overlook its stock.
• A new management team has taken over and aims to leverage CRTA’s cutting-edge data migration software, powered by the distributed PAXOS algorithm, to achieve ambitious long-term goals.
• CRTA’s technology allows for fast and accurate replication of large, changing datasets with zero downtime and data loss, with potential applications in AI, machine learning, IoT, and data analytics, generating significant value for investors.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• PAR Technology (PAR US), a hospitality technology outfit, and TASK Group Holdings (TSK AU) have entered into a Scheme agreement. 
• PAR is offering A$0.81/share in cash, a 103% premium to last close; or a 50:50 cash/scrip option with an implied value of A$0.98/share, an 145% premium to undisturbed. 
• TASK’s board unanimously recommends the Scheme in the absence of a superior proposal. A Scheme meeting is expected be held in June.

• Globalwafers (6488 TT) is looking to raise up to US$870m in its upcoming global depository receipts (GDRs) offering.
• GlobalWafer recently announced its board’s resolution to issue between 36-45m new shares in the form of GDRs, with the use of proceeds geared towards purchasing of raw materials overseas.
• Similar to previous GDR listings, the deal is a long drawn out process with the firm required to jump through a number of board/shareholder/regulatory approval loops.

• Lianlian DigiTech (2104619D CH)  is a digital payment solution provider in China has filed for an IPO on the Hong Kong Stock Exchange.
• As per news media outlets, the company plans to raise US$500m to help enhance its technological capabilities and expand global operations.
• In this insight, we have discussed the company’s business model, key financials and the outlook on the company.

• GSAT is a telecom infrastructure provider with two core businesses: Mobile Satellite Services and spectrum holdings
• Despite progress and validation from companies like Apple and Qualcomm, the stock price does not reflect the value of the assets
• Recent developments, including partnerships and leadership changes, indicate a promising future for GSAT, despite past challenges and skepticism from institutional investors

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Norbit ASA is a sensor technology company that focuses on niche applications, delivering high returns on invested capital.

• By developing tailored, mission-critical technology, Norbit builds strong client relationships with significant barriers to entry.

• Its shareholder-aligned management fosters an entrepreneurial culture and enables further growth through a decentralized operating model.

• Carly Holdings Limited (ASX:CL8) operates a vehicle subscription business, which it launched in March 2019, leveraging existing operations, strategic relationships and technology.
• Car subscription allows business and retail customers to pay a single monthly fee to access a car for 30 days or more and is an alternative to purchasing or financing a vehicle.
• Continued fleet growth in the December half year drove strong subscription growth which accelerated further in January 2024 with a 12% increase in subscribers from December.

• The graph below shows the trend of capex, depreciation, OP and EBITDA. According to the Company, major capacity expansion capex has peaked out in FY24/3.
• While the peak in depreciation expense will come in FY25/3, the key takeaway here is that management has stuck to its guns and executed on its investment initiatives in the extended MTP targets to FY29/3 aiming to boost capacity for sales up 1.5x (see outline of capex plan on P4).
• Based on our follow-up interview, inventory consolidation at the intermediate distributor level, particularly for consumer electronics in the Greater China region, is still underway in the Jan-Mar quarter, a similar trend observed by global major Texas Instruments. 

• Asteria Corporation develops enterprise software that connects corporate information systems, cloud services, and hardware devices without coding (programming), enabling automated data exchange.
• In FY03/23, revenue increased 13.8% YoY. Revenue in the software business (excluding the design business) remained upbeat, growing 9.4% YoY, while revenue in the design business surged 39.8%.
• Asteria has announced a change in entities in its consolidated group due to sale of shares, as well as revisions to its consolidated earnings and year-end dividend forecasts for FY03/24.

• Carly Holdings Limited (ASX:CL8) operates a vehicle subscription business, which it launched in March 2019, leveraging existing operations, strategic relationships and technology.
• Car subscription allows business and retail customers to pay a single monthly fee to access a car for 30 days or more and is an alternative to purchasing or financing a vehicle.
• Continued fleet growth in the December half year drove strong subscription growth which accelerated further in January 2024 with a 12% increase in subscribers from December. 

1Spatial expects its FY24 results to be at least in line with our forecasts on revenue and EBITDA, driven by continued Enterprise strength, though higher rates and working capital swings affected PBT and net cash. Recent wins, including the €9m utility project, coupled with a robust pipeline and order book, underpin strong FY25 momentum. The transition to higher-margin recurring revenue models and rising SaaS adoption improved the sales mix. In the US, five new annual NG9-1-1 licences demonstrate execution by the new sales head, prompting a partner-led strategy to further accelerate demand. 1Streetworks is gaining traction after the UK Power Networks win and growing paid trial pipeline. Management believes expanding this flagship contract, leveraging efficiency and cost enhancements as a case study, could drive adoption across a potential £400m market opportunity.

• There are no constituent changes for the VanEck Vectors Semiconductor (SMH US) ETF in March but there are a lot of float and capping changes.
• Taiwan Semiconductor (TSMC) – ADR (TSM US) is the largest buy while capping results in NVIDIA Corp (NVDA US) being the largest sell by far.
• Estimated one-way turnover is 8.3% resulting in a round-trip trade of nearly US$3bn. There are a few stocks with more than 0.2x ADV to trade.

• WisdomTree has dropped ESG considerations while selecting stocks for the EMXSOE, CHXSOE and WTEMXC indices.
• That results in a lot of inclusions and fewer deletions across indices that will be implemented at the close on 15 March.
• The round-trip trade across the indices will exceed US$500m with Tencent (700 HK) as the largest buy.

• Massive TSMC Rises 13.8% in Just a Week; Mediatek a Top 10 Gainer for Second Week in a Row
• TSMC (2330.TT; TSM.US): Sales Should Be Gradually Increasing QoQ in 2024F; IPhone 16 Is on Schedule. 
• PC Monitor: Long Dell Vs. Short Acer Update; Dell & HPQ Results Indicate Opportunity in Asus 

• We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
• Highest spreads: APM Human Services Internation (APM AU), Probiotec Ltd (PBP AU), Genex Power Ltd (GNX AU), China Traditional Chinese Medicine (570 HK), Genetron Holdings Ltd (GTH US). 
• Lowest spreads: Tietto Minerals Ltd (TIE AU), CIMC Vehicle Group Co Ltd (1839 HK), Pact Group Holdings (PGH AU), CPMC Holdings (906 HK), Payroll (4489 JP), Welbe Inc (6556 JP). 

• Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
• On the IPO front, Trial Holdings (5882 JP) was hoping for better luck with its listing this time around.
• For placements, it was a very busy week for a change with most regions, apart from Hong Kong, chipping in.

• A shares were up small on the week. HK stock indices were down. 
• Net SOUTHBOUND buying was HK$17.1bn in the third post-holiday week. SOUTHBOUND has net bought every day since the end of Chinese New Year.
• SOUTHBOUND continues to buy high-div SOEs. ex-div is still three months away, and given the new KPIs discussed late January by SASAC official, these still seem to be appropriate targets.

• We believe total revenue will grow by 11% in 4Q23 and 2024.
• We also believe the operating margin will improve slightly in 4Q23 and the following two years.
• Tencent sold weak business to China Literature in December 2024.

• The Quiddity Mainland Connect NORTHBOUND Monitor. Like the A/H Premium Monitor and HK Connect SOUTHBOUND Monitor. Lots of Flows/Position Tables and Charts with which to play.
• Last week saw NORTHBOUND net SELL RMB 3.1bn of A-shares on slightly slower average activity after net buying RMB +63bn the previous five trading weeks. 
• Lower activity into the end of the Two Sessions Week. First net selling by NORTHBOUND in many weeks. 

• The SPX  has been rallying for 4 months, rising >+24%, is is OVERBOUGHT but we see the current pullback as a BUY opportunity.
• The index could pullback another 1-2 weeks before it restarts the rally.
• Price areas to buy are between 5069 and 5000, lower prices may indicate a deeper correction is unfolding (lasting up to 3 weeks down in total).

• We believe total revenue will increase by 17% YoY in 4Q23 and 15% in 2024.
• We also believe KS will see historical high operating profit in 4Q23 and the year 2023.
• We conclude that KS has an upside of 92% and a price target of HK$90. Buy.

• We expect Tencent to report C4Q23 revenue, IFRS op. profit and IFRS net income in line, (3.3%) and (4.9%) vs. consensus.
• The robust topline growth was mainly contributed by fast growing WeChat VA (Video Account) and strong performances of <Dream Star> in December.
• We cut our TP to HK$362 to reflect operating margin decline caused by increased sales and marketing. 

• Dell has outperformed Acer and other Taiwan PC names Asus and MSI by a wide margin. Close Long Dell vs. Short Acer. Dell’s value gap has dissipated.
• Latest indications from Dell and HP highlight that the AI PC’s will drive upgrades from customers, but the PC recovery remains soft. AI PC impact only in 2025E.
• Dell and HPQ’s recent results provide positive color for upcoming Asus, Acer, and MSI results. Trade: Long Asus into its upcoming earnings results.

• Astera Labs, which offers connectivity solutions tailored for AI accelerators, GPUs, FPGAs and other high-performance computing platforms, announced terms for its IPO today.
• California-Based semiconductor company plans to raise ~$392M by offering ~14.8M shares at a price range of $27 to $30. Selling stockholders offer ~3M shares of common stock in this IPO.  
• At the midpoint of the proposed price range, Astera Labs would command a fully diluted market value of $5B, above their last private round of $3.15B.

• The recent earnings of Baidu indicated solid performance for the fiscal year 2023.
• An extremely neutral analysis reveals several positives.
• The total revenue for Baidu Core’s total revenue for the year increased by 8% year-over-year, indicating strong financial resilience.

• Tokyo Electron (8035 JP) is a global manufacturer of semiconductor production equipment (SPE).
• In FY03/23, the company posted revenue of JPY2.2tn, operating profit of JPY617.7bn, recurring profit of JPY625.2bn, and net income attributable to owners of the parent of JPY471.6bn.
• Tokyo Electron Limited announced revisions to its full-year earnings forecast for FY03/24.

• Monolithic Power Systems (MPS) enters 2024 with a cautiously optimistic outlook, following a record revenue of $1.82 billion for the full year of 2023, marking its 12th consecutive year of revenue growth.
• The highlights of MPS’ performance in 2023 were the consistent execution, continuous innovation, and robust customer focus.
• However, the visibility beyond the current quarter remains limited due to uncertain customer ordering patterns reflecting overall economic uncertainty.

• Autodesk demonstrated strong performance in the fourth quarter and full year results of fiscal 2024 with 14% constant currency revenue growth in Q4.
• The report reflects Autodesk’s resilience and discipline manifested through its subscription business model, product diversification, and robust customer base.
• The company’s diversified consumer base spans various regions and industries, enabling balanced growth.

• Over the quarter, Nutanix reported record revenue of $565 million, which surpassed guidance expectations, as well as an impressive annual recurring revenue (ARR) increment of 26% YoY reaching $1.74 billion.
• Besides solid financial performance, the company also accomplished its first GAAP operating profitability in Q2 which showcased the effective workings of their subscription model.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Hewlett Packard Enterprise (HPE) reported that its Q1 2024 revenues did not meet expectations, mainly due to softening in the network industry and the timing of several large GPU acceptances.
• Reported revenue was lower than anticipated largely because of softening demand industry-wide for network, and the timing of several large GPU acceptances was shifted.
• Additionally, HPE did not have the supply of GPU it desired, which constrained revenue growth.

• Elastic’s Q3 fiscal figures demonstrated a robust financial performance, with a revenue growth of 19% YoY and Elastic Cloud growing 29% YoY, a testament to the continued traction in the cloud and consolidation under the Elasticsearch platform.
• Strong sales were driven by customer interest in Generative AI, with the platform being leveraged to develop Generative AI applications, providing an appreciable advantage relative to pure-play vector database vendors.
• Another key factor was platform consolidation, with customers choosing Elasticsearch to displace incumbent solutions for multiple use cases, underscoring the platform’s import within the IT infrastructure context.

• NetApp Inc.
• reported a decent performance in Q3 FY ’24.
• During this quarter, revenue grew above the company’s guidance, driven by the momentum of their expanded all-flash product portfolio.

• The NetEase Q4 earnings revealed several strengths and weaknesses in the company.
• On the positives, NetEase reported a 7% increase in total net revenue for 2023 to RMB 103.5 billion (USD 14.6 billion), driven by momentum across its businesses.
• The revenue growth was attributed mainly to increased revenue contribution from the launch of new games such as Justice Mobile, and sustainably developed titles like Egg Party.

• Seven weeks ago I wrote about Shinko Electric Industries (6967 JP)‘s changing Break/Gap Risk as comps had gained. Shinko was cheap to its main comp and peers vs Announcement Date. 
• Since then, Shinko is +4.1% and direct peer Ibiden Co Ltd (4062 JP) is -14.5%. This has erased Shinko’s underperformance since announcement, and shrunk a 9% spread to 3.3% yesterday. 
• With the spread tighter and tech showing some weakness, I’d be happy unwinding at yesterday’s closing spread (3.3%). 

• The HSCEI serves as a benchmark to reflect the overall performance of the top 50 “Mainland China” securities listed in Hong Kong.
• In this insight, we take a look at the potential index changes and the resultant capping flows for HSCEI index rebal event in June 2024.
• Based on the current data, I see two low-conviction ADDs and two low-conviction DELs.

• Telefonica SA (TEF SM) has decided to make a €2.35/share cash takeover offer to acquire the 5.65% stake in its German unit Telefonica Deutschland Holding (O2D GR) that it does not own. 
• The bidder and parent company, Telefonica, have informed Telefonica Deutschland that, except for FY 2023 dividend, they do not plan to support the distribution of dividends for future financial years.
• The Bidder will apply for delisting thus the shares will soon become illiquid. Accept offer.

• Viavi Solutions (VIAV US) and Spirent Communications (SPT LN) have agreed a cash acquisition via Scheme at 175p (61% premium, 2.5x EV/Fwd Revenue) with just 0.23% irrevocable undertakings. 
• The opportunity seems good enough so that Viavi (BB) will stretch even more its balance sheet, although Silver Lake is providing 1/3rd of the funds needed.
• Gross spread is +0.11%. I believe that shareholders are holding for a sweetening; quite possibly this is a target for activists too. Risk/return seems attractive. Long.

• Zoom Video Communications, Inc reported financial results for its fiscal Q4 and full-year 2024.
• The company’s revenue for the Q4 reached $1.146 billion, up 3% YoY. Zoom’s Enterprise revenue grew by 5% YoY and formed 58% of total revenue.
• The company’s non-GAAP income from operations grew 10% YoY to $444 million.

• Taiwan Semiconductor (TSMC) (2330 TT) is ramping up its CoWoS capacity, with the aim of increasing new capacity by 32k wafer/month in the end of 2024F.
• In the second half of 2024F, the Apple (AAPL US) iPhone 16 will contribute to revenue from shipments.
• The semiconductor industry is expected to rebound in 2024F, with TSMC being one of the leaders.

• Snowflake reported strong annual performance for fiscal 2024 with a 38% YoY product revenue growth reaching $2.67 billion, highlighting the company’s continued growth trajectory.
• The company also saw an expansion of its non-GAAP product gross margins to 77.8% and it reported non-GAAP adjusted free cash flow worth $810 million, indicating robust fiscal health.
• The company’s exceptional bookings in Q4 with $5.2 billion of remaining performance obligations mark a significant 41% YoY growth, this along with 14 Global 2000 new customers, underscores strong customer adoption and trust in Snowflake’s offerings.

• Salesforce announced its Q4 and full year results for fiscal 2024, reporting a strong performance across all its key metrics.
• This signifies an exceptional year for the company, with revenue, margin, earnings per share (EPS), cash flows, and current remaining performance obligations (cRPO) all recording increased growth.
• The overall transformation seen in Salesforce and its industry has been noted to be substantive, primarily driven by the surge in artificial intelligence.

• eBay’s Fourth Quarter 2023 results demonstrated an approximate organic GMV (gross merchandise volume) growth breakdown of roughly 1% for the full year, despite discretionary spending pressure across major markets.
• This resilience was due to an improvement in this metric during each quarter of 2023.
• Focus category GMV indicated a promising upward trend, with growth close to 4%, significantly outpacing the other areas of eBay’s business by around 7 points.

• Lianlian DigiTech (2104619D CH), a digital payment services provider in China, has begun pre-marketing an HKEx IPO. It previously targeted a US$500 million raise.
• We previously discussed the IPO in LianLian DigiTech IPO: The Bull Case and LianLian DigiTech IPO: The Bear Case. 
• The PHIP reinforces the bear case of operating losses, an unconvincing path to profitability, and a volatile FCF with a deteriorating balance sheet.