TMT/Internet

• With over 85% of the review period complete, there could be 10 changes for the KOSDAQ 150 Index (KOSDQ150 INDEX) at the December rebalance.
• Even with 10 potential changes, there is sector balance with half the changes in the Information Technology sector. Passive trading impact varies from 0.2-7.7x ADV.
• The potential adds have outperformed the potential deletes and the KOSDAQ150 Index since the start of the review period, though there has been a gentle drift lower since July.

• September 2024 revenues of NT$251.87 billion, an increase of 0.4% MoM and an increase of 39.6% YoY.
• Year to date revenue through September 2024 now totals NT$2,025.85 billion, an increase of 31.9% YoY.
• Anticipating Q4 revenue forecast of $25.7 billion, up 10% QoQ. This would mean full year 2024 revenues of $88.8 billion, a 28.3% YoY increase

• Q3 revenue is expected to reach $22.4-23.2 billion, reflecting strong demand for TSMC’s 3nm and AI-driven technologies. This marks a significant 14.4% increase from Q2’s $20.82 billion, despite global headwinds.
• Operating profit margins are forecasted to be between 42.5% and 44.5%, highlighting TSMC’s efforts to maintain profitability. However, pressures from rising operational costs and competitive advancements remain a challenge.
• EPS is projected at $1.76, up 40% YoY, driven by robust AI chip demand. Despite this, TSMC faces slowing consumer electronics demand, particularly in smartphones, which could affect future growth.

• Arrow distributes semiconductors, electronic components, and IT hardware/software to value-added resellers globally
• With 600 suppliers and 210,000 customers, Arrow simplifies the supply chain process for both parties
• Focus on cheap electronic components with some high-value semiconductors like GPUs; plays a crucial role in aggregating customer demand

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.

• AMD set to become second largest client at TSMC’s US fab, aligning with earlier hints.
• Taiwan launches 3 AI centers for healthcare innovation; NTUH director warns against history repeating itself.
• Telangana aims for increased FDI beyond electronics; India Taiwan Industrial Park progresses as Foxconn unveils new EV models.

1Spatial’s momentum in the US has continued, with the company securing a $1.4m deal with the United States Forest Service (USFS). This is a new Federal government-level deal for the business, building on the momentum 1Spatial has been reporting at state level, where it now has contracts or framework agreements with 21 states (up from 18 at the FY24 year-end).

• Broom, a tech startup empowering Indonesia’s used car showroom ecosystem, has closed a US$25 million Series A extension investment round led by Openspace Ventures.
• AC Ventures, Quona Capital, MUFG Innovation Partners, and PKSHA Capital also participated.
• Additionally, Broom has secured credit facilities from various institutions, including Komunal, Funding Societies Capital, Modalku Finansial Indonesia, Alami, Koinworks, Helicap, and DBS Indonesia, as well as support from several high-net-worth individual investors.

• TeamSolve, a Singapore-based startup developing AI solutions for the industrial and utilities sectors, has completed a US$2.5 million seed financing round anchored by SGInnovate and the US-based early-stage fund for water entrepreneurs Burnt Island Ventures.
• Founded in 2022 by Mudasser Iqbal (CEO), Michael Allen, Ami Preis, and Robin Wong, TeamSolve has developed a generative AI-powered copilot designed for industrial operators. The copilot is a knowledge twin that provides an “accurate”, real-time view of asset health.
• It can also support managers by improving planning for asset renewals and crew dispatch.

• Samsung Electronics (SMSN LI) Q3 preliminary Operating Profit results is 12% below consensus. Company issues rare apology, effectively admitting technology competitiveness falls short.
• SK Hynix (000660 KS) is powering ahead in HBM memory in our view, securing Nvidia 2025 allocations, and industry leading efficiencies.
• A range of factors have created a great opportunity for SK Hynix investment given misunderstood industry dynamics and position at NVIDIA Corp (NVDA US).

• Taiwan Semiconductor (TSMC) – ADR (TSM US) invests over 3.7 billion in Vanguard Intl Semiconductor (5347 TT) to increase its holdings to 27%.
• Taiwanese authorities, specifically the Investment Commission of the Ministry of Economic Affairs, approved Vanguard’s investment in its first 12-inch factory in Singapore yesterday.
• Regarding the outlook for 4Q24, we believe it is still evolving, and our current estimate is a ~5% quarter-on-quarter decline.

• Re-Introducing our weekly Namaste India 2.0. This iteration builds on our earlier version and is designed for investors keen to track developments in India.
• Nuclear power currently contributes less than 2% of India’s total electricity generation, indicating significant room for growth.
• Going ahead, with earnings taking center stage, the high valuations commanded by iShares MSCI India ETF (INDA US) are likely to get challenged.  

• With results due October 15, we expect net sales growth of 29% YoY, bringing 9-month revenue on track to meet full-year guidance.
• Money Forward’s businesses are Japan-centric, creating a steady revenue stream insulated from yen volatility and uncertain global macro conditions.
• By targeting larger corporations, Money Forward aims to unlock substantial cross-selling potential, supporting long-term growth and market penetration.

• CSP leading the development of ASIC accelerators for faster processing, enhancing their technological edge in the market.
• Partnership between Foxconn and Nvidia to build world’s largest GB2000 production line, gearing up for increased demand in the semiconductor industry.
• Taiwan emerging as a key player in the offshore wind industry, forging partnerships with foreign companies and investing in energy storage technology to stay competitive.

• Cerebras Systems, a fast-growing maker of wafer-scale AI chips, which power the world’s largest supercomputers, will reveal IPO terms soon.
• Given the company’s hyper-growth trajectory, $1B+ deal with UAE’s G42 and unique architecture, I expect Cerebras Systems is likely to get a premium valuation.  
• The AI company plans to raise up to $1B while selling stockholders will offer additional Class A shares in this IPO.

• Elan Micro reported September revenue on October 7th; 3Q24 revenue has come in at the high end of management’s guidance.
• Management reiterated that they expect AI PCs to drive a growth acceleration for the PC industry starting in 4Q24E/1Q25E.
• Reiterate Structural Long rating for Elan Micro; the company remains well positioned to benefit from an AI PC-driven PC upgrade cycle.

• Singapore-based electric vehicle (EV) charging operator Charge+ has received an undisclosed sum from TNB Aura to complete its US$8 million Series A round.
• The startup, which operates over 2,000 EV charging points across Southeast Asia, will use the funds to expand its charging infrastructure.
• The startup received an undisclosed sum in a Series A round led by TRIVE Venture Capital in October 2023.

• GoodRx Holdings Inc.’s second quarter 2024 earnings presentation underscored a company benefiting from a complex healthcare environment yet facing substantial challenges that could sway its operational and financial trajectory.
• The report delineated both strengths in strategic execution and hurdles related to broader industry and operational dynamics.
• GoodRx continues to navigate a rapidly evolving healthcare landscape distinguished by significant pressure on pharmacy benefit managers (PBMs), shifting insurer coverage, and increasing consumer cost burden.

• Globalstar recently held its second quarter 2024 earnings call, where the company reported a robust performance with significant gains in several key financial areas.
• Revenue for the quarter reached $60.4 million, marking a 10% increase year-over-year, driven primarily by an 18% rise in service revenue.
• This growth in service revenue is particularly important as it directly enhances the company’s profitability due to inherent operating leverage, demonstrated by a 20% increase in adjusted EBITDA and an improved margin of 54%.

• Intel is struggling, with a dismal stock performance and job cuts
• The company’s risky and capital-intensive strategy may not be sustainable
• The core business is no longer sufficient to support their strategic goals, leading to financial challenges and market share loss.

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• The rally of the Asia Tech sector (+24% YTD) is highly concentrated in a handful of stocks. TSMC is up 64% but Samsung is down -22% YTD. 
• With the exception of AI, end-demand isn’t great. Smartphone up 8% but below 2019-21 level. PC flattish. x86 Server flattish. Telecom capex declining. Automotive electronics declining.   
• AI is the most disruptive trend since Cloud in 2010. Years of increasing Capex are in front of us. But short-term, stocks are properly valued to rich, growth is slowing.

• Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
• Our long-term pre-event candidate CELSYS (3663 JP) has moved to TSE Prime. There will be a TOPIX Inclusion event on 30-Oct-24. The stock has outperformed TOPIX by 43% since July.
• PKSHA Technology (3993 JP) and GENOVA (9341 JP) also moved to the TSE Prime market in September and will be having TOPIX Inclusion events at the end of October 2024.

• Wrkr presented at a RaaS-focused Coffee Microcaps Webinar on 2 August 2024

• Following the upward profit forecast revision announced alongside 2Q FY2024/12 earnings, the CARTA HD’s forward P/E ratio has settled at just over 20x, in line with peer average.
• Over the past one to two fiscal periods, the Company’s share price was underpinned by its proactive shareholder return policy targeting a DOE of 5% while profits were weak, leading to an abnormal P/E ratio.
• However, Sessa Partners believes the Company is entering a phase where further earnings improvement will likely drive a rerate in valuation, as profits have recovered to a reasonable level when assessed on a going concern basis.

Datatec’s trading statement flags a robust performance at group level in H1. Westcon continues to deliver profit growth, Logicalis International delivered a strong increase in profitability while financial performance at Logicalis Latin America has also improved. As a result, management expects H1 underling EPS to be 11–12c, up over 50% year-on-year on a like-for-like basis. Our FY25 estimates are unchanged and look well supported.

• Successes in Thailand give management confidence in significant growth for Gorilla’s revenue and profitability.
• Gorilla has partnered with CS Energy to form an AI-powered strategic alliance aimed at accelerating the development of smart and green cities across Thailand and the broader Southeast Asian region.
• Additionally, Lanner Electronics and Gorilla have announced a joint venture to manufacture next-generation security convergence appliances in Thailand. 

• RaaS has published an update on vehicle subscription business Carly Holdings (ASX:CL8) following the release of its FY24 results which saw a 71% year-on-year increase in revenue to $3.6m, a 40% increase in gross profit to $1.15m and 22% increase in EBITDA loss to $3.57m.
• Carly’s FY24 accounts underline the company’s success in growing fleet and subscriptions but highlights the drag which deploying vehicles as they are acquired necessarily has on the cost base.
• Revenue was again up strongly but so were fleet-related costs, albeit at only slightly over half as much.

• Kinatico presented at a RaaS-focused Coffee Microcaps webinar on 2 August 2024.

• POET Technologies is a startup disrupting the photonics industry with a new technology that eliminates parts of an optical transceiver and replaces them with a single integrated device which is smaller, cheaper, faster, more scalable and with much lower power consumption than the current solutions.
• It has a $50M joint venture with Sanan IC to make and sell optical engines to data centers and telecom.
• Its solution can be produced at wafer scale, eliminating costly manual steps, and allowing it to be easily produced in large quantities and at low cost.

• Cerebras Systems, a high-growth Ai chip maker and hardware company that builds AI supercomputers with scalable architecture, has filed for an IPO on the Nasdaq.
• The AI company plans to raise up to $1B in upcoming IPO. Citigroup and Barclays are the lead bankers on the offering. 
• Cerebras Systems may become the biggest disruptor since NVIDIA. The company’s growth is exceptionally high for any AI chip maker.

• TSMC: +18.6% Premium; Spread Has Returned to Previous Elevated Trading Range
• UMC: +1.5% Premium; Wait for Higher Level Before Shorting the Spread
• ASE: +4.2% Premium; Can Consider Going Long the Spread at Current Level

• Cerebras presently derives up to 87% of its revenue from G42
• Microsoft gatecrashed Cerebras party with a $1.5 billion investment in G42 to “accelerate AI development and global expansion”
• G42 “severed its ties” with China in advance of the Microsoft investment

• The Sep24 Nikkei 225 Rebal was odd. They could have done 3. They did 2. For now, I see 2 IN and 2 OUT for the Mar25 Nikkei 225 Rebal.
• There is also a capping event for Fast Retailing which on mild outperformance could become a double-capping event. 
• There is a bit of a tech bent to potential ADDs. Some Consumer Goods stocks need stock splits to get in. The Committee will regret not adding PPIH last time.

• In August, Shinko Electric Industries (6967 JP) announced that the JIC consortium Tender Offer due to be launched by end-August would be delayed. Next update? January 2025.
• Everyone had expected a delay, but the stock fell. Then tech/AI fell out of bed, Ibiden crashed, China export restrictions noise/pushback caused further upset. But Ibiden and tech are rebounding.
• At 9% it was a raging buy;post-dip at 7% it was good. Now it’s 6+%. Still wide, still interesting, still stable but year-end path dependency… So I still like Ibiden.

• Google’s AI infrastructure spending remains a priority, with capex exceeding $12 billion per quarter, highlighting aggressive expansion in cloud and AI-driven services.
• Competition from Meta and TikTok has pressured Google’s advertising, especially YouTube. Q3 performance will gauge its ability to maintain dominance in digital ads.
• Ongoing antitrust trials pose a long-term risk to Google’s business operations, particularly in search and advertising. Potential regulatory action could impact future growth strategies.

• NVIDIA (NASDAQ: NVDA) is on the brink of yet another significant leap in AI computing with its latest Blackwell GPU, as CEO Jensen Huang recently emphasized in an interview with CNBC.
• Describing the demand as “insane,” Huang noted that Blackwell is already in full production and on track to be released to data centers for AI applications, with consumer availability slated for 2025.
• The company’s growth, particularly in its Data Center division, has been fueled by AI workloads, driven by GPU computing, networking platforms, and accelerated AI demand.

• Reservoir Media, a company known for its engagement with talent and diverse music assets, delivered mixed results in its first quarter of fiscal year 2025.
• Like many companies in the music industry, it is navigating a complex landscape influenced by digital transformations and global market trends.
• On the positive side, Reservoir Media experienced notable growth in its Music Publishing segment, showing a 15% increase in revenue.

• Endava, a global IT services provider, recently reported its earnings for the fourth quarter and the full fiscal year 2024.
• Amid a challenging economic climate, the company underscored its strategic maneuvers and repositioning efforts, all while navigating noticeable headwinds in revenue growth, client demand fluctuations, and transformative industry shifts influenced by advancements in artificial intelligence (AI).
• 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.

• FactSet, a global financial data and software company, recently disclosed its fourth quarter and full-year fiscal 2024 results.
• The company reported an annual organic ASV plus professional services growth of $104 million or 4.8%, a figure aligning with its forecasts.
• Its total annual revenue climbed to $2.2 billion while adjusted operating margin improved to 37.8%, and adjusted earnings per share (EPS) increased to $16.45, evidencing a 12.3% growth.

• The latest earnings for Corpay outlined a comprehensive narrative of the company’s financial performance for the second quarter of 2024, its progress in addressing challenges, and strategic actions aimed at shaping its business landscape.
• Starting with financials, Corpay reported that its Q2 2024 revenue stood at $976 million, marking a 7% increase, excluding the impact from the Russian market.
• The adjusted cash EPS was announced to be at $4.55, up by 14%, also excluding Russia.

• Clear Secure remains steadfast in its commitment to grow its member base, enhance the customer experience, and improve its financial stability, with several significant developments detailed in the fiscal second quarter 2024 earnings call.
• The company reported robust growth, adding 2.3 million new members, and highlighted its innovative projects, like the implementation of new technologies to make travel and identity verification smoother and more integrated.
• 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.

• In a new filing with HKEX, we can see Lalatech’s revenue growth slow
• The company’s grip on CoR loosened, but OpEx growth in H1 was minimal
• Given improving market conditions, we believe Lalatech may finally sell shares

• APAC offshore wind market faces regional competition as Typhoon Krathon spurs AI models to compete for accurate forecasting.
• Ford Lio Ho revamps Kuga lineup in Taiwan’s SUV market post-Krathon, focusing on supply chain resilience amid labor strikes and geopolitical tensions.
• Hyundai Motor plans ambitious battery production strategy while DIGITIMES Research forecasts significant growth in global and Taiwan AI healthcare markets from 2023 to 2030.

• Diodes Incorporated’s second quarter of fiscal year 2024 showcased performance exceeding prior expectations as demand began to recover, particularly noted in the computing market in Asia.
• The improvement in distributor inventory levels, marked by a sequential decrease in channel inventory weeks, was also a positive development.
• The company highlighted significant growth in point-of-sale (POS) across 3C markets (Computers, Communication, and Consumer Electronics), maintaining a steady revenue stream from automotive and industrial products which collectively accounted at 41% of total revenue.

• JFrog’s second quarter 2024 financial results highlight a scenario of mixed outcomes that underscore the robust yet challenging aspects of its operational and financial maneuvers.
• JFrog’s CEO, Shlomi Ben Haim, and CFO, Ed Grabscheid provided detailed insights into the company’s performance and strategic pivots intended to harness emerging market opportunities and address existing challenges.
• 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.

• MACOM’s third fiscal quarter 2024 financial results exhibit both strengths and areas of concern, offering a mixed bag for potential investors.
• The company reported a revenue of $190.5 million with an adjusted EPS of $0.66 per diluted share, marking a positive trend in turnover buoyed by sequential growth in the Data Center and Telecom segments.
• This financial performance was complemented by an impressive generation of over $40 million in free cash flow and an ending cash position of $521 million in cash and short-term investments.

• Plexus Corp. delivered a robust fiscal third quarter 2024 with revenues of $961 million, aligning with guidance.
• Key sector performance varied, with particular strength in Aerospace and Defense, though tempered by industrial sector declines due to design changes and customer delays in new product introductions.
• Despite these fluctuations, non-GAAP operating margins rose impressively to 5.8%, surpassing expectations due to increased efficiency and solid cost management.

• Sprinklr recently provided an update on its financial performance for the second quarter of the fiscal year 2025.
• During this period, the company reported an 11% year-over-year growth in total revenue, amounting to $197.2 million, with subscription revenue growing 9% year-over-year to $177.9 million.
• Moreover, the company generated $15.2 million in non-GAAP operating income, resulting in an 8% non-GAAP operating margin for the quarter.

• UScellular’s second-quarter earnings reflect a phase of strategic adjustments and operational rigor aimed at realigning the company’s core business and addressing long-term shareholder value.
• Key developments include the pending sale of UScellular’s wireless operations to T-Mobile, a move poised to reshape the company’s strategic focus while retaining significant assets like its towers and a portion of its spectrum.
• The financial results from the quarter showed solid progress, particularly in adjusted EBITDA, which saw double-digit growth attributed to improved operational efficiency and prudent financial management.

• Axcelis Technologies, Inc. recently disclosed its financial results for the second quarter of 2024, revealing a combination of both robust achievements and projected challenges that could influence investor sentiment.
• The company reported revenue of $257 million, surpassing expectations chiefly due to a favorable conversion of evaluation units into revenue and consistent high demand for its silicon carbide implantation systems.
• Earnings per diluted share were also strong, amounting to $1.55, reflecting solid execution across the board.

• Yelp Inc. recorded a mixed performance in the second quarter of 2024, highlighting several strategic initiatives and financial metrics that provide a nuanced picture of its current positioning and future prospects.
• The company achieved a 6% year-over-year increase in net revenue, amounting to $357 million, surpassing its own forecast marginally.
• This growth was underpinned by the introduction of over 20 new features and updates, emphasizing Yelp’s continued focus on a product-led strategy.

• Commvault’s fiscal first quarter of 2025 signaled a robust beginning to the year, reflecting significant growth across various metrics.
• The company reported a 13% increase in total revenue, reaching $225 million, complemented by a 17% rise in total Annual Recurring Revenue (ARR) to $803 million.
• Noteworthy was the Subscription ARR, which saw a 27% acceleration to $636 million, and the SaaS ARR, which surged by 66% to $188 million.

• Government of India raised around US$513m via selling some of its stake in Bharti Hexacom’s IPO in Apr 2024. Its IPO lockup is set to expire soon.
• Bharti Hexacom (BH) is a communications solutions provider offering consumer mobile services, fixed-line telephone and broadband services to customers in the Rajasthan and the Northeast.
• In this note, we will talk about the lockup dynamics and possible placement.

• Facebook’s original vision Pro demo showcased impressive technology with custom silicon and high miniaturization, but it is still far from being a consumer product.
• Comparisons were made between Facebook’s demo and Apple’s vision Pro, highlighting different approaches to hardware development and philosophies.
• Despite debates on shipping products and final designs, both companies are pushing the boundaries of technology and advancing towards a glasses form factor for AR/VR.

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

• The Hang Seng Index is the benchmark index for Hong Kong stocks. It follows a highly-subjective selection process which makes it difficult to predict index changes.
• In this insight, we take a look at a group of names with reasonably high likelihood of being involved in index changes during the next review in December 2024.
• The index changes for the December 2024 index rebal event will be announced after market close on 22nd November 2024.

• BigCommerce, headquartered in Austin, Texas, conducted its earnings call for the second quarter of 2024, marking significant strides in the company’s growth amidst challenging business environments.
• This complex economic landscape presents both opportunities as well as challenges which BigCommerce aims to strategically navigate.
• As reported, BigCommerce’s revenue for the quarter was slightly under $82 million, reflecting an 8% year-over year increase.

• Chongqing Terminus (2471080D CH) is looking to raise about US$300m in its upcoming Hong Kong IPO. The deal will be run by CITIC Securities and Haitong.
• Chongqing Terminus is a leader and pioneer in China’s public realm AIoT (Artificial Intelligence of Things) industry.  
• It leverages its innovative AIoT operating system, TacOS, to provide enterprises, public administrators and public realm participants with full stack AIoT products i.e. software, hardware and services. .

• The third quarter was the first time EB generated traffic from its relationship with TikTok. 
• EB’s traffic has remained elevated, and the attention turns to how many event creators EB was able to generate through the increase in traffic.   
• The number of event creators has declined over the past year due to EB charging for all events posted. The pricing model has changed with EB reintroducing a free option. 

• E Ink and Hanshow collaborate to introduce full-color e-paper technology for retail industry, offering a new innovative solution.
• Taiwan’s energy shift faces grid challenges as the world moves towards net-zero goals, highlighting the need for sustainable energy solutions.
• Foxconn introduces new electric vehicle models and aims to capitalize on industry challenges, showing a shift towards the growing EV market.

• Avnet’s fiscal year 2024 financial results reflect a mixed scenario where robust structural adjustments yielded appreciable outcomes, amidst challenges like softening demand.
• Throughout the year, Avnet managed to attain a revenue of $23.8 billion with earnings per share amounting to $5.43.
• A consistent application of strategic maneuvers in fiscal 2024 has helped the company to counterbalance the impacts of a less favorable demand backdrop which emerged after an initially strong start.

• N-able Inc.’s second quarter earnings highlighted significant developments and achievements while also shedding light on some challenges and strategic shifts in their business model.
• The company reported a revenue of $119.4 million, marking a 13% year-over-year growth, aligning with constant currency metrics.
• Their adjusted EBITDA turned out to be $46.8 million, translating to a 39% margin, which is notably high, showcasing operational efficiency and financial discipline.

• SmartRent, a company at the forefront of smart home technology for rental housing, recently held its Q2 2024 Earnings Call amidst significant leadership changes and a dynamic market environment, presenting a mixed set of results and strategic updates that are crucial for investors to consider.
• The departure of CEO Lucas Haldeman and the suspension of financial guidance were the headline changes.
• The company underscored this move as a strategic pivot necessary to handle the next growth phase, aiming to appoint a leader with a fresh perspective and a strong background in scaling businesses.

• Bloomberg reported that KKR has made a non-binding, preliminary approach to taking ASM Pacific Technology (522 HK) private. ASMPT has been the subject of takeover rumours in the past.
• The trading patterns of the substantial shareholders suggest a willingness to exit. However, past privatisation rumours suggest issues with the offeror matching key shareholders’ price expectations. 
• A binding proposal is unlikely as the timing would be viewed as opportunistic, with the recent market rally eroding a potential takeover premium and ASMPT’s premium multiple compared to peers.

• The second PE rumoured interest in ASMPT in 18 months, with KKR circling.
• Semiconductor M&A has surged in 2024 YTD with a 33% increase in deal activity compared to 2023.
• ASM’s leadership in TCB, potential growth within HBM, expansion at TSM and enabling the Nvidia Blackwell platform are all reasons for M&A interest.

• Reportedly – Bloomberg – KKR has made a non-binding proposal for ASM Pacific Technology (522 HK), the world’s leading back-end semiconductor production equipment supplier. 
• ASMPT’s largest shareholder, ASM International Nv (ASM NA), with 25%, has been the focus of activists for some time to sell its stake. 
• This bid has all the hallmarks of the approach (also cited by Bloomberg) by PAG last year. Which came to nought. From a regulatory standpoint, I can’t see this happening.

• I’m not going to write about the technical side at all, as I expect Dylan Patel’s team at SemiAnalysis to do a much better job than I can do alone.
• However, I want to note some of the funniest aspects because landmines are everywhere for this IPO. Of course, it’s driven by G42, but it’s much worse than you think. Here’s the prelim S-1.
• G42 is pretty much the only customer.

• Apple Set to Launch iPhone SE 4 and Updated iPad Air in Early 2025: Key Developments to Watch
• META’s Orion AR Glasses: Next Major Computing Platform After the Smartphone?
• Apple Supply Chain Monitor: Key IPhone Suppliers Didn’t Rally With Apple; Opportunity for Rebound?

• Arena Bilgisayar is Turkey’s second-largest IT distributor led by CEO Serkan Celik, who has successfully turned around the core distribution business and created value from non-core ventures
• Despite appearing undifferentiated, levered, and expensive on the surface, the company’s valuation is attractive at 1x tangible book value and 5-7x P/E ratio
• With double-digit annual growth, pre-tax returns on capital exceeding 35%, and Turkey’s return to orthodox monetary policy, an investment in Arena could potentially return between 3-5x over the next 5 years, founded in 1991 by former Karma International employees, Arena has a strong history and promising future.

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.

• Wise operates centers in different countries for faster and cost-effective cross-border transactions
• Strong track record of organic growth in a growing market with high Total Addressable Market
• Recent stock declines attributed to cyclical factors, but investors optimistic about Wise’s expanding product offerings and core FX payments supporting revenue growth

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.

• Taiwan’s carbon fee policy is being challenged by local and EU regulations, impacting their offshore wind goals.
• Europe’s data center capacity shortage for the AI race is causing concerns in the region.
• Samsung’s Galaxy Tab S10 series now includes MediaTek chips, bringing new capabilities to the familiar design.

• Key iPhone components suppliers’ share prices have substantially underperformed Apple, particularly Largan Precision, Genius Electronic Optical, and Zhen Ding.
• There are reasons for iPhone 16 upgrade optimism. We also note that key suppliers failed to rally with Apple shares post-Fed rate cut.
• Apple suppliers’ 2025E forecasts haven’t fallen much so far, despite the negative stock market reaction. If negative iPhone 16 reports prove exaggerated, Largan, Genius, and Zhen Ding could rebound.

• Liquid cooling solutions for AI servers are evolving rapidly to provide more efficient and effective cooling for high-performance computing needs.
• L&T Semicon in India plans to mass produce its first chip within the next two years, showing growth and innovation in the semiconductor industry.
• Taiwan is focusing on modular, intelligent, and collaborative robotics solutions for niche markets, with a shift away from humanoids in its approach to robotics.

In our latest Asia Monthly, we discuss the performance of major Asian credit indices and review UST curve movements in September 2024. We also provide a recap of major news and macroeconomic releases, including those from the US, China, India, Indonesia and Japan.

In addition, we summarise the Top/Bottom performers, recent USD bond issuances and rating actions in Asian corporate credit, as well as a list of our recent research. The Asia Monthly publication serves to keep investors updated on developments in the Asian corporate USD bond market.

• XLMedia (XLM) has historically disappointed investors on AIM as a value trap
• Potential catalyst for over 100% upside in next 12 months
• Key factors in place for a turnaround, including cornerstone investor and focus on US gambling market

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.

• NPS will likely use the KRX Value-Up Index as its benchmark, with Long-Term Growth and Value categories likely to adopt it.
• When NPS shifts to the Value-Up Index, KOSDAQ stocks will likely drive significant flow impacts due to their lower overlap.
• These non-overlapping KOSDAQ stocks, attracting over 1 trillion won, could see significant price impacts as funds gradually flow in.

• The SoftBank NAV discount is historically high, which makes it appear optically attractive; despite this, we turn neutral on SoftBank group from our previous positive recommendation, due to its headwinds
• JPY strength is a key challenge, especially since the new Japanese prime minister supports the BoJ normalising monetary policy; this means BoJ tightening whilst many other central banks are easing
• Arm Holdings’ super premium valuation versus its peers is another potential headwind for SoftBank group shares and NAV, combined with the high correlation between Arm Holdings and SoftBank group shares

• TSMC: +14.2% Premium; Can Consider Going Long at Current Level
• UMC: +1.8% Premium; The ADR Headroom Has Decreased Yet Again
• ASE: +5.4% Premium; Short Interest Surging for The Local Shares

• Italian savings shares (azioni di risparmio) are non-voting stocks offering higher dividend yields. They prioritize income over governance influence, appealing to investors who prefer steady returns over company decision-making power.
• Ordinary shares command higher prices due to voting rights and control, while preference shares are valued lower. In Italy, control is highly valued, thus a significant premium for ordinary shares.
• Following mandatory conversions, the two remaining  tradable situations are Danieli (whose mandatory October 2020 conversion seems postponed) and Telecom Italia, trading at a premium awaiting dividends in arrears.

• CE Info Systems (MapmyIndia) (1052633Z IN) is one of the leading Indian players engaged in advanced digital maps, geospatial software and location-based IoT technologies. It launched its IPO in 2021
• Since its IPO, MAPPLS has embarked on a growth journey since then. It also boasts high margins & ROCE due to its asset light model.
• While the balance sheet looks good, one might have to check on the speedy receivables and trend of commission expenses.

• China announced game approval for the September batch. The number of games approved remained at a higher level than 2023.
• The pace of China game approval appears to have accelerated to the same level as pre-tightening.
• Of the companies that we are monitoring, Tencent and Kingsoft got one approval each.

• Samsara is focused on monitoring and optimizing operations through its technology
• Strong revenue growth and market potential attract investors
• Becoming the “system of record” for operational intelligence could lead to increased customer retention and expansion opportunities

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.

• Tier 2 foundry revenue recovery is taking far longer than most expected. 
• Globalfoundries 2024 CapEx is less than one tenth of what SMIC is spending. Even Hua Hong is spending more. This makes investors nervous.
• Globalfoundries CapEx strategy is a pragmatic one and will pay dividends in the years to come

• Intel’s EUR10 billion semiconductor plant in Germany faces delays due to budget battles over chips and batteries, impacting the nation’s technology sector and economic growth.
• Taiwan’s luxury car market growth reflects its prosperous economy, while the country continues to prioritize a nuclear-free energy agenda despite increasing energy needs.
• AI is revolutionizing nuclear energy production, enhancing efficiency and safety, leading to innovative developments in the industry and heightened global interest. StarLux Airlines is boosting Taiwan’s role as a transit hub in Asia amidst evolving global dynamics.

Nano Dimension has agreed to acquire Markforged, a specialist in additive manufacturing (AM) for metal and advanced composites, for cash of $115m. The deal requires regulatory and Markforged shareholder approval, which, if granted, should allow the deal to close by the end of Q125. The combination of Nano Dimension, Desktop Metal (acquisition process underway) and Markforged had pro forma revenue of $340m in FY23. This deal further broadens the product portfolio with the addition of a new printing technology, strengthens Nano Dimension’s position in metal AM and provides greater scale, which should support the path to profitability for the combined group.