TMT/Internet

• TSMC expects 2024 semi sector in recovery with 20-25% y/y growth itself, driven by AI customers. By controlling capex, more rooms to raise dividends but no growth for equipment vendors.
• Faster ramp on N3, likely N3E, N3P than competitor’s. TSMC expects 3nm from 6% of sales in 3Q23, 12.7% in 4Q23 to 15% in 2024, 3x y/y increase in 2024.
• TSMC reports a nearly 30% q/q drop on IOT and consumer IC demand and sees weakness on 12″ mature technology despite better demand 8″ specialty technology.

• TSMC reported 4Q23 results at the upper end of its guidance. More importantly, the company guided for low/mid 20% 2024E sales growth and reiterated an expected 15-20% multi-year CAGR.
• The company provided optimistic guidance for the overall semiconductor industry, forecasting 10% growth in 2024E. TSMC expects to grow much faster than the industry, however.
• TSMC is one of our Structural Longs; our NT$760 target implies 29% upside. The latest results make TSMC’s Buy case even more clear, in our view.

• The SE600 index is one of the most widely followed benchmark indices in Europe. This index is rebalanced on a quarterly basis.
• In this insight, we take a look at the potential index changes that could take place between now and the end of the March 2024 index rebal event.
• Based on the latest available data, I expect there to be up to seven index changes in the first quarter of 2024.

• Novatek Microelectronics Corp (3034 TT) had reserved Apple (AAPL US) iPhone 16 Display Driver IC (DDIC) for future shipment since 3Q24F when qualification past.
• Novatek’s outlook is increasing to about 1~5% in 1Q24F, remarked a higher quarter demand than 4Q23.
• It could be a low season in 2Q24F because the rush order shown up around Chinese New Year.  

• Huawei Technologies Co. Ltd. is facing trouble in meeting delivery commitments for the first electric vehicle (EV) it has co-developed with auto partner Chery Automobile Co. Ltd., a possible sign of supply chain challenges for the model.
• Some people who placed orders for the Luxeed S7, which is the first electric sedan marketed under Huawei’s Smart Selection business model, recently complained online that they could not receive their cars within the promised timeframe.
• In an effort to mollify the customers, Luxeed announced Monday on social media that it will provide people who placed orders for the Luxeed S7 between Nov. 28 and Jan. 15 with varying cash compensation capped at 10,000 yuan ($1,403), based on their wait time.

• The revenue/ GM/ OPM/ EPS is USD$19.62bn/ 53%/ 41.6%/ NT$9.21 in 4Q23. The revenue/ GMO/ OPM is US$18-18.8bn/ 52-54%/ 40-42% in 1Q24F guidance.
• TSMC’s sales for 2024F are expected to grow in the low to mid-twenties YoY.
• 2024F is expected to be a relatively healthy year for the high-performance computing (HPC) and artificial intelligence (AI) sectors, with robust demand.

• Shift Inc (3697 JP) reported 1QFY08/2024 results last week. Revenue and OP increased 29.5% and 0.4% YoY to ¥25.1bn and ¥1.8bn respectively.
• Both revenue and OP were below consensus estimates which triggered a more than 25% drop in Shift’s share price over the last 5 days.
• We think the weaknesses in the company’s 1Q earnings were temporary and we expect the company’s earnings to show recovery going forward

• This is our first report on MACOM, a renowned semiconductors manufacturer in the U.S.
• The management of the company is focused on the firm’s performance over the fourth quarter and the full fiscal year of 2023, as well as on prospects for the first fiscal quarter of 2024.
• MACOM reported $150.4 million in revenue for the fourth quarter, with an adjusted EPS of $0.56 per diluted share along with $648 million in revenue and an adjusted EPS of $2.70 for the full fiscal 2023.

• This is our first report on Monday.com, a well-known team management platform for organizations and businesses.
• In the third-quarter fiscal year 2023 earnings, Monday.com reported robust growth, considerable margin improvement, and substantial cash generation.
• The company shares that they achieved a record non GAAP operating margin of 13% and free cash flow margin of 34%.

• The United Microelectronics Corp (2303 TT)’s updated revenue outlook for 1Q24F suggests that it could be relatively flat QoQ..
• UMC’s Asian clients, particularly Mediatek Inc (2454 TT) and Novatek Microelectronics Corp (3034 TT), are experiencing increased demand in 1Q24F.
• On the other hand, European and American clients are more bearish in 1Q24F and have not shown signs of improvement yet.

• Late last week, the TSE announced the changes in FFW for companies which have FY-end in the calendar Q2. Changes at 30 Jan close also include Phased Weighting Changes.
• There are two additions and 61 upweights (including net effect of PWR/PWIs). There are 456 down-weights with two-way flows of about US$1bn. There is a tiny funding trade.
• Visional (4194 JP) and Furuya Metal (7826 JP) are the two adds. Other large dollar upweights are Asahi Intecc (7747 JP) and Anycolor (5032 JP). 

• AEM had a bizarre announcement on Sunday evening the 14th of January 2024: inventory was “lost” on the way to Penang from its Singapore factory.
• Given AEM’s stellar corporate governance reputation up until now, this raises more than a few eyebrows: how is this even possible? 
• 4Q23 results, due in a month, will feature a large restatement of FY23 results and lead to a major earnings loss. Any recovery is delayed into FY25.

• TSMC Results Tomorrow, Interest Will Be Elevated After Taiwan’s Election Result
• AI PC Availability Tight in Taipei? We Visited Taipei’s Guanghua Consumer Electronics Market Over the Weekend
• Alchip Technologies GDR Offering – Has Been Riding on an Unwavering Momentum Over the Past Year 

• This is our first report on Fabrinet, a leading provider of advanced manufacturing services.
• The company reported new quarterly records for both revenue and earnings per share (EPS), while free cash flow also hit a new quarterly high.
• Furthermore, this strong revenue growth contributed to record non-GAAP net income of $2 per share.

• This is our first report on software-based security solutions provider, CyberArk.
• The company had a strong Q3 2023 with its bookings growth accelerating, total bookings significantly outpacing the company’s guidance framework and seeing a rise in demand for its platform.
• In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Key points (machine generated)

• Delivery Hero is a dominant player in the global food delivery industry, operating in 74 countries and serving over 2 billion people with more than 3 billion annual orders.
• The company’s market leadership is crucial for generating strong economic profits in the food delivery sector due to the network effects and scale advantages it provides.
• Delivery Hero’s extensive selection of restaurants and dense delivery fleet enables them to deliver food quickly, maintaining its temperature and at a lower cost compared to competitors. However, despite these advantages, its profit outlook is concerning, casting doubts on its high enterprise value.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points (machine generated)

• Couchbase offers a distributed, NoSQL database as an alternative to traditional relational databases, with three main products: Couchbase Server, Couchbase Mobile, and Capella.
• The company is transitioning to a hosted model, similar to successful companies like MongoDB, ElasticSearch, and Hashicorp, which is expected to accelerate growth and improve efficiency.
• If the transition is successful, Couchbase could see a potential upside of over 25% IRR and benefit from the advantages of NoSQL databases in managing unstructured data, dynamic schemas, and scaling efficiently.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points (machine generated)

• Tower Semiconductor is currently undervalued and presents a compelling opportunity for long-term investors.
• The stock is trading at just a quarter of the price Intel was willing to pay for it, indicating a lack of appreciation by the market.
• The lack of coverage and silence during the Intel deal, as well as being an Israeli company, may deter some investors, but Tower has the potential for significant growth and ongoing capacity expansion projects, making it an attractive investment with the potential for a 3x return over the next three years.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Esker reported FY23 revenue growth of 12%, or 14% in constant currency (cc), at the lower end of its guidance range. New contract wins in Q423 were 38% higher cc than in the prior quarter and 58% higher cc y-o-y, reflecting strong demand in France and the rest of Europe. FY23 operating profitability will take a hit as sales commission for better-than-expected new business is recognised in Q423. As FY24 guidance is more conservative than we expected, we have reduced our FY24 forecasts, resulting in a normalised EPS cut of 7.6%. While current economic conditions are weighing on the volume of transactions processed by Esker’s platform, the strength of new contract wins provides good support for medium-term growth.

• This is our first report on SPS Commerce, the provider of on-demand supply chain management solutions.
• The company’s total revenue increment by 18% in the quarter was notable, and the recurring revenue showed a promising 20% increase.
• In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

• Alchip Technologies (3661 TT) is looking to raise US$415m in its GDR offering. As per the firm, the proceeds from the GDR offering will be used to purchase raw materials.
• Offering 3.7m GDRs, the deal wouldn’t be a very large one for the firm to digest at just 1.6 days of its three month ADV.
• The deal is very well flagged one and momentum on the stock has been very strong.

• The review cutoff date for the March rebalance of the HSIII was 29 December. The changes will be announced on 16 February and become effective after the close 1 March.
• We see a high probability of Zx Inc replacing Flowing Cloud Technology (6610 HK) in the index. There is a lower probability of 4Paradigm (6682 HK) replacing CMGE Tech (302 HK). 
• Capping will result in passives buying Meituan (3690 HK) and selling Tencent (700 HK), Kuaishou Technology (1024 HK), JD.com (9618 HK) and Alibaba Group Holding (9988 HK). 

• The Globalwafers (6488 TT) outlook for 1Q24F is likely to show a slightly negative QoQ revenue trend. However, we anticipate a positive direction from 2Q24F onwards.  
• We have a relatively high conviction for 2024F compared to 2023, indicating upside potential for the Memory and Logic sectors.
• The supply of 12″ raw wafers remains constrained among the top market players, and overcoming this constraint won’t be easy.  

• China Unicom Hong Kong (762 HK) remains inexpensive with respect to parent China United Network A (600050 CH) – its hybrid domestic A-share twin – and to peers.
• Preceding my comments on Unicom, are the current setup/unwind tables for Asia-Pacific Holdcos.
• These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

• In this note, we will look at the Asia Pacific IPO pipeline for 2024, following up with US ADRs, after having looked at HK, India, Japan and Korea earlier.
• This list has been compiled on a best effort basis from tracking the company filings and through various other sources
• The deals you see in this note are only a part of our full IPO pipeline tracker. Feel free to drop us a message for additional information on these IPOs.

• The factor of seasonality will be evolved in 1Q24F, but 2Q24F should be picking up most likely.
• The Semiconductor cycle shall be reaching the bottom and no more correction, to our expectation.  
• The recent changes of Silergy’s management didn’t affect the reality.  

• STAR 50 Index is a tech-focused, blue-chip index in Mainland China which tracks the top 50 largest and most liquid names in the STAR market of the Shanghai Stock Exchange.
• In this insight, we take a look at our expectations for potential ADDs and DELs for the STAR 50 index during the March 2024 index rebal event.
• I currently expect three changes for the STAR 50 index in March 2024.

• Posco DX (022100 KS) rallied 50% following approval of its application to transfer from the KOSDAQ to the KOSPI market. Then the stock dropped 20% following completion of the transfer.
• With L&F Co Ltd (066970 KS) applying for a section transfer a couple of weeks after Posco DX (022100 KS), approval could be imminent. 
• L&F Co Ltd (066970 KS) is up 46% since the start of November, but the stock has performed in line with the average of its peers.

• The New and Better (5mos old) A-H Premium Tracker has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning/volatility in pairs over time, etc.
• SOUTHBOUND flows were net negative (ETFs negative, high-div SOEs positive) and NORTHBOUND flows a small net sell. AH premia rose slightly on average. Especially at narrow premia.
• STILL time to go long Hs vs As for the new year. 52wk wide discounts were just four weeks ago. Wide A/H premia in renewables space look vulnerable.

• In this note, we will look at the Asia Pacific IPO pipeline for 2024, following up with Japan & Korea, after having looked at Hong Kong and India earlier.
• This list has been compiled on a best effort basis from tracking the company filings and through various other sources
• The deals you see in this note are only a part of our full IPO pipeline tracker. Feel free to drop us a message for additional information on these IPOs.

Key points (machine generated)

• E2open provides a comprehensive supply chain management platform, offering solutions for planning, execution, and procurement, making it a major player in the industry.
• E2open has a large customer base and long average tenure, indicating the trust and reliability of their services.
• The vast amount of data gathered from partners enhances E2open’s AI/ML capabilities, allowing for more accurate analysis and forecasting, positioning the company well to meet ongoing demand for efficient supply chain management solutions.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• After 3D Investment Partners bought a large slug of Fuji Soft Inc (9749 JP) in early 2022, the company started a review of governance and capital allocation. 
• The company updated investors in August, and bought in 4 listed subs in November-December 2023. The August update suggested a Q1 2024 decision on use/ownership of real estate.
• The Final Report is due in a month. In the meantime, the stock rallied Friday off a news article suggesting the Board was reviewing take-private proposals. Yes, but…

• 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 – Hollysys Automation Technologies (HOLI US), Shinko Electric Industries (6967 JP), JSR Corp (4185 JP), Probiotec Ltd (PBP AU), Irc Ltd (1029 HK), Orecorp Ltd (ORR AU). 
• Lowest spreads – Tietto Minerals Ltd (TIE AU), T&K Toka Co Ltd (4636 JP), Pact Group Holdings (PGH AU), Benesse Holdings (9783 JP), Taisho Pharmaceutical Holdin (4581 JP). 

• Less than halfway through the review period, we see four changes for the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) at the June rebalance.
• The impact on the potential inclusion ranges from 0.14-6 days of ADV while the impact on the potential deletions varies from 3.6-12 days of ADV.
• There are small shorts on the potential inclusions while short interest on the potential deletions varies from 5-10 days of ADV and 1.7-8.2% of free float.

• SSE 50 and SSE 180, respectively, aim to represent the performance of the 50 and 180 largest and most liquid A-share stocks listed on the Shanghai Stock Exchange.
• In this insight, we take a look at our expectations for potential index changes for SSE 50 and SSE 180 during the June 2024 index rebal event.
• I continue to expect 5 changes for SSE 50 and 18 changes for SSE 180 but some of the names have changed since my last insight.

• Tencent will allow Douyin to broadcast the game Honor of Kings after a four-year ban.
• Dada’s stock plunged after the company released its suspicious auditing result.
• Alibaba’s mobile office app, Dingding, has accumulated 120,000 paying users.

• SOUTHBOUND flows showing momentum tendencies this past week on a single-stock basis, still. 
• SOUTHBOUND saw HK$6.8bn of net OUT-flows in the week to 12 Jan 2024. Total flows were HK$118bn.
• SOUTHBOUND saw large net selling of ETFs (unwinding Week 1) and large net buying of high-div SOEs like CNOOC, China Mobile/Telecom/Unicom, and coal names.

• Fuji Soft Inc (9749 JP) has disclosed that in response to a request from 3D Investment Partners, it has received non-binding privatisation proposals from several private equity funds. 
• A privatisation proposal would facilitate the exit of 3D, the largest shareholder representing 21.45% of outstanding shares, which has waged an activist campaign since 2022. 
• A binding privatisation proposal is challenging as the shares have hit a ten-year high, lofty multiple, and the Board seems to prefer its corporate value enhancement measures.

• Q423 revenues amounted to NT$625,529. In US$ terms, using TSMC’s projected exchange rate of 32, this translates to  $19.55 billion, a ~13% increase QoQ, and a 2% decrease YoY.
• FY 2023 revenues amounted to NT$2,161.74 billion, down 4.5% YoY. In US$ terms, this amounted to $69.1 billion, an 8.8% decrease YoY and the first such YoY decrease since 2009
• While we foresee Q124 revenues being down 5-10% QoQ, we expect full year 2024 revenues to grow in the range of 5-10% YoY. 

• The review period for the next rebalance of a global index kicks off this week and that is where a lot of eyes will be focused.
• There were big inflows to ETFs tracking the Shanghai Shenzhen CSI 300 Inde (SHSZ300 INDEX) while there were redemptions from the Hang Seng H Share Index ETF (2828 HK). 
• Inflows continue for iShares Emerging Markets ex China (EMXC US) while there were outflows from iShares ACWI ETF (ACWI US). 

• 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, a number of large filings over the holidays is somewhat positive for 2024 prospects.
• On the placement front, 2024 picked up where 2023 left off, with Samsung Electronics (005930 KS) leading the way.

• Furuya Metal (7826 JP) and Visional (4194 JP) are expected to be included in the TOPIX index at the end of January 2024. 
• Wilmar International (WIL SP)‘s current implied stub and simple ratio (Wilmar/ Yihai Kerry Arawana Holdings (300999 CH)) are both at all-time highs.
• Reportedly, the mother and two sisters of Samsung Electronics (005930 KS) Chairman Jay Y. Lee plan to sell shares in a block deal worth ~₩2.8tn ($2.1bn billion.

• Like them or despise them. But one thing you can’t do is ignore them. The Super Sevens have become a force to reckon with.
• Super Sevens appear homogenous but exhibit heterogeneity and diversity. They have growth stock like features while at the same time provide value stock like defensiveness.
• Super Sevens aggregate market cap is a staggering USD 12.14 trillion. They comprise 27% of S&P 500 and 55% of the Nasdaq 100 index collectively.

• Results flash: Q4 sales +42%; Adjusted EBITDA at record high of 1.2 billion yen
• Key focus remains Business SaaS where sales rose +52% YoY to 5.5 billion
• Business earnings driven by acquisition of medium-sized corporates (+40% YoY) and higher ARPU (+22% YoY)

• Micron Technology, Inc. exceeded analyst expectations in terms of revenue as well as earnings.
• Although the expectation for 2024 remains relatively consistent, there has been an adjustment in the perspective on DRAM demand growth for 2023.
• In summary, Micron’s management emphasizes a positive trajectory for pricing and financial performance in 2024, attributing it to oversubscription in cutting-edge technologies.

• Nutanix, Inc. exceeded Wall Street’s revenue and earnings expectations, surpassing anticipated results despite a persistent uncertain macro backdrop.
• Exceeding guided metrics, Nutanix achieved significant quarterly revenue of $511 million, marking an annualized run rate surpassing $2 billion for the first time and an impressive 30% year-over-year growth in ARR to $1.7 billion.
• Nutanix announced crucial enhancements to the Cloud platform, fortifying its capabilities against ransomware attacks on unstructured data.

Key points (machine generated)

• The company, referred to as “pumped up,” is seen as a patriotic SPAC, appealing to retail investors who support its mission.
• However, the memo claims that the company’s growth figures are exaggerated and may even be fabricated, questioning the reliability of the stock.
• According to researchers, the stock has a high likelihood of being worthless in the long term, with a projected downside of 65%. Nevertheless, they acknowledge the potential for a short squeeze due to the limited number of shares available for trading.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Adobe Inc. delivered an all-around beat in the fourth quarter.
• The success can be attributed to pioneering innovations in Creative Cloud and Document businesses, positioning Creative Cloud as the preferred platform for content creation globally.
• Creative Cloud had a stellar quarter, generating a significant $3 billion in revenue.

• Peloton Interactive, Inc. delivered a mixed set of results in its most recent results, with revenues above Wall Street expectations but below-par earnings.
• Peloton’s management anticipates a noteworthy upturn in Connected Fitness’s gross margin for the upcoming quarter.
• This positive shift is attributed to the expected leverage of fixed costs resulting from increased unit sales in Connected Fitness.

• Fidelity National Information Services, Inc. delivered a disappointing set of results as they were unable to meet Wall Street’s revenue and earnings expectations.
• Their success is attributed to a 4% organic revenue surge, primarily driven by a remarkable 7% growth in recurring revenue within the Banking and Capital Markets segments.
• The company maintains a strong free cash flow trajectory, achieving an impressive 94% conversion year-to-date and poised to surpass the 2023 target of over 80%.

• NTGR should have ended 2023 on a positive note with demand for wireless routers showing continued pace of recovery after more than two years of sluggish growth.
• NTGR’s focus on higher end products has put greater emphasis on profitability and converting customers to subscribers
• NTGR’s focus on premium priced devices should push profit margins up if it was not for higher cost inventory NTGR is trying to clear out

• IAC had a mixed quarter with on-par revenues and below-par earnings given the impact of the recent market downturn.
• Changes implemented by the company have impacted its position, with an active real estate market proving beneficial for business demand.
• We have further incorporated a sensitivity analysis/ scenario analysis to understand how changes in key assumptions could impact the valuation under 3 scenarios – a base case, a bull case, and a bear case.

• We expect BABA to report CY4Q23 top-line, adjusted EBITA and non-GAAP net income (3.2%), (7.1%) and (3.0%) vs. consensus. 
• We estimate Taobao/Tmall GMV grew 2.4%, but was offset by lower take-rate, we expect;
• BABA’s “Return to Taobao” strategy tilts traffic to low-priced Taobao products to fight PDD for low-priced mindset.

• Over a third of the way through the review period of the June rebalance, we see one potential index change with Wipro Ltd (WPRO IN) in deletion zone.
• There are a bunch of stocks that could be added to the index as a replacement and price changes over the rest of the review period are important.
• Passive trackers will need to trade over 1x ADV and over 7x of delivery volume on the index changes, so there will be decent impact on the stocks.

• The UK Post Office “Horizon Scandal” has blown up, putting Fujitsu’s computer system failure on the front pages and on the agenda of Parliament and Prime Minister Sunak.
• Fujitsu UK has been awarded £6.8bn in public contracts since 2012. The Justice Secretary is  now talking about compensation for the enormous financial and personal damage caused.
• Fujitsu’s share price is coming off a new all-time high reached in December. The amount of compensation and loss of potential future contracts is substantial but uncertain.

Key points (machine generated)

• FLEX is undergoing a strategic shift towards higher-margin markets, which is expected to improve its operating margins and free cash flow.
• The potential spin-off of NEXTracker gives FLEX an opportunity to repurchase shares and enhance shareholder value.
• FLEX’s outstanding shares are expected to further increase shareholder value.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• In this insight, we discuss the potential KOSDAQ150 rebalance candidates in June 2024.
• The following companies are likely candidates to be included in KOSDAQ150 rebalance in June 2024, including LS Materials, Gigavis, and Cafe24 Corp. 
• We also provide a list of 10 companies that are potential exclusion candidates from KOSDAQ150 rebalance in June 2024.

• Taiwan PC names have been the top losers over the recent period, after having previously been the top winners. Our Long Dell vs. Short Acer trade is doing well.
• Nanya Tech was a top loser, falling along with its international Memory peers. Nevertheless, we note it underperformed Micron and SK Hynix. We continue to prefer SK Hynix for Memory.
• CES is happening now and will be wrapping up Friday. We like our Dell vs. Taiwan PC names through the CES event. TSMC will be reporting results January 18th.

• Zhubajie Co Ltd (ZHUHKZ HK) is looking to raise at least US$100m in its upcoming Hong Kong IPO. The bookrunners on the deal are Citic Securities, and CCB International.
• Zhubajie (ZBJ) is a customized enterprise services e-commerce platform in China.
• The firm focuses on using technologies to match the service demands of enterprise clients with the skills of service providers, facilitating transactions between its ZBJ platform.

• Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
• We assess TalkTalk’s ESG as “Adequate”, in line with its Environmental and Governance scores, while the Social score is “Weak”. Controversies are “Immaterial” and Disclosure is “Weak”.
• TalkTalk is the UK’s leading non-traditional telecom service provider. It offers fixed-line telecom and pay-TV services (3.8 k on-net subscribers as of August 2023), as well as wholesale telecom services.

• XPER is gaining momentum within the car and TV, setting up the potential for the second half of the year outperforming expectations.
• The additional customer wins are poised to put XPER on pace to grow adjusted EBITDA over 2023 levels. Additionally, these wins could be large enough to generate broader interest.
• During CES, XPER announced new design win at Argos, a United Kingdom based brand, and disclosed Konka, a Chinese TV maker, was the previously unnamed third TVOS partner

• In this note, we will take a look at broker performance for Korea IPOs and placements in 2023.
• The following dataset includes all Korean IPOs and placements above US$100m, which amounted to a total of seven deals. Given the small number of deals, we’ll keep the note short.
• The deals you see in this note are based on our historical IPO and placement tracker. Feel free to drop us a message for additional information.

• KEB Hana Bank, on behalf of the Lee family, is looking to raise up to US$1.6bn via selling 0.5% of Samsung Electronics (005930 KS) 
• The deal appears to be somewhat well flagged, however, the timing could have been much better.
• In this note, we will run the deal through our ECM framework and talk about the recent updates.

• Today after the close, there was word of an Accelerated Block Offering by two banks on Lasertec Corp (6920 JP), selling ¥61+bn or US$425mm of shares.  
• The Nikkei 225 hit a new 34-year high today, and this caused some tech stocks and high-weights to perform very well vs their peers. 
• This should cause the deal to get taken up easily. HOWEVER, it pays to know where the stock is. The register isn’t what volume tells you it might be.

• MUFG Bank and Mitsubishi UFJ Trust and Banking are looking to raise around US$425m from selling their respective stakes in Lasertec Corp (6920 JP).
• Given the strong momentum on the stock, combined with the wave of shareholders ending their cross-shareholdings in Japan, we would argue that the deal is somewhat expected.
• Despite the remaining overhang on the stock, the deal would be easily digested by the market as well, representing just 0.14 days of the firm’s three month ADV.

• The effective date, required by law to start six months post-promulgation, suggests implementation around July this year.
• Enforcement decrees and regulations, under the Financial Services Commission’s purview, must be confirmed before the effective date (within six months post-promulgation). The announcement is likely in early to mid-March.
• Expecting the amendment, there may be a pre-July surge in block deals as major shareholders expedite plans, creating assertive market activity in the first half with potential trading opportunities.

• Hon Hai released its December revenue figures on January 5th; Revenue came in lower than any other December in recent history.
• Hon Hai’s MIH EV consortium is showcasing solutions at CES 2024 this week in Las Vegas.  In Taiwan, the Luxgen expects 9,000 customer deliveries for its ‘n7’ EV by June.
• Hon Hai is trading at less than 5x forward 2025E PE; and on a trailing basis one of the lower EV/EBITDA’s in history. Latest share drop is a buying opportunity.

• Micoworks, a marketing company that optimises communication between companies and their customers, has raised JPY 3.5 billion (~US$24.5 million) in a Series B funding round.
• Vertex Growth, a growth-stage VC fund anchored by Vertex Holdings, a subsidiary of Temasek, led the round.
• Participating investors include JAFCO Group, Mitsubishi UFJ Capital, SMBC Venture Capital, and Mizuho Capital.

• In this note, we will take a look at the Asia Pacific IPO pipeline for 2024, starting with Hong Kong.
• This list has been compiled on a best effort basis from tracking the company filings and through various other sources.
• The deals you see in this note are only a part of our full IPO pipeline tracker. Feel free to drop us a message for additional information on these IPOs.

• Since releasing Q3 results, Money Forward’s stock price has fallen from 4,800 yen to the present 4,000 yen.
• Results on Friday could herald a stronger outlook for the share price. The market is fixated on quarterly earnings and ad spend – these should improve sequentially.
• Money Forward will release guidance for the coming fiscal year, which could see the company turn profitable at the EBITDA level.

• As electric vehicles gain popularity across the globe, they are still typically more expensive than gasoline-powered vehicles.
• One area where EVs still lag behind is auto financing, which – in its regular iteration – does not necessarily cater to EVs’ specific needs.
• Indian fintech startup Revfin aims to change that, and, in turn, make EVs more accessible to consumers.

• Mobileye surprised markets with an extensive guide down to their results.
• Shares reacted poorly, but at first blush, it makes sense given the magnitude of the guide.  Let’s walk through the release.
• It starts with inventory, and it’s clear their customers have too much inventory.

• LiveIn, a proptech firm headquartered in Malaysia, has raised US$8.3 million in its pre-series B funding round led by Wavemaker Partners and InterVest.
• Malaysia Debt Ventures (MDV), Jungle Ventures, and CAC Capital also participated.
• Currently operating in Malaysia and Thailand, LiveIn plans to use the new funds to enter new markets, including Vietnam and Indonesia, by 2024. The company also aims to expand to the Philippines and into new urban areas, and introduce new service features on its platform.

• Komunal, a fintech company offering neo-rural bank services in Indonesia, has raised US$5.5 million in a Series A extension funding round led by Sumitomo Corporation Equity Asia.
• Jafco Asia, Skystar Capital, Sovereign Capital, and Gobi Partners co-invested.
• With the Series A+ funding, the startup aims to drive financial inclusion in Indonesia by digitalising rural banks.

• In 2H23 our longs Visa and PagSeguro delivered positive returns, whilst PayPal was in negative territory; among our shorts, Kakao Pay was modestly successful, DLocal and Affirm continued to appreciate
• We retain card network megacap Visa as a core holding, and keep PagSeguro and PayPal adding Cielo to the buy list
• We keep our negative views on DLocal and Affirm, and remove Kakao Pay from the sell list for its less marked price-to-sales multiple valuation

•  Indonesian agritech startup Semaai has secured US$4.7 million (approximately IDR 73 billion) in a mix of equity and debt financing led by CyberAgent Capital (Japan).
• New investors Sumitomo Corporation Equity Asia, Ruvento, MyAsiaVC, and Heracles Ventures, besides existing backers Peak XV’s Surge, Accion Venture Lab, and Beenext, participated.
• This brings its total funding raised to date to US$7.6 million.

Nano Dimension has made a non-binding proposal to acquire the 86% of Stratasys that it does not own for $16.50 per share in cash. The deal would be financed mainly from existing cash, with discussions for additional financing currently underway. Stratasys is reviewing the proposal as part of its ongoing strategic review.