TMT/Internet

• China just announced game approval for September batch. The number of games approved is in-line with the pace of approval in recent month.
• Pace of China game approval stays flattish, at a much slower pace than pre-tightening.
• Neither Tencent or Netease received approval for any game. Same thing happened for July batch.

• The latest Mate 60 Kirin SOC is a major accomplishment for the Huawei, SMIC combo
• SMIC will likely continue to refine their N+2 node and develop a 5nm-like process within 2-3 years, even without the use of EUV
• SMIC’s accomplishment is not reflected in its share price which lies midways between 52 week highs & lows

• After a heavy decline in ownership between 2016 and 2020, active Asia Ex-Japan managers are re-engaging with Baidu Inc.
• Ownership levels are at 4-year highs, with Baidu one of the key beneficiaries of manager rotation this year.
• Baidu is the 3rd largest holding in the Communication Services sector, but there a plenty of funds with a history of ownership who remain on the sidelines for now.

• 4Paradigm, a self-developed AI platform and scenario-specific AI applications provider, has completed an IPO and raised net proceeds of ~HK$836M, excluding the over-allotment option. 
• Founder-Led AI unicorn priced its IPO at the bottom end of the range at HK$55.60 per share. Cornerstone investors agreed to purchase ~13.6M H shares at the IPO price. 
• I like the company’s leadership position in China’s fastest-growing decision-making AI market, large TAM for their enterprise-grade generative AI offering SageGPT and top-tier VC investors. 

• Despite a sluggish macro environment, Microchip Technology’s quarterly earnings were solid due to resilient end markets and broad client base.
• The company’s net sales increased 2.5% sequentially and 16.6% annually to reach $2.29 billion.
• From a product line standpoint, their mixed-signal microcontroller net sales hit another all-time high, increasing 0.8% sequentially and 22.5% annually in the quarter.

• Twilio Inc. delivered a positive result and managed an all-around beat in the last quarter, exceeding its revenue and profit targets and producing a significant quarterly non-GAAP revenue from operations of $120 million.
• Twilio had a successful quarter in communications and continues to see encouraging signs of stabilization across its client base.
• Their management believes that bookings will recover toward the end of the year and that revenue growth will resume throughout 2024.

• Fox delivered decent results in the quarter, with revenue growth of 7%, including 12% growth in advertising, supported by significant tentpole events like the midterm elections, Super Bowl LVII, and the FIFA Men’s World Cup, as well as outstanding growth of Tubi and 3% affiliate growth driven by the first third of its distribution renewal cycle.
• These results show that Fox’s distinctive strategy continues to produce engaged audiences at scale for its distribution and advertising partners across its sports and news verticals while also propelling remarkable growth throughout its digital businesses.
• For the ninth consecutive quarter, the FOX News Channel concluded the fourth quarter as the most-watched cable network overall.

• Weekly summary of vol changes and moves across Global Markets
• Analysing ATM volatility and skew changes over the last 5 days
• We suggest a few trades to take advantage of the implied vol surfaces

• Huawei Technologies Co. Ltd. launched a line of new products this week, including a tablet and smart TV, powered by self-developed chips, in its latest show of semiconductor self-sufficiency in the face of U.S. sanctions.
• The fall season launch event on Monday came a month after the tech giant made headlines with the rollout of its new flagship smartphone the Mate 60 Pro — a handset using Huawei’s own Kirin 9000s chip that reviewers claimed can rival 5G speeds.
• During the launch event, the head of Huawei’s consumer division, Richard Yu, spent much of his time on stage measuring the company’s new MatePad Pro tablet against Apple’s iPad Pro.

• The September 2023 Nikkei 225 Rebalance is tomorrow at the close. This will engender a lot of buying of three names, and a lot of selling of 3 names.  
• It will also engender a funding trade of nearly ¥460bn. 
• I am going to beat the dead horse and warn about certain issues with this rebalance.

• According to SCMP, Londian Wason is getting ready for an IPO in the US in 2024. Londian Wason is planning to raise nearly US$500 million in pre-IPO funding and IPO.
• SK Inc owns about 30% stake in Londian Wason, a leading copper foil maker in China. It is estimated that SK Inc’s stake is worth about US$1.1 billion. 
• In 2022, Londian Wason generated sales of 1.47 trillion won. Since SK’s investment in Londian Wason in 2019, the company’s sales has been growing at more than 50% per annum.

• Micron’s FY4Q23 results beat expectations. The company expects to return to a positive margin by FY2H24, however projected a higher FY1Q24 loss than consensus expected.
• As suggested would be the case in our pre-results piece, the company said it sees memory prices bottoming and expects improving pricing and profitability ahead for the industry.
• While next quarter’s guidance may be weaker than some expected, we believe the key take-away is that Micron is seeing a memory prices bottom.

• On 28 September, Kangaroo Bidco announced that it waives the Minimum Acceptance Condition (>90% acceptances) of its best and final NOK 35/share offer for Kahoot! ASA (KAHOOT NO).
• Acceptances so far total 69.29%. The only remaining conditions are regulatory approvals from both China and United States.
• As of early afternoon 28 September, spread is 0.63%/5.55% (gross/annualised). Although volumes are thin, I expect higher volumes in the last stretch of the offer period. Recommendation: long and tender.

• NVIDIA Corp (NVDA US) drives King Yuan Electronics Co, Ltd. (2449 TT) stock price, but their growth is still limited in 2023F.
• King Yuan Electronics Co, Ltd. (2449 TT) acts as a buffer for Mediatek Inc (2454 TT) end demand during 2023F.
• Although it is not yet the time to reverse the downturn in 2023F, King Yuan Electronics Co, Ltd. (2449 TT) is expected to continue its upward trend throughout 2H23F.

• @Cosme continues to carve out a significant share of the cosmetics market, with record sales last year. 
• @Cosme appeals to a wide cross section of the population but this is about to get even wider once it starts selling via Amazon, its biggest shareholder.
• While there is debate about whether Amazon will increase its stake, what is certain is that Amazon will help drive iStyle’s sales growth.

• The Offer has been accepted for 19.2% of the current share capital, which means that EQT will control 98.2% of the shares.
• Those who tendered will receive a €3.2/share interim dividend (€2.72/share net) on 4 October, and €12.8/share on 6 October. EQT doesn’t intend to seek a squeeze-out.
• Investors in SUSE who have not tendered will become soonish shareholders in an unlisted company. Buying now means an 18.8% yield (net), and hoping for a future purchase offer.

• ARLO reporting better than expected third quarter results would rely on paid subscriber additions remaining on their current trajectory
• The pause in ARLO’s stock price creates greater upside potential as ARLO demonstrates its ability to generate positive earnings and free cash flow with each passing quarter
• ARLO has released a new line up of Essential cameras. ARLO had previously indicated it would update its Essentials cameras this year ahead of the holidays

• Take-Two Interactive Software delivered a mixed set of results for the previous quarter with revenues above the analyst consensus.
• Notable successes were observed in titles like Graft Theft Auto Online, Grand Theft Auto V, and NBA 2K23, surpassing projections.
• The launch of San Andreas Mercenaries for Grand Theft Auto Online brought fresh content, including new missions, vehicles, and fan-requested improvements.

• The official announcement from KRX regarding the KOSPI 200 rebalancing rule change is expected to be released shortly after the end of October.
• The rule change will take effect beginning with this year’s December rebalancing. An official from KRX has communicated that we can confidently regard this as confirmed.
• It is essential to be aware that during this December review, there exists a significant potential for generating substantial price fluctuations within a narrow timeframe.

• The stock is down more than 50% from its high 3yrs ago. The founder is 79. The CEO is 75. Employees and former directors own another 10%.
• This is an exit vs an MBO. And the Target Side negotiating the exit were rolled by Bain. This is NOT an expensive purchase. Bain’s equity check is 2.3x EBIT.
• But it probably gets done anyway unless someone gets noisy. For that, they’d have to buy a 10-15% stake I expect. 

• On 27 September, Maeil Business Daily reported that SK Square signed an MOU with Qoo10 to pursue a joint management of 11st. 
• It appears that Alibaba may have been reviewing this deal but it is no longer interested in pursuing 11st.
• A deal between Qoo10 and 11st could occur, but this is not certain, which means some of the cash proceeds to FI would need to be burdened by SK Square.

• Early last year there were articles suggesting that KKR would IPO Kokusai Electric at a valuation of about ¥700bn. 
• A year plus later the company is now set to IPO for something on the order of ¥436bn. 
• We are sure KKR is breathing a sigh of relief that they didn’t unload shares 60% higher and can now offer other investors some “value”.

• 4Paradigm has priced its IPO at HK$55.60 per share, at the bottom end of the indicative IPO price range of HK$55.6-61.16 per share and raised net proceeds of HK$835.5m.
• The HK offering and the international offering of the company were oversubscribed by 11.4x and 1.57x respectively implying very moderate demand for the company’s shares.
• Though priced at the bottom of the indicative IPO price range, our analysis suggests that 4Paradigm’s IPO is still expensive.

• System Information (3677 JP) has recommended Bain’s tender offer of JPY930 per share, a 21.9% premium to the undisturbed price (27 September).
• The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the tender offer is set at a 50.69% ownership ratio.
• Irrevocables to accept the offer represent a 19.69% ownership ratio. The minimum acceptance condition (lower limit) requires a 37.0% minority acceptance rate. The tender offer is reasonable.

• An investor consortium (including Blackstone and Permira) has made a non-binding bid for Adevinta ASA (ADE NO), which says the talks are in an early phase.
• By applying a 30% premium, the potential offer price would be NOK 111.5/share (18.6x EV/Fwd NTM EBITDA, IBES consensus). A leveraged buyer could obtain an 18% IRR by year 8.
• Adevinta trades (COM 26 September) at 17.6x EV/Fwd NTM EBITDA (vs. 16.4x median of comparables), so we can say the shares look fairly valued. Downside looks limited. I’d be long.

• 4Paradigm (6682 HK) raised around US$131m in its Hong Kong IPO. 
• 4P is a platform-centric AI enterprise solutions provider. It was the largest player by revenue in the platform-centric decision-making AI market in China in 2022, as per CIC. 
• We have covered various aspects of the deal in our previous notes. In this note, we will talk about the demand and trading dynamics.

• ACM Research is a bit of an oddball stock. It’s a US listing of a Chinese company, with 82% ownership of the Chinese subsidiary.
• The US listing is the parent company and has been in the crossfire of US-China trade tensions for years.
• It is probably the best Chinese Semicap company and has real orders with multinational companies, notably SK Hynix.

• Fortinet Inc. delivered a mixed set of results in its most recent result, with revenues falling short of Wall Street expectations but above-par earnings.
• Their quarter was marked by impressive total revenue growth of 26%, driven primarily by solid service revenue expansion exceeding 30% for the second consecutive quarter.
• In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

• Kokusai Electric (6525 JP) is a speciality manufacturer of semiconductor production equipment. KKR & (KKR US) seeks to raise about US$750 million through listing Kokusai.   
• Kokusai has the leading market share in the batch deposition equipment market and the second largest market share in the treatment equipment market, according to TechInsights and Gartner.
• The key elements of the bull case rest on a leading market share, strong IP, healthy forward revenue indicators, increasing recurring service revenue, solid gross margin trends and modest leverage.

• The news that the Indonesian Government will target social commerce in Indonesia, as well as placing additional scrutiny on imported products sold through digital channels will impact TikTok hard.
• TikTok Shop will not be allowed to operate in Indonesia in its present guise given the requirement to split social media and e-commerce, which will benefit peers Shopee and Tokopedia.
• Sea Ltd through Shopee will be the biggest beneficiary given it will require less promotional spending in Indonesia and it has also re-entered the Indian market with FreeFire. 

Boku reported H123 revenue growth of 26% y-o-y to $38.2m, with a growing and now material contribution from local payment methods (LPMs). Adjusted EBITDA was 28% higher and the margin expanded by 0.7pp, as upside from higher revenues was partially offset by further investment to support LPMs. We have revised up our forecasts to reflect faster growth in total payment volumes (TPV) partially offset by higher investment in Boku’s payments network.

• KKR is looking to raise around US$750m via selling a stake in Kokusai Electric (6525 JP) (KE) in its Japan IPO.
• KE main business activities consist of the manufacturing, sales and maintenance service of semiconductor manufacturing equipment.
• In this note, we talk about the positive aspects of the deal.

• Niche Japanese Semiconductor Production Equipment specialist Kokusai Electric (6525 JP) last Thursday announced the TSE approved its late October IPO (with indicative pricing, shares to be sold, and initial prospectus).
• This insight looks at initial shareholder structure, selling group, post-IPO shareholder structure with index inclusion timing, and follow-on flow possibilities. 
• At ¥435bn indicative market cap, it will be the largest IPO in Japan since pre-covid, despite coming in a cycle trough. I expect it will be hot. 

• In this insight, we take a look at the names leading the race to become ADDs/DELETEs for the T50 and T100 Indices for the December 2023 Rebalance.
• At present, I do not expect any index changes for the T50 index but there could be one change for the T100 index.
• More interestingly, out of the top 10 T100 Potential DELETEs, there are five TDIV members and it will be worth tracking their rankings over the next 2 months.

• In this insight, we discuss the potential inclusion and exclusion candidates for the KOSDAQ 150 rebalance in December 2023. 
• The 8 lowest market cap stocks in KOSDAQ 150 are among the main candidates to be excluded from the KOSDAQ 150 rebalance in December 2023.
• Potential inclusions for KOSDAQ 150 rebalance in December 2023 include Fadu, GigaVis, Jeio, PhilEnergy, and Manyo Factory.

• KKR is looking to raise around US$750m via selling a stake in Kokusai Electric (6525 JP) (KE) in its Japan IPO.
• KE main business activities consist of the manufacturing, sales and maintenance service of semiconductor manufacturing equipment.
• In this note, we talk about the not-so-positive aspects of the deal.

• Palantir Technologies maintained a GAAP operating income in Q2 and achieved GAAP profitability for the quarter.
• In Q2, Palantir closed deals in the US commercial market in about 30 sectors, including pharmaceuticals, energy, consumer goods, utilities, health care, construction, automotive, transportation infrastructure, etc.
• In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

• Carly Holdings has announced 100% growth in subscription revenue in July/August against the September 2022 quarter.
• The annualised revenue run rate is now $3.0m vs $2.5m in the June 2023 quarter and Carly has maintained a strong ratio of subscription revenue to transaction value at 66%.
• These outcomes are in line with our base-case expectations for H1 FY24.

• Akamai Technologies, Inc. delivered a positive result and managed an all-around beat last quarter.
• Akamai is pursuing a completely different approach to cloud computing, making it fully distributed with many more points of presence than typical systems provide.
• In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

• BlackLine, Inc. surpassed the revenue expectations as well as the earnings expectations of Wall Street.
• BlackLine generated $145 million in total revenue in the quarter and $31 million in non-GAAP net profitability.
• BlackLine also completed its largest middle market transaction ever, driven by the demand for cutting-edge solutions to challenging intracompany workflows.

• Sabre Corporation managed to exceed analyst expectations in terms of revenue as well as earnings.
• During the second quarter, the company reached its technology migration milestones, and it is still on schedule to meet its longer-term financial and operational objectives.
• In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

• Every year it’s the same trade. This year it is Wednesday and Thursday. There are risks to the analysis – notably allocation.
• But there may be ¥800bn+ to buy on one day into the close later this month (+ another ¥200-300bn on two other days). Then a ¥500bn sell two days later.
• Over the past ten years, the two day return on the March trade is great. In Sep, not so much. This year there are Extra Special Flows.

• This is the brand spanking new Quiddity HK Connect SOUTHBOUND Monitor. We work off the same presentation as the A/H Premium Monitor and Mainland Connect NORTHBOUND Monitor.
• The data on liquid names is presented for 5 days and four weeks and anything seen can be ranked in tables or selected and charted (names, sectors, outperformance, etc).
• We like the nifty interactive tables and charts and welcome feedback. This week saw HKD 14.5bn+ of net buying. That makes ten weeks of net inflows.

• Micron’s earnings results will be released September 27th. We expect the company to describe a trough for memory pricing happening now and provide a positive outlook for rising prices.
• Micron and Nanya Tech have outperformed SK Hynix recently. Our ‘reversion catch up’ trade has worked. Going forward we believe Micron looks compelling on a relative basis.
• SK Hynix was ahead of peers developing HBM DRAM needed for AI. However, Micron could now convince the market it can catch up by focusing on the next advanced version.

• Micron results this week. The company is likely to call a trough for memory prices and highlight its development of the next most advanced type of HBM DRAM for AI. 
• Taiwan’s market fell, with previous AI-rally beneficiaries continuing to be some of the top losers. Interestingly, Taiwan AI-names outperformed Nvidia over the last three months.
• Intel’s Innovation Conference wrapped up last week, with its new Meteor Lake PC CPUs launching Dec 14th, which is positive for the PC supply chain. Intel shares fell slightly however.

• First, let’s talk about Huawei. I want to highlight how lackadaisically the export restrictions have even been applied.
• BIS granted validated end-user status to SMIC in 2007, which meant that as late as 2020, multiple SMIC entities were still receiving tools from American companies.
• BIS got lobbied by tool makers to undo commerce control list regulations in 2018. Also, AMEC has outright stolen tools from US companies.

• There is a misconception that “MediaTek is gaining the Google TPU v7 project entirely in 2024-25F.”
• Transsion Holding is placing a new order with MediaTek in 4Q23F, which is larger than ~25mn and has the lowest ASP.
• Our current view remains bearish on smartphone demand for 2H23F.

• Korea Exchange is planning to change the criteria for rebalancing stocks in the KOSPI 200 index. 
• The purpose of this change is to prevent stocks that surge ahead of the actual KOSPI 200 inclusion but fall significantly after the inclusion announcement.
• We think there is a 70-80%+ probability that POSCO DX and L&F Co will be included in KOSPI 200 index in December 2023.

• Splunk shares outperformed in 2023 and rose ~69% as total ARR exceeded $4B, operating loss narrowed, and FCF margin improved. The company executed well to drive long-term durable growth.
• Over the past 2 years, Splunk transformed itself into a cloud company. In 2022, WSJ reported that Cisco made a $20B+ takeover offer. However, no deal was on the table. 
• Following M&A rumors, the company’s cloud transition, and strong fundamentals, Cisco offered a $157 per share to acquire Splunk in a $28B mega all-cash deal on September 21, 2023. 

• IPG Photonics Corporation delivered a mixed set of results for the previous quarter, with revenues below the analyst consensus.
• They achieved substantial revenue growth in the welding and cleaning applications, led by robust e-mobility and handheld welding solution sales.
• Additionally, 3D printing and solar cell manufacturing applications have seen increased revenue as a result of better investments in these industries.

• Trimble delivered a strong result and managed an all-around beat in the last quarter.
• Financially, Trimble demonstrated a robust performance, delivering an EBITDA margin of 25.3% and a strong gross margin of 64.2%, surpassing previous years.
• In the quarter, Trimble introduced LIMS PRO, a cloud-hosted iteration of its LIMS for sawmill raw material procurement.

• ZoomInfo Technologies delivered a mixed set of results in its most recent result, with revenues falling short of Wall Street expectations but above-par earnings.
• In the second quarter, ZoomInfo reported $309 million in revenue and an adjusted operating income of $126 million, boasting a margin of 41%.
• While examining customer health, the company anticipates that budgetary constraints and downward renewal pressures will persist in the near future, resulting in adjusted full-year expectations of 12% revenue growth.

• The sector sees dramatic improvement in profitability and cashflow thanks to cutback on marketing expenses and headcount reduction.
• Topline growth is recovering but still clouded by sluggish macro conditions. It is understandable that investors treat these China proxies – one way or another – with caution.
• The sector’s valuation will remain pressured before the property market stabilizes and key macro indicators show concrete signs of improvement, in our view.

• Symbio Holdings (SYM AU) disclosed a revised indicative “best and final” proposal from Superloop Ltd (SLC AU). The terms (A$1.425 cash and 2.14 SLC shares per SYM share) remain unchanged.
• The two key changes are there is no due diligence condition and a mix-and-match option subject to scale back to achieve a maximum of 60% cash or 60% scrip.
• The offer is conditional on entering a scheme implementation agreement by 29 September. The offer is palatable and the Board is likely to succumb and sign a binding agreement.

• Kokusai Electric (6525 JP)‘s listing has been approved by the JPX and the stock is expected to start trading on the Prime Market from 25 October.
• At the reported indicative IPO price of JPY 1890/share, Kokusai Electric (6525 JP) will be valued at JPY 435bn (US$2.94bn).
• The stock should be added to the TPX INDEX at the close on 29 November where trackers will need to buy over 14% of the stock issued in the IPO.

• In this insight, we provide an updated valuation analysis of SK Square (402340 KS) amid a potential sale of 11st to Alibaba (ADR) (BABA US).
• Our NAV analysis of SK Square suggests NAV of 9.2 trillion won or NAV per share of 65,069 won, representing a 55% upside from current levels.
• If SK Square is able to sell its stake in 11st to Alibaba, the capital inflow from the sale could be used to raise dividends and complete more share buybacks. 

• Our NAV analysis of LG Corp suggests an implied market cap of 16.9 trillion won or 107,217 won per share which is 28.4% higher than current share price. 
• We believe that LG Corp could announce another share buybacks representing 2-3% of outstanding shares in the next 6-12 months. 
• Another reason that could result in LG Corp’s shares outperforming other major LG related shares is due to the value investors increasing capital allocation to higher dividend paying LG Corp.

We view Softbank Group (SBG) as “Low Risk” on the LARA scale. This is mainly due to the group’s low reported leverage, as measured by LTV. SBG has demonstrated its ability to manage LTV, by periodically monetising large holdings of liquid assets (e.g. Alibaba Group Holding or T-Mobile/Deutsche Telekom shares) via derivatives or non-recourse margin loans. Investors can derive comfort from SBG’s remaining holdings of those liquid assets on the balance sheet. Domestic telco Softbank Corp is the only significant cash generator consolidated into SBG. We see risks stemming from the group’s reliance on its Alibaba stake (which may be volatile), as well as the use of cash from the asset monetisation programme. We are also concerned about the large share repurchase programmes despite SBG’s weak results, as well as the company’s ability to invest.

Our Credit Bias is “Stable”. We believe the worst is over for SBG. The North American and Chinese tech sectors appear to be improving. SBG executed a major asset monetisation exercise in FY 2022-23 to shore up the balance sheet, raising it to a healthy level. LTV is very low, and liquidity is sound. We see little downside going forward, and more upside.

Controversies are “Immaterial”, but the ESG Impact on Credit is “Moderately Negative”. SBG has faced governance concerns, particularly over internal controls and the outsized influence of Chairman, CEO and founder Masayoshi Son. Such issues flare up on occasion, weighing on the credit. One concern is that the chairman could make imprudent investments, lowering the value of SBG’s holdings while driving leverage up.

• F5 Networks Inc. delivered an all-around beat in the most recent quarterly result.
• F5 also continues to observe increased maintenance attach rates on older deployments due to customers worrying about their existing assets.
• Their product revenue increased by 1%, their systems revenue increased by 5%, and their software revenue decreased by 3%.

• Advanced Micro Devices Inc. (AMD) delivered mixed results for the previous quarter, with revenues above analyst expectations but below-par earnings, showcasing strategic execution and notable achievements.
• Despite a year-over-year decline in revenue, the company reported steady performance compared to the previous quarter.
• The data center segment experienced sequential growth, primarily attributed to cloud providers’ accelerated adoption of the fourth-gen EPYC CPUs.

• ANSYS Inc. delivered a solid result and managed an all-around beat in the last quarter, surpassing its financial guidance across all key metrics.
• During Q2, the company reported reliable performance, beating its ACV, revenue, operating margin, and EPS guidance.
• Total revenue for the quarter exceeded expectations, reflecting the positive impact of ACV outperformance and the mix of license types sold.

• Fleetcor Technologies managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
• Both print revenue growth and organic revenue growth stood at 10% for the quarter.
• While Q2 print revenue benefited from acquisition revenue, it was offset by lower fuel prices.

• Lumen Technologies, Inc. delivered a mixed result in the quarter, with revenues below anticipations but surpassed the Wall Street consensus regarding earnings.
• The total revenue was $3.661 billion, decreased 2.1% sequentially.
• In the quarter, free cash flow was negative $896 million, including $938 million in taxes paid in connection with their two divestitures from the previous year.

• Marizyme, Inc. (MRZM) is a fast-growing biomedical company with a powerful multi-technology platform.

• At the forefront is DuraGraft (DG), which has already demonstrated improved outcomes and lower costs for cardiac care through clinical trials and actual implementation in select overseas markets.

• In addition to continued ‘OUS’ expansion, MRZM is readying for the implementation of DG in US markets, pending FDA approval.

• In August, Itochu Corp (8001 JP) launched a Tender offer on Itochu Techno Solutions (4739 JP) to buy out minorities. 
• That tender offer ended last week, with Itochu and the acquirer vehicle owning 85+%. 
• Interestingly, there are near-term flow events as a result. Worth watching.

• Early on Monday morning, Naspers and Prosus announced the immediate resignation of CEO Bob van Dijk. Management hosted an investor call shortly after. Key takeaways are included below.
• Ervin Tu, Group Chief Investment Officer, will take over as Interim CEO. Tu is a strong candidate for the permanent position.
• After an initial bounce at the open, both counters sold off, widening the discounts by more than 1 percentage point intra-day.

• Softbank’s successful Arm Holdings IPO is a relief for Masa, with Arm valued at USD57bn and Arm shares trading above the issue price; this supports the SoftBank share price
• Arm’s key challenge is delivering on the growth strategy to justify its super-premium valuation; Arm’s historic price to sales is at a big premium to its peer group, excluding Nvida
• On current market values including Arm, Softbank shares trade at a 52% NAV discount; however, Arm’s current valuation seems unsustainable to us, threatening to erode the near term NAV lift

• Deutsche Boerse (DB1 GR) offered a (full) price of DKK 735/share for SimCorp A/S (SIM DC) to grow in data & analytics. I recommend long. Acceptances total roughly 93.65% of share capital.
• All conditions and approvals, including minimum acceptance of 50%+1 share have been fulfilled. Final results should be announced on 22 September and settlement should take place on 29 September.
• Deutsche Börse will as soon as possible seek to initiate and complete a compulsory acquisition. After a recent dip, the shares trade again at the offer price.

• The upcoming demand is expected to reduce in 4Q23F, with the most obvious decline in 40nm and 8″ demand.
• Wafer ASP is expected to remain relatively stable until 4Q22F, even though revenue is not anticipated to pick up in 1H24F.
• We expect the market to reach its lowest point in the first half of 2024F. The most likely scenario indicates a potential recovery around the third quarter of 2024F.

• British chip designer Arm Holdings Plc remains committed to China and to working closely with its mainland-based partner following its $4.87 billion IPO, according to chief executive Rene Haas.

• The Softbank-backed firm floated in New York last week via the world’s largest public offering year-to-date. But that has not affected its strategy globally.

• Shanghai-headquartered Arm Technology (China) Co. Ltd., also known as Arm China, operates independently and is the exclusive licensing platform of Arm’s global intellectual property in China

• 4Paradigm has announced the terms for its IPO. The company plans to raise gross proceeds of $131-144m through issuing 18.4m shares at an indicative price range of HK$55.6-61.16 per shares.
• The company’s IPO is timed perfectly when AI adoption is expected to expand on a large scale with the popularity of ChatGPT and other AI applications.
• Though we liked 4Paradigm (1764934D HK) for its improving financials and growth prospects, our analysis suggests that the IPO is expensive.

• Gene Solutions, which bills itself as Vietnam’s largest genetic testing company, has raised US$21 million in a series B round.

• This follows a US$15 million investment that the private equity investor made in the company in 2021.

• Gene Solutions is one of Mekong Capital’s recent bets in biotech, a sector that has been arguably underserved by venture capital firms in Vietnam.

• Kopi-C with StarHub’s CEO: “There’s no other telco like ours” StarHub’s CEO Nikhil Eapen shares how reinvention and diversification can help firms to retain and attract more customers for long-term growth After nearly a year at the helm, Eapen launched StarHub’s new DARE+ initiative in late 2021, a visionary plan to offer new products and services to connect customers’ digital lives.