TMT/Internet

• Intel’s CFO boosted the current quarter outlook to the higher end of the guided range of $12 billion +/- $500 million
• Intel’s share price was up 4.8% in overnight trading, presumably a result of the forecast boost
• While Intel’s CFO thinks Intel is set to ride an AI wave, we think it will be more like riding a ripple across a rising tide that lifts all boats. 

• BILI’s revenue grew by zero YoY in 1Q22, but operating losses shrank significantly.
• The company reduced the subsidies to video uploaders, so that uploaders have been leaving the app.
• We believe the stock has an upside of 13% for yearend 2023. Downgrade to Hold.

• Tenancy sharing growth is supported by 5G where Cellnex is well positioned to benefit from its leading market position within the European 5G ecosystem.
• New CEO starting on June 4th. Target: to deliver on organic growth, reach investment grade, improve free cash flow generation
• Remains a takeover target. Trades on a discount to peers

• Bilibili Inc (BILI US) ’s 1Q2023 top line growth remained flat (+0.3%) while cost control measures helped reduce losses. This marks the lowest quarterly revenue growth for the company since 2017.
• Mobile games revenue further decreased while Value Added Services (VAS) revenue growth dropped to 5.1% during the quarter, lowest ever for the segment.
• There was no disclosure on paying user numbers and we do not expect any significant recovery in top line growth over the next 2-3 quarters.

• Datadog had a good Q1 as they exceeded analyst expectations on all fronts, with revenue of $482 million, a 33% YoY increase, and added approximately 1,400 net new customers.
• The company observed growth from existing customers and continued to see customers optimizing their cloud spend.
• In addition, Datadog made significant advancements in its product offerings, introducing new security capabilities such as Application Vulnerability Management and enhancing its Cloud Security Management product.

• Builder.ai, an AI-powered composable software platform, has raised US$250 million in a Series D funding round led by Qatar Investment Authority (QIA), the sovereign wealth fund of the State of Qatar.
• Existing and new investors, including Iconiq Capital, Jungle Ventures, and Insight Partners, joined.
• This round takes Builder.AI’s total fund raised so far to US$450 million.

• Most of the red flags that I have outlined before are now being taken care of, but I remain cautious for the time being.
• The market continues to react negatively to what was in my view a very good quarter, says Salesforce’s chief executive.
• A lot has changed since I first covered Salesforce (NYSE:CRM), back in December of 2020.

• ZUZU Hospitality, a revenue platform provider for independent hotels, today announced an oversubscribed US$9 million (SG$12 million) Series B funding round led by SoftBank Ventures Asia, with participation from Atinum Partners and existing investors Wooshin Venture Investment, Visor Ventures and JG Digital Equity Ventures.
• The startup plans to double its hotel partner count across the region with a keen focus on India and reach an impressive milestone of 5,000 partners by the end of 2024.
• Furthermore, it also plans to make strategic investments in AI tools to improve pricing, automate guest management, and improve partner experience.

• BILL Holdings, Inc. (formerly known as Bill.com) had a solid third quarter, with a 63% year-over-year growth in revenue and an all-around beat.
• Over 450,000 businesses used Bill to automate their financial operations, generating $65 billion in payment volume.
• We give BILL Holdings, Inc. a ‘Hold’ rating with a revised target price.

• Indonesia-based digital mortgage startup Ringkas has secured US$3.5 million in a seed funding round led by East Ventures and Crestone Venture Capital.
• 500 Global, Teja Ventures, Orvel Ventures, and Hustle Fund also participated.
• Ringkas will use the fresh funds to advance and scale its platform across multiple cities in Indonesia and the secondary market.

• Tencent is nearing our 302 support target with undershoot risk to sub 300, support at 290. HSI continues to trade heavy but reaching oversold levels.
• The break below 331 acted as the most recent sell trigger and will turn into resistance on the way back up. We turned bearish Tencent back in February. 
• Need to see lower price with weakening sell volumes for better buy conviction. Lower wedge support the buy zone, sync with an HSI low.

• KRX Semicon has experienced a considerable increase in AUM due to the recent AI rally. Two ETFs tracking SEMICON have a combined AUM of ₩0.6T.
• The following five stocks are screened as potential additions: ITM Semiconductor, Hyundai Energy Solutions, TEMC, Fine Semitech, and AT Technology.  
• While it may not be a major flow event, it still presents a trading opportunity worth considering, especially in September, which is relatively less eventful in terms of flows.

• Asia-Based leading personal finance aggregation and comparison platform MoneyHero has filed to go public in the US by merging with Bridgetown Holdings and raise proceeds of up to US$154m.
• This would give MoneyHero a pre-money enterprise value of US$200m and an equity value of US$198m with post-money EV of US$342m assuming no redemption by Bridgetown’s public shareholders.
• MoneyHero Global (1534965D HK)  plans to use proceeds from the deal to further accelerate growth and capture market opportunity in the region.

• The potential spin-off listing of Alibaba Group (9988 HK) Cloud faces significant challenges from various factors, making the timing particularly challenging for the spin-off.
• The Cloud Business is experiencing intensifying price competition, while simultaneously facing substantial regulatory risks, particularly with the Chinese Government’s plans to nationalize the cloud computing market.
• Due to the ongoing price war and the potential risk of nationalization, we believe that Alibaba (ADR) (BABA US) Cloud’s fair value is substantially below $10bn.

• Financial illiteracy has become a global problem, leading many to make uninformed, crippling decisions. This is especially true in Indonesia.
• With informal financing and predatory lending running rife, the country has a financial literacy rate of 38%.
• SkorLife, a credit builder based in the country, looks to change this. Founded by Ongki Kurniawan and Karan Khetan in 2022, the startup allows users to check their credit scores from Indonesia’s bureaus.

• Indonesian agritech startup eFishery has raised US$108 million in series D funding, pushing its post-money valuation to US$1.3 billion, according to VentureCap Insights, which tracks regulatory filings.
• The latest round is led by 42xfund and it saw participation from existing investors Northstar Group and SoftBank Vision Fund II.
• EFishery last raised US$90 million in a series C funding round in January 2022.

• Q1 Revenue growth and gains in profitability both strong, but Q2 guidance unexciting
• FTA is making good progress on promoting its automated freight matching service
• But other changes will require more time, and investors are impatient

• Canon was late to market with its 193-nm immersion litho tool developed in 2007 causing it to cede the leading-edge litho race to ASML and, to a lesser extent, Nikon
• The company has been working on NanoImprint Lithography as an alternative to EUV since 2004 & was supposedly fast tracked by the acquisition of Molecular Imprints in 2014
• Commercial launch was originally slated for 2015. We’re still waiting. Why?

• On 28th Mar 2023, Alibaba Group (9988 HK) announced that it would adopt a new organizational and governance structure, splitting into six major business groups and other investments.
• Alibaba also stated that each of the business groups would be set up as an independent entity with its own board and the groups will eventually seek to list.
• In our previous notes, we highlighted which divisions could list and looked at some of the divisions in more detail. In this note, we will talk about the international operations.

• Schrole Group Ltd (ASX:SCL) is an Australian software company focused on providing human resource technology solutions to the international education and training sector.
• Schrole has developed a suite of five HR Software-as-a-Service (SaaS) offerings including the core product, Schrole Connect, a SaaS-based staff recruitment platform.
• Schrole Group has held its CY22 annual general meeting in Perth, noting that it has an ambition of reaching a 25% share of the international schools’ HR SaaS market in the medium term. 

• Chewy will report 1QFY23 financial results after the market close on Wednesday, May 31, 2023. Management expects 1QFY23 net sales of between $2.72B and $2.74B, representing 12%-13% y/y growth.
• I calculate that insiders such as CEO & Director Mr. Singh, CFO Mr. Marte, and other management team sold ~$28M worth of Chewy shares during the last six months.
• My bear case scenario suggests downside on the continued slowdown in consumables, hard goods sales, intense competition in the pet insurance and pet health care segments, and uncertain macro environment.

As previously flagged, Nano Dimension has launched a tender offer at $18/share to buy up to 40.8% of Stratasys shares, with the aim of taking its stake to 55%. This would cost up to $502.7m in cash; we note that Nano Dimension had cash and short-term deposits of $957m at 21 May. On the same day the tender offer was launched, Stratasys announced plans to merge with Desktop Metal.

• The board’s renewal and the arrival of a new CEO (both should be a positive catalyst) are on track and will be completed in the coming weeks.
• Gone the takeover angle, Cellnex’s new strategy focuses on organic growth and deleveraging, aiming an investment grade rating and reducing net debt by end of FY2024 (already 5.6x net debt/2023e EBITDA).
• Cellnex trades at 15.3x EV/Fwd EBITDA, vs. 28.8x American Towers and 24.4x Inwit. TCI may still look for ways to increase the value of its investment.

• Recently, a controversy surrounding substantial crypto investments in the political sphere has exerted downward pressure on the stock prices of major listed game companies in South Korea. 
• In the past five years, there has been a shift in the gaming industry’s risk landscape, with social risks giving way to governance risks.
• Some game companies have started publishing sustainability reports, but challenges arise due to the inconsistency in environmental data and the difficulties in comparing companies.

• There are 3 changes for the CNI Semiconductor Chips Index that will be implemented at the close on 9 June.
• The inclusions will also be added to other indices over the next couple of weeks and there will be inflows from multiple index trackers.
• The adds have outperformed and with 9 trading days to implementation of the changes and the inclusions also being added to other indices, there could be further outperformance near-term.

• Nvidia’s CEO is in Taiwan this week for Computex and the company continues to dominate the headlines announcing Mediatek, Softbank, and WPP key partnerships.
• Semiconductor shorts have been squeezed after the global rally sparked by Nvidia’s monster results; We released our latest Taiwan Shorts Monitor to identify short squeezes.
• Earnings: Light this week for Taiwan, however PC industry leaders Hewlett Packard Co (HPQ US) and Dell Technologies Inc (DELL US) will report.

• At TMA we deliver high probability outcomes by focusing on our 3 pillars of technical analysis. •1) Response to key levels. •2) Price action. •3) Momentum confirmation.
• Meituan (3690 HK) has been trapped in a symmetrical triangle since bottoming in March 2022. Today the base of the triangle was impulsively broken at 122.55.
• The base of the triangle also forms part of a much larger LT uptrend that began in 2019. A month end close below 122.55 will target material multi-month downside.

• There will be 10 changes for the Chinext Price Index (SZ399006 INDEX) and 5 changes for the ChiNext 50 Index. Implementation is at the close on 9 June.
• One-Way turnover for the Chinext Price Index is estimated at 3.17% while the one-way turnover for the ChiNext50 Index is 6.61%. The one-way trade across both indices is CNY 2.72bn.
• The adds have outperformed the deletes by a huge margin over the last 3 months and there could be profit taking into implementation.

• Investors in the U.S. market seem to be having a more bullish outlook towards U.S.-listed semiconductor names than investors are having for Taiwan’s semi names so far.
• Stocks with highest short interest as % of float — Some of the top names squeezed… Is HTC next? Also can consider Long Wiwynn vs. Short Wistron.
• Highest short ratios — Asus, UMC, Transcend shorts squeezed… Could WPG be next? Also can consider continuing Long Asus vs. Short Acer.

• Changjiu Digital Technology (CDT CH) is looking to raise about US$150m in its upcoming HK IPO. The deal will be run by Citic Securities and ICBC.
• Changjiu Digital Technology (CDT) provides comprehensive automobile digital risk management services and automobile dealership operation management services in China. 
• According to CIC, it was the largest digital risk management service provider in China’s automobile sales and distribution industry in terms of revenue as of FY21 (31st Dec 2021).

• This is our first report on Forme and we look to provide a detailed account of the various drivers that will be responsible for the company’s growth in the coming years.
• Its top-line revenue has increased from a low starting point, while operating losses, operating cash flows, and EBITDA loss have all decreased.
• This is unlike many large incumbents like Peloton who have struggled with a high cash burn for many years.

• Amazon.com delivered strong results in the first quarter, with global net sales of $127.4 billion, an increase of 11% when adjusted for the approximately 210 basis points unfavorable impact of changes in foreign exchange rates.
• Moderate discretionary expenditure was observed in the quarter, with a shift towards more affordable goods and strong demand for daily necessities like consumables and cosmetics.
• The company’s revenue from stores and unit sales increased year over year in Q1 at a faster rate than its fulfillment costs and outbound shipping costs.

• Q1’23 revenues of $7.19 billion, down 13% from a year ago but up 19% sequentially and ~10% higher than the guided midpoint.
• Current quarter outlook for revenues of $11 billion, a ~55% sequential increase, sparked mayhem in the markets and sent NVIDIA’s stock soaring over 24% in after hours trading
• Don’t go chasing waterfalls, there are many other ways to rise with the tide

• There are 6 changes for the CES China Semiconductor Chips Index that will be implemented at the close on 9 June.
• All the inclusions are also additions to the CSI 500 Index and the passive flows will come from multiple trackers.
• The adds have outperformed the deletes over the last couple of weeks and there could be further outperformance over the next two weeks.

• 10 days ago Canon Inc (7751 JP) announced its 18th ¥50bn buyback in 15yrs. They have a pattern, both in execution and outperformance. 
• Historically, they are reasonably aggressive. It may pay to observe market data to see when they are done. It may also pay to look at peer outperformance cycles. 
• Here I look at both – buyback cycle performance and cycle outperformance. Good so far, and now I see a tactical trade but it’s not overwhelming.

• There are 50 changes a side for the CSI Smallcap 500 Index at the upcoming rebalance that will be implemented at the close of trading on 9 June.
• One way turnover at the rebalance is estimated at 9.45% leading to a one-way trade of CNY 5.93bn. The IT and Industrials sectors gain the most index spots.
• 8 adds to the CSI 500 Index are deletes from the CSI 300 Index while 3 deletes from the CSI 500 Index are adds to the CSI 300 Index.

• 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

• The semiconductor stock rally in the U.S. caused by Nvidia’s monster results and guidance last week has caused multiple ADR premiums to surge to near all-time highs.
• TSMC and UMC’s ADR premiums don’t appear sustainable given their trading history.
• Telecom CHT wasn’t affected by the Nvidia rally and now has one of the lowest ADR discounts in its history.

• SPACs are often synonymous with high-risk, cash-intensive early-stage companies making their public debut, but occasionally, a SPAC deal like CCC Intelligent Solutions emerges and shifts the narrative.
• CCC is a SaaS business with four decades of operational history in the property and casualty insurance sector that went public through a SPAC in 2021.
• Over the company’s history, it has processed over $1 trillion in transactions for 30,000 businesses.

• Q1 was a challenging quarter for Cloudflare as the company failed to meet the revenue expectations of Wall Street as a result of various the headwinds.
• However, macroeconomic uncertainty lengthened sales cycles and affected close rates, resulting in a back-end weighted quarter.
• Despite these challenges, Cloudflare remains resilient and profitable, with an operating profit of $19.4 million and generating $13.9 million of free cash flow.

• Fidelity National Info (FIS) had a successful start to 2023, surpassing Wall Street expectations in terms of revenues as well as earnings.
• FIS experienced significant recurring revenue growth in their banking and capital markets businesses and impressive organic growth in their e-commerce segment.
• We give Fidelity National Information Services a ‘Buy’ rating with a revised target price.

• First Solar had a very disappointing result in the last quarter as it failed to meet the revenue expectations as well as the earnings expectations of Wall Street.
• With their CadTel technology, vertically integrated manufacturing process, and commitment to Responsible Solar, First Solar could stand out from competitors and maintains long-term competitiveness.
• The recent acquisition of the European perovskite company, Evolar AB was also a part of the expansion strategy.

• The announcement of the changes for the June rebalance of the local China indexes was made post market close on Friday.
• A busy week is coming up with rebalance implementations, review cutoffs and announcements.
• There were inflows to iShares MSCI Japan ETF (EWJ US), Wisdomtree Japan Hedged Eq (DXJ US) and Jpmorgan Betabuilders Japan (BBJP US) during the week.

• It was a challenging yet promising quarter for Snap as it failed to meet the revenue expectations of Wall Street but surprisingly managed to deliver a positive bottom-line.
• Despite a 7% year-over-year decrease in revenue, the company reached 383 million daily active users in Q1 and showcased the community’s continued growth.
• Snap introduced My AI, an AI-powered chatbot, and unveiled new features at the Snap Partner Summit, emphasizing their commitment to innovation.

• The possibility of SKC securing additional shares other than the planned 40% through a tender offer seems low. This is a basis for the recent short position build-up in ISC.
• ISC began to experience an influx of short selling, leading to it being designated as an overheated short-selling stock, and short selling was restricted for one day on the 26th.
• We need to pay attention to the potential disappointment in the market, which could lead to a sustained downward correction in the stock price.

• Meituan (3690 HK) ’s 1Q2023 earnings beat consensus estimates and the key highlight was the company turning into adjusted operating profits after two years.
• Revenue from Core local commerce continued to see strong growth in earnings though we expected growth rates to decline with pandemic conditions easing off.
• Meituan has launched its food delivery app “KeeTa” in Hong Kong which is dominated by Foodpanda and Deliveroo.

• GoTo released a Newsletter for May which reiterated its progress toward profitability as well as some key initiatives including increasing service fees and expanding use cases for GoPay Coins rewards.   
• The newsletter also highlighted the release of the Annual Report and its Sustainability report, which are both important documents for longer-term and increasingly ESG-focused investors. 
• GoTo also highlights a report from the University of Indonesia regarding the company’s socioeconomic impact in the country, which remains huge given its socio-economic reach through ODS and Tokopedia. 

• The chip industry is seeing two “transitions” Intel is being phased out with the GPU shift, according to the company.
• The company is also expected to be phased out of the chip industry with the next generation of processors.
• The chip company is expected to have a new generation of chips in the coming years.

• NetEase reported in-line revenue for 1Q23, while non-GAAP net income exceeded our estimate by 22%. 
• <Justice Mobile> is set to launch by the end of June. We anticipate that investors may need to wait for some time after June for NetEase’s next potential hit title. 
• Maintain a BUY with TP unchanged, implying 18X PE in 2023.

• It was a successful first quarter for L3Harris as they delivered an all-around beat while building momentum in orders and backlog.
• The company saw top-line growth of 9% across all segments, along with improved operating income in two out of three segments.
• They also reaffirmed their 2023 guidance, with a potential bias towards the higher end of the revenue range due to strong revenue growth and significant orders.

• T-Mobile delivered a mixed set of results in the first quarter with revenues below Wall Street expectations but it managed an earnings beat.
• The company’s sustained growth in postpaid accounts and ARPU produced the strongest year-over-year postpaid service revenue growth in the market, up 6%.
• This quarter, the company added 287,000 net postpaid account additions.

• Weibo’s 1Q23 top line was in line with our est., and non-GAAP net income beat our est./cons. by 6.5%/ 7.6%, due to cost-saving measures. 
• While we dial down its 2Q23 revenue forecast, we remain optimistic about its growth in 2H23, as more brand advertisers gradually recover. 
• Maintain BUY and TP unchanged, which implies 12X PE in 2023.

• Meituan reported 1Q23’s rev./non-IFRS net income 2.5%/126% vs. our est., the strong margin beat is due to efficiency improvements in all business lines;
• To compete with Douyin’s in-store business, Meituan will spend more in 2Q23, however FD and insta-shopping continue to have margin upside. 
• Our BUY thesis remains unchanged, as we believe investors overestimate Douyin’s impact, while underestimating Meituan’s ability to improve margins. 

• Mastercard had solid revenue and earnings growth in the latest quarter and started 2023 with an all-around beat.
• On a non-GAAP currency-neutral basis, excluding extraordinary items, adjusted net revenues were up 15% and adjusted operating income was up 17% over the prior year.
• Payment network net revenue climbed 10%, driven by domestic and cross-border transaction and volume growth and a rise in rebates and incentives.

• Media reports indicate that the HDFC Bank (HDFCB IN) merger with HDFC Limited (HDFC IN) is expected to complete in 4-5 weeks.
• There will be inclusions to the NIFTY Index, Nifty Next 50 Index and S&P BSE SENSEX Index and capping changes to the Nifty Bank Index apart from changes to global indices.
• While the impact on the merging entities is not big, there will be fairly large flows on some stocks that are index inclusions or affected by capping changes.

• Nvidia’s results and guidance sparked a massive rally in the shares, marking one of the largest single-day increases in market cap in U.S. stock market history.
• The company sees a multi-year growth cycle of data center upgrades ahead. Key supply chain partners TSMC and ASML are rising as well.
• Wiwynn in Taiwan should be a key winner. We also highlight a potential wildcard smallcap AI play that we will investigate further.

• Q1’23 revenues of ¥764 billion, up 15% YoY and 2.6% QoQ
• FY2022, revenues grew by 13.2% to ¥2,859 while net income grew by 3.9% to ¥219.4.
• Electronic Materials set to grow from ¥180 billion in ’22 to ¥500 billion by ’30

• In 1Q23, total revenues grew by 27% YoY with all business lines up by more than 10% YoY.
• The real operating profits turned positive after nine quarters’ losses.
• We believe the stock has an upside of 35% for yearend 2023. Buy.

• Xiaomi reported C1Q23 top-line and non-IFRS net income (6.9%) and 20.7% vs. our est., and in-line and 39.9% vs. consensus; 
• We suggest that higher margins are transitory, as (1) key IC component prices may have bottomed, (2) EV spend is likely to ramp up further. 
• We maintain SELL and HK$ 8.2 TP, implying 26x FY23 PE.

• BZ reported 1Q23 cash billing 2.9% higher than our est.; revenue in-line with our estimate and consensus;  and non-GAAP NI 36.3%/35.3% higher than our est. and cons.
• As BZ approaching the proxy of China’s labour market, its primary hurdle is the slow recovery of labour demand and mismatch of supply and demand.
• We maintain SELL rating and TP at US$13.5., as we are still waiting for signal for the overturn of job seeking market in China.

• On May 22nd, Meituan launched its food delivery platform called KeeTa in Hong Kong SAR.
• KeeTa’s expansion stratgies include Collaboration with branded chain merchants,lower ASP, subsidy campaign, and launching “On-time Guarantee”.
• Sofar the initial results after launch seems to be in-line with expecation, while  there will still be a lot of challenges, like small market size and stabilized competition landscape.  

• Alibaba Health Information Technology (241 HK) ’s 2HFY03/2023 revenues beat consensus by 1.4% while adjusted operating losses of RMB1.74m (0.01% of revenue) is significantly lower compared to 2HFY03/2022 and consensus.
• Improvement in profitability was driven by improved GPM coupled with decrease in SG&A costs which helped offset increase in fulfilment costs as a result of the Covid-19 outbreak.
• Our quantamental analysis suggests that Ali Health’s margins have very little room for improvement unless the company cuts down SG&A significantly while improving revenue % from non-direct pharmaceutical businesses.

• Only six months after its establishment, Singapore-based Locofy launched a beta of its low-code development tool in January 2022.
• It has since received over 100,000 sign-ups across 195 countries.
• Its tech helps designers automate front-end code directly from their designs and integrate them with existing workflows, leveraging AI to convert designs into coding languages to save time.

• Intel delivered solid first-quarter results with revenues above expectations and narrower than expected losses.
• The fallouts of this quarter demonstrate the advancement Intel is making to advance the company’s transformation as well as the IDM 2.0 strategy.
• In the quarter, Intel introduced its 13th Gen Intel Core Mobile processor, followed by its new vPro platform.

• FLEETCOR Technologies delivered another all-around beat while managing a decent top-line growth and accretive operating leverage.
• The company had $901 million in revenue, a 14% increase, and cash EPS of $3.80, a 4% increase.
• We give FLEETCOR Technologies, Inc. a ‘Hold’ rating with a revised target price.

• Singapore-based insurtech startup bolttech has closed its Series B financing round at US$196 million, led by existing shareholder Japanese insurance holding company Tokio Marine.
• Other key investors include global life insurance giant MetLife through its subsidiary MetLife Next Gen Ventures, Malaysia’s sovereign wealth fund Khazanah Nasional, and new and existing shareholders.
• This funding takes the company’s valuation to US$1.6 billion and comes exactly seven months after Tokio Marine led the first tranche of bolttech’s Series B round.

• Singapore-headquartered telehealth platform ORA has raised US$10 million in a Series A funding round co-led by TNB Aura and Antler.
• Gobi Partners, Kairous Capital, and GMA Ventures also joined the round, bringing ORA’s total funding to date to above US$17 million.
• With this new round of funding, ORA will seek to expand its presence into new territories, both geographically and with new offerings.

• Trimble delivered mixed results in the first quarter, with revenues of $915 million that were below Wall Street expectations.
• The quarter’s cash flow improved significantly year on year, with both cash flow from operations and free cash flow exceeding non-GAAP net income.
• Revenues in the transportation business increased organically year over year during the quarter, and operating margins were higher than 15%.

• Alibaba Group Holding Ltd. outlined timetables for several key business units to complete spinoffs or pursue independent share sales, kicking off major moves in a sweeping reorganization to break up the gigantic conglomerate and unleash new growth momentum.
• Alibaba’s board of directors approved a full spinoff of its cloud services division while exploring initial public offerings for the logistics and grocery arms, the company said Thursday.
• The e-commerce giant plans to carve out the Cloud Intelligence Group within 12 months through a stock dividend distribution to shareholders, meaning it could relinquish control of China’s biggest cloud services platform.

• China just announced game approval for May 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.
• Both Tencent and Netease received approval for one game. We saw a pattern of approval rotation for the duo.

• Wistron Corp’s share price is up 96% in the past six months. Despite its outstanding results, a lot of the positives have already been reflected in its share price.  
• We think a more likely scenario for the stock is to undergo a period of share price consolidation in the next several months. 
• Its valuations also appear stretched, especially in terms of P/E and P/B valuation multiples as compared to their historical valuation multiples. 

• Delivered FY’23 net sales of ¥$211 billion, up 57.5% sequentially.
• FY’23 operating profit of ¥35 billion was up 63% sequentially
• Our favourite Japanese semi stock with a TTM P/E <5

• China bans Micron chips for critical information infrastructure — Taiwanese firms could benefit by straddling both sides of the trade tensions.
• TSMC rallies as U.S. and Japan advance incentives for TSMC and Taiwanese firms.
• Nvida earnings this week — We’ll see if the AI leader can keep the market excited about AI’s brave new world.

• First of all, Nvidia is a great business with many applications and infrastructure across many industries and one can even say an AI hardware leader down the road. 
• Overall, a big business with a wide moat in a great secular sector, hence a name that very likely will be here 10-20-30 years down the road.
• Semiconductors in general have been a top sector lately given AI advancements like the ChatGPT breakthrough, and the overall combo of high demand & supply issues.

• Qualcomm’s fiscal Q2 results were decent with revenues above expectations and earnings in line with the analyst consensus estimates.
• It is considered a fair result given the difficult macroeconomic climate and widespread decline in the semiconductor industry.
• During the quarter, there was significant use of Qualcomm’s Snapdragon digital chassis across major OEMs and Tier 1 clients in automotive.

• The IRS would offer a free tax filing option is unlikely to have a material impact on TurboTax.
• The company is taking the right steps to differentiate its service offerings which creates significant pricing power.
• The recent news that the IRS would Offer a free filing option was unlikely to be a material effect on Turbo tax.

Datatec reported group continuing revenue growth of 13% for FY23 (20% in constant currency) with adjusted EBITDA from continuing operations also increasing 13%. Supply chain issues started to ease allowing the company to accelerate delivery of its order backlog. Demand remained robust, resulting in a flat order backlog at the year-end, despite double-digit revenue growth. At a divisional level, Westcon delivered excellent results, Logicalis International performance was solid and, while down for the year, Logicalis LatAm rebounded in H223. Management expects all divisions to deliver improved performance in FY24; we are reviewing our forecasts.

• HubSpot had a strong first quarter as it continued to execute its bimodal strategy, with net customer additions increasing significantly at the lower end of the market resulting in an all-around beat.
• The connected platform of HubSpot continued to gain momentum, especially Sales Hub, which saw Liquidity Services reduce costs by 50% after adopting it.
• HubSpot’s bimodal strategy, which focuses on driving volume at the low market while increasing value upmarket, has proven successful, as demonstrated by the company’s strong customer growth in both segments.