TMT/Internet

• Apple Announces New AI Features at WDC; Shares Surge to New All-Time Highs
• Top Movers: Major Computex Exhibitors See Share Prices Fall Despite Strong Presence
• Computex 2024: Chip Companies Notably Competing to Win PC Makers

• Core Scientific, a leading entity in the cryptocurrency mining and data center sector, has recently positioned itself as a pivotal player in the evolving digital infrastructure landscape.
• The firm reported robust financials for the first quarter of Fiscal Year 2024, showcasing significant growth and operational efficiency.
• Notably, Core Scientific rejected an unsolicited acquisition proposal from CoreWeave, an event that merits analysis concerning its impact on shareholder value and corporate strategy.

• AI technology is driving sustainability efforts while posing environmental risks, as discussed by Nvidia CEO Jensen Huang at London Tech Week 2024.
• AI is revolutionizing computing and task optimization through advanced PCs and architectures, with AMD CEO predicting its dominance in the future and emphasizing Taiwan’s crucial role in the tech industry.
• Google is investing $5 billion in expanding its Singapore Data Center and Cloud Region campus, Apple is introducing VisionOS for spatial computing, and the UK is seeking Taiwanese partnerships for high-tech collaborations, while also focusing on privacy with Apple Intelligence at WWDC.

• SmartRent has provided a noteworthy set of results for the first quarter of 2024, accompanied by the company’s initiative of exploring a potential sale.
• In the recent report, SmartRent disclosed a revenue for the quarter amounting to $50.5 million, with $12 million attributable to SaaS (Software as a Service) recurring revenue products, representing a year-over-year increase of 32%.
• This growth is largely driven by the scaling of total deployed units and new gains from cross-selling strategies, demonstrating an effective execution of their business and product expansion strategy.

• Instructure’s latest financial performance presents a nuanced picture for potential investors and acquirers, reflecting both strengths and challenges.
• The company, anchored by its market-leading Canvas Learning Management System (LMS) in North America, reported robust first-quarter results.
• Total revenue reached $155.5 million, marking a 20.7% year-over-year increase, with organic constant currency revenue growth at 6.8%.

• BigCommerce has made notable strides in improving its business model and focusing on efficient revenue growth, particularly in the first quarter of 2024.
• As expressed by the company’s CEO, Brent Bellm, and CFO, Daniel Lentz, on their latest financial results, BigCommerce reported a 12% year-over-year revenue increase to approximately $80 million.
• This growth combined with an adjusted EBITDA of just over $4 million, indicating a trajectory towards sustainable profitability.

• Solid State (SOLI) is a British electronics manufacturer and distributor specializing in mission-critical components and systems for industries with high regulatory barriers.

• The founding families still lead the company, owning over 13% of outstanding shares. Since 2010, the CEO has driven annual sales and EPS growth of 18%.

• Despite this strong track record, the shares trade at a normalized 7.3% owner earnings yield and an 11.1 adj. EV/EBIT.

• DXC Technology reported its financial results for the fourth quarter of the fiscal year 2024, displaying a mixed performance amidst challenging market conditions.
• Total revenue experienced a decline of 5% on a constant currency basis, outpacing expectations slightly but reflecting broader industry and economic challenges.
• The adjusted EBIT margin decreased by 50 basis points year over-year to 8.4%, indicating pressure on profitability despite efforts to optimize costs.

• There are 5 adds and 5 deletes to the Yuanta/​P-Shares Taiwan Dividend Plus ETF in June with implementation taking place from 21-27 June.
• The constituent changes and capping changes result in an estimated one-way turnover of 12.8% and in a one-way trade of TWD 37.2bn (US$1.15bn).
• The changes are in line with our forecasts with one exception. Uni President Enterprises (1216 TT) was not added and Yulon Finance (9941 TT) was added instead.

• Starting 24 July, there will be a mandatory pre-announcement requirement for block deal sales in Korea. 
• In other words, the major shareholders of the Korean companies need to report publicly prior to their actual sales of their stakes in these companies through block deal sales.
• The potential block deal sales candidates could continue to underperform on average the companies that are selling these stocks in potential block deal sales in the next several weeks. 

• There is 1 change for the S&P/ASX20 Index, 1 change for the S&P/ASX50 Index, 2 changes for the S&P/ASX100 Index, and no regular changes for the S&P/ASX200 INDEX in June.
• The surprise inclusion of Wisetech Global (WTC AU) means that positioning is likely to be lower than the passive buying and there could be a move higher in the stock.
• There will be one adhoc inclusion to the S&P/ASX 200 (AS51 INDEX) at the close on 19 June following Cie De Saint-Gobain (SGO FP)’s acquisition of CSR Ltd (CSR AU). 

• Firms that split their shares show an avg. return of +25.4% one year after split. That’s more than 2x the average return of the S&P 500 during those periods. 
• Critically, returns post stock splits are mainly seen from announcement to actual split date. Mega caps have shown 9.3% absolute returns 12 months post split. Be cautious of misleading averages.
• On relative terms (v/s S&P500) price returns were down 6.3% 12-months after stock splits. All splits generated negative returns except for Tesla in 2020.

• Asia Vital Components (3017 TT) will replace Chang Hwa Commercial Bank (2801 TT) in the Yuanta/P-Shares Taiwan Top 50 ETF at the close of trading on 21 June.
• Asia Vital Components (3017 TT) was added to a global index at the end of May and the stock has dropped nearly 25% from its highs.
• Asia Vital Components (3017) trades at a much higher forward PE compared to its peers while Chang Hwa Commercial Bank (2801) trades at a lower PB compared to its peers.

• Based on returns and margins, US-listed Full Truck Alliance is best comp
• Lalatech probably deserves premium valuation multiples vs Full Truck Alliance 
• An equity valuation of US$11bn+ justifiable; will investors look at recent flops?

• AViC upwardly revised its full-year FY24/9 earnings forecast at the time of its 1H earnings announcement, demonstrating renewed and accelerated growth after recovering from the temporary slowdown in growth caused by business conditions and funding difficulties among startups and other emerging companies in FY23/9.
• While many of its competitors are showing sluggish business performance, the Company has been able to pursue growth on its own by committing to improving both client advertising efficiency and in-house productivity through meticulous and data-driven business operations as well as executing its fast-paced Plan-Do-Check-Act (PDCA) cycle.
• Meanwhile, its share price has not risen in line with the boost in EPS, with the latest P/E ratio hovering around 20x based on the revised earnings forecast.

• Ceragon Networks is a wireless backhaul solutions provider helping customers transition to 5G connectivity
• Faces competition from companies like Aviat Networks and Airspan Networks
• Recent unsolicited acquisition offer from AVNW rejected, with potential 83% upside in stock price according to 18-month price target

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

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

In a difficult trading environment, with customers in the largest target market in a digestion phase after widespread supply chain disruption, discoverIE reported strong underlying operating profit growth and margin expansion. Despite higher net finance costs and currency headwinds, underlying EPS increased 5% y-o-y (+10% at constant exchange rates). We forecast modest growth in FY25 and FY26 and continued margin expansion in line with company targets and expect further M&A to boost growth.

• 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, we looked at Guzman Y Gomez (0817833D AU), QuantumPharm (QUP HK) and Webtoon Entertainment (WBTN US) this week.
• On the placement front, there were a few deals across Hong Kong, Australia and Japan.

• The Quiddity Mainland Connect NORTHBOUND Monitor. Like the A/H Premium Monitor and HK Connect SOUTHBOUND Monitor. Lots of Flows/Position Tables and Charts with which to play.
• Last week saw NORTHBOUND net BUY RMB 5.3bn of A-shares on lower gross volumes. NORTHBOUND bought utilities, renewables, and semiconductors, and sold Kweichow Moutai, Midea, Bk Jiangsu, and Wuliangye Yibin.
• Ongoing questions as to whether the NORTHBOUND volumes to the buy side are all foreigners. Some suspect there is national team buying mixed in, as was expected from earlier announcements.

• Tuniu’s revenue grew by 71% YoY in 1Q24, as the company benefited from the travel industry’s recovery.
• Smart Share Global’s revenue plunged by 52% YoY in 1Q24 due to fewer customers in shopping malls.
• PDD plans to price products on behalf of retailers, which reflects the severe competition in e-commerce.

• Shares of RoboSense Technology, a mass producer of LiDAR products and perception solutions, rose ~86% since IPO and outperformed Hesai Group and Hang Seng Index on a YTD basis.
• Founder-Led LiDAR company priced its IPO at HK$43/share and raised ~HK$1B gross proceeds in January. RoboSense shares fell on first day of public trading on the Hong Kong stock exchange.
• Today, RoboSense Technology became the most valuable LiDAR company in the world and is now valued at roughly $4.6B. 

Key points

• Dropbox was last pitched in August 2022 with nearly reached $1B FCF guidance for 2024
• Company hit a plateau with guidance for $957M to $997M in last earnings call, factoring in stock-based compensation resulting in over $620M in FCF on an $8.1B equity
• Despite recent drop in equity value, Dropbox offers higher earnings yield and potential upside in equity value compared to Box

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

• Whilst the Chinese online games market has struggled since 2023, NetEase (9999 HK) has continued to gain revenue market share driven by the success of its mobile titles.
• Future revenue growth will depend on the continued success of NetEase’s legacy titles and its robust pipeline of upcoming releases, including several highly anticipated launches.
• NetEase trades nearly 2 standard deviations below its 5-year historic average PE trading range, a level that has proved to be a very good entry point.

• I tally 47 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
• Two new deals discussed on Smartkarma this week: Asia Cement China (743 HK)‘s rubbish Scheme; and the low-balled MBO for Nagatanien Holdings (2899 JP).
• Key updates took place on: CPMC Holdings (906 HK), APM Human Services (APM AU), Altium (ALU AU), Austal  (ASB AU),Shinko Electric Industries (6967 JP), and Hollysys Automation Technologies (HOLI US).

• Ciena Corporation reported its fiscal second quarter 2024 financial results, delivering a mixture of strengths and areas for caution.
• Revenue for the quarter reached $911 million, aligned with market expectations but reflecting the ongoing variability in the order patterns of service providers, particularly impacted by inventory adjustments.
• The adjusted gross margin stood at 43.5%, showcasing the company’s ability to maintain profitability even in a fluctuating market scenario.

• Indie Semiconductor’s Q1 2024 financial results and strategic discussion provide both encouraging and cautionary insights.
• During this period, the company reported a year-over-year revenue increase of 29% to $52.4 million, driven by strong performance in their Autotech market segment, albeit slightly below the provided guidance.
• Gross profit stood at $26.4 million, reflecting a gross margin of 50.3%, which fell short of expectations due to unfavorable product mix adjustments.

• Samsung chairman kicks off US visit with Verizon, highlighting importance of partnerships for expanding US market presence.
• French tech startups shine at InnoVEX, showcasing innovation and talent in the tech industry at Computex 2024.
• Taiwan chipmakers showcase cutting-edge tech at Computex 2024, while India’s EV market shows promise and challenges with Modi’s third-term win.

• Yanolja is getting ready to complete its IPO in the US in the next several months. Softbank invested about US$1.7 billion in Yanolja in 2021.
• The valuation of Yanolja could be between US$7 billion to US$9 billion. The company could raise nearly US$400 million in this IPO. 
• Overall, we are concerned about the valuations of Yanolja if indeed the bankers push ahead with the IPO at the valuation range of US$7 billion to US$9 billion.

• As per the Q1 2025 earnings, Asana experienced a positive start to the year, with revenues growing 13% year-over-year.
• Revenue from large customers grew even faster.
• Non-operating margins also improved by 5 percentage points year-over-year.

• CrowdStrike Holdings Inc. has reported its fiscal first quarter 2025 results, demonstrating robust growth and financial performance.
• CrowdStrike’s investment appeal is anchored on its comprehensive cybersecurity solutions delivered through the Falcon platform, an AI-native software that consolidates various cybersecurity functionalities.
• This platform strategy leverages artificial intelligence to enhance cybersecurity measures, streamline operations, and improve cost-efficiencies for clients.

• In its second quarter of fiscal 2024, Hewlett Packard Enterprise (HPE) reported notable performance, surpassing its initial revenue and non-GAAP diluted net earnings per share (EPS) expectations.
• This growth was primarily driven by a robust increase in demand for AI systems, highlighted by a significant uptick in revenue contributing to a cumulative AI systems orders of $4.6 billion for the quarter.
• HPE’s optimistic outlook is further supported by a raise in full-year revenue and non-GAAP EPS guidance, though it maintains its forecast for free cash flow.

• The Descartes Systems Group reported its robust quarterly earnings, displaying solid growth and notable investments in acquisitions.
• Ed Ryan, CEO, opened by highlighting key metrics revealing that revenues were up 11% from last year, adjusted EBITDA increased 16%, with a margin of 44%, and $63.7 million was generated from operations.
• The company concluded the period with almost $270 million in cash and had an untapped $350 million credit line, even after using about $140 million for acquisitions.

• Elastic, the search AI company, has reported strong results for Q4 and FY 2024, signalling its growth trajectory and strategic focus for the coming years.
• Its top-line earnings for the quarter exceeded analysts’ estimates, demonstrating its solid execution strategy and validating its land, expand and consolidate growth model.
• The firm’s revenue grew by 20% in Q4 to reach $335 million, boosted by a 32% increase in cloud revenue and the steady progression of its self-managed annual cloud subscriptions.

• HashiCorp recently released its fourth-quarter financial results, which revealed revenues of $156 million, marking an annual growth of 15%.
• The firm extended non-GAAP remaining performance obligations to $483 million, representing 21% year-over-year increase, exhibiting continued demand for its products.
• The key drivers for this performance were new enterprise wins and current remaining performance obligations (cRPO) growth.

• Autodesk, a leading design software and services company, had a robust financial performance for the Fourth Quarter and Full Year Fiscal 2024.
• The company reported a 14% constant currency revenue growth for the fourth quarter and emphasized its subscription business model and product and customer diversification as the foundations of its resilience.
• Autodesk’s earnings call highlighted marked growth and strong renewal rates in new business.

• Elliott Management has emerged as a 2%+ shareholder in SoftBank group and is driving for share buybacks of upto USD15bn; we see this as a game changer for minority shareholders
• Recent moves to enhance corporate governance in Japan have taken root, yet we see Softbank group as a laggard on corporate governance which been targeted by an experienced activist
• Softbank shares trade at a 54% discount to the estimated NAV; an activist like Elliott on board could meaningfully drive shareholder value creation and a narrowing of the NAV discount

• Activist short seller Scorpion alleges Lasertec is a “colossal fraud” and “ticking time bomb”
• Most of their allegations relate to problems with Lasertec’s EUV mask inspection tools
• Lasertec achieved Intel’s distinguished supplier ward for the past six years and last December landed an award from TSMC for  “Distinguished EUV Mask Inspection and Metrology Collaboration”. What gives?

• FSS wants Nikke’s MAU data to address revenue concerns. They also seek April and May sales data for Stellar Blade to address valuation concerns despite its recent launch.
• Shift Up updated the prospectus with Nikke’s increasing MAU data but didn’t include Stellar Blade sales data. FSS may request further revisions, possibly delaying the IPO again.
• Nikke’s MAU has risen but plateaued versus the previous quarter, and uncertainty surrounds Stellar Blade’s April-May sales, potentially impacting IPO pricing.

• Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
• There have been no TOPIX Inclusions in 2024 so far although dozens of companies have been able to meet the key Section Transfer requirements on paper for several months.
• However, there are some pre-event candidates we believe are worth monitoring as they have previously confirmed their desire to move to the Prime Market.

• Taiwan Semiconductor (TSMC) – ADR (TSM US) is planning to launch its 2nm in 2025.   
• TSMC is expected to acquire one High-NA EUV machine this year for R&D purposes, but it will not be used for commercial production.
• TSMC is expected to increase the cost of its Chip-on-Wafer-on-Substrate (CoWoS) package by around 15% in 2H24.

• Air Liquide investing $250M in new US facility for Micron gas supply, reflecting commitment to growth and sustainability.
• Maruti Suzuki focusing on renewable energy expansion in India, showing dedication to environmental initiatives and reducing carbon footprint.
• EVs driving demand for high-tech satellite dishes, while Nvidia aims to hire 50% foreign workers for new R&D center in Taiwan. EU-China tariff risks highlighted.

• The Altium Ltd (ALU AU) IE considers Renesas Electronics (6723 JP)’ A$68.50 scheme offer fair and reasonable as it is above the midpoint of the A$62.37 to A$70.27 valuation range. 
• The offer is conditional on remaining regulatory approvals (FIRB, CFIUS) and shareholder approval. 
• The offer price is attractive and 31% above the all-time high. At the last close and for the 1 August payment, the gross/annualised spread was 1.7%/11.6%.

• Salesforce Inc.’s Q1 2025 results saw revenue growth of 11% year-over-year to $9.13 billion, with the CRM provider leading market share worldwide for the 11th consecutive year, according to the latest IDC software tracker.
• The company is managing over 250 petabytes of data for its customers as it continues to drive transformation in artificial intelligence (AI).
• The company maintained its FY ’25 revenue guidance of $37.7 billion to $38 billion, representing a growth of 8-9% year-over-year.

• Dell Technologies Inc’s stock price crashed after a disappointing set of earnings.
• The company reported its first quarter results for the fiscal year 2025, highlighting a 6% increase in revenue to $22.2 billion.
• The revenue growth was attributed to remarkable growth in servers and a return to growth in the commercial PC business.

• C3.ai Inc.’s 2024 fourth quarter financial results and their fiscal year report have illustrated continuous growth and increased profitability.
• With a record revenue of $310.6 million for the full year, indicating a 16% increase from last year, and Q4 revenue at $86.6 million, the company has significantly exceeded analyst expectations and its own guidance estimates.
• Its subscription revenue reached an impressive $278.1 million, a 21% rise from last year’s figures.

• On 5 June, Shift Up announced that it will be postponing its IPO to July. The original book building period for the institutional investors was from 3 to 13 June.  
• The final book building date has been postponed to 27 June. The subsequent public offering subscription for general investors was also postponed to 2 to 3 July.
• A major investment positive of Shift Up is enormous initial success of Stellar Blade which was the best selling game in the U.S. and numerous other countries in April 2024.

• Sakura internet (3778 JP) is looking to raise US$127m from its primary follow-on. Proceeds will be used towards purchasing GPU servers, and constructing new data center facilities.
• While 11% of total shares outstanding are offered here, the deal would be easily digested by the market, representing just 0.8 days of its three month ADV.
• In this note, we run the deal through our ECM framework and comment on deal dynamics.

• Today, Maxell Ltd (6810 JP) announced its new MTMP “MEX26 – Commit to Value (CorporateValue,ProfitGrowth)” with lots of consultant-speak and corporate homily.
• But they present a capital investment plan, and a capital return plan. These may interest investors. The buyback is the same size as 2019 and 2022. They popped and faded.
• Todays tidbits were all announced during the lunch break today, and the stock popped 6% in the PM session on the news.

• Foxconn’s Hyderabad factory to begin producing Airpods in August, as confirmed by Telangana official.
• Qualcomm CEO backs Arm’s forecast of 50% Windows PC market share in 5 years.
• UnaBiz achieves record-breaking 90% accuracy with AI-enabled Wi-Fi geolocation; Nvidia and Foxconn unveil advanced computing center in Taiwan. EU establishes AI office to enforce AI Act. Tower Semi awaits wafer fab approval in India post-elections. Win Semiconductors propelled by mobile phone surge into 2024.

• Vanguard announce the establishment of a 12” Fab in Singapore with 60% stake, with Nxp Semiconductors Nv (NXPI US) will invest remaining 40%.  
• The nodes produced will span from 40nm to 130nm, encompassing mixed-signal, PMIC, and analog ICs to support automotive, industrial, consumer, and mobile applications.  
• Vanguard will uphold a healthy cash balance, along with large debt and a follow-up cash offering.

• Apollo-Managed funds and affiliates will lead an investment of $11 billion to acquire from Intel a 49% equity interest in a joint venture entity related to Intel’s Fab 34
• This deal follows a similar mid-2022 deal with Brookfield to co-invest in two new leading edge fabs in Arizona at a cost of up to $30 billion
• Why make the deal with Fab 34 in Ireland instead of the Ohio fab under construction?

• Surge in revenue during 1Q24 may have implications for a return to strong profit growth
• There is no evidence of structurally weaker core costs, like COGS and SGA and even R&D
• ROE is now above 20% and this after it large capital raising in FY22

• Marvell had a pretty solid result and guided to sequentially better revenue.

• The market didn’t like this, but I thought, looking through the result, I liked this result quite a bit. Shares did not.

• Marvell Technology reports Q1 EPS $0.24 ex-items vs FactSet $0.24.

• Lasertec shares dropped nearly 8% following a scathing 53-page report by Scorpion Capital, accusing management of “colossal fraud.” 
• The SC report is shrill, in our view, and therefore, we think we add value by contributing a second opinion. 
• In our view, Lasertec is due for a correction even if SC’s report is inundated by hyperbole.

• Astera Labs announced financial results for 1Q’FY24 in May. According to IPO prospectus, ~5.9M shares became eligible for sale following public release of earnings for the first quarter of FY24.
• The high-growth semiconductor company filed form S-8 on May 8, 2024. The selling stockholders, including current employees and service providers, offered additional ~3M shares as early lock-up expired.
• Astera Labs shares currently trade at rich multiples of ~37x EV/FY24E Revenue and ~25x EV/FY25E Revenue on my revised forecasts.

• When this deal was announced, it was light. But the timing, JSR influence, large-ish float, ensured FUD would make this trade wide. It traded wider.
• Nearly 5mos ago, Shinko had much-underperformed peer Ibiden, meaning downside gap risk from undisturbed was negative as spreads were wide. I reco’d a buy. Then 12wks ago, recommended taking profits.
• Shinko had outperformed Ibiden, gross spreads had narrowed 5+% on JSR approval. Spreads are now 2.6% wider than at narrowest. In May, gap risk narrowed as Shinko underperformed Ibiden.

• MSC indices were rebalanced in the closing auction on Friday. Turnover for the day on the JSE was R41.9bn, R25bn traded in the closing auction (60%).
• Turnover at the February rebalance was R25.6bn. Most SA constituents were pushed lower in the closing auction and for the day, consistent with the downweighting of SA Inc.
• China was downweighted in the ACWI and EM indices for a second straight quarter, reducing the country weight in ACWI by 6bps to 2.69%.

• The HSI added BYD Electronics (285 HK) and deleted Country Garden Services (6098 HK). HSCEI added Zijin Mining Group Co Ltd H (2899 HK) deleted Xinyi Solar Holdings (968 HK) 
• HSTECH had no changes, but lots of flow. The index team sets capping levels, then resets them a three days before the actual rebalancing. There were some capping/recapping changes.
• Below we offer tables showing all the changes and flows across the indices for each stock, ranked by Flows, ADV, and Ticker. And a spreadsheet with all the relevant data.

• Raspberry Pi is expected to raise about £157 million in this IPO. The conditional trading for this IPO is expected to be take place on 11 June.
• We estimate Raspberry Pi to generate sales of US$342.1 million (up 28.7% YoY) and operating profit of US$48.5 million (up 29.3% YoY) in 2024.
• Our base case valuation of Raspberry Pi is market cap of £772 million or £4 per share (43% higher than the high end of the initial IPO price range). 

• Gelsinger excited for AI PC breakthrough at Computex 2024, plans Intel’s 40th anniversary event in Taiwan next year.
• MediaTek unveils AI and wireless advancements at Computex 2024, demonstrating commitment to technology innovation.
• Nvidia CEO predicts rise of robots in the future; Taiwan’s LEO satellite program delayed by funding and tech transfer issues.

• Accounting fraud costs the global economy at least US$1 trillion each year in losses to investors, suppliers and consumers
• Detecting accounting fraud early gives investors valuable intel to rethink certain stock or bond holdings.
• Transparently.AI’s AI-powered solution is highly accurate in measuring and detecting accounting manipulation and fraud.

• There are 7 changes for the ChiNext Index (SZ399006 INDEX) and 5 changes for the ChiNext 50 Index at the June rebalance.
• We correctly forecast 5/7 and 7/7 for the Chinext Index adds/deletes and were 3/5 and 5/5 for the Chinext50 Index adds/deletes.
• Based on the estimated passive tracking AUM, the one-way trade across both indices is estimated to be CNY 3.69bn (US$508m).

• The June 2024 index review results for the STAR 50 and STAR 100 indices were announced after market close on Friday 31st May 2024.
• There will be 3 changes for the STAR 50 index and 9 changes for the STAR 100 index.
• We expect one-way flows of approximately US$750mn and US$314mn for the STAR 50 and STAR 100 index rebal events in June 2024.

• SK Hynix leads in next-gen HBM innovation, setting pace with Indian startup FermionIC aiming for market domination.
• AMD releases new processors for data centers and PCs promising improved performance and efficiency with Instinct, Ryzen, and EPYC.
• India partners with Taiwan for semiconductor ecosystem development, while Russia plans to produce 350nm chips with self-developed EUV machines in 2024.

• A near-term key NVX goal is to secure additional customers and lock in demand.
• NVX recently formed an agreement with PowerCo SE, part of the Volkswagen Group, to develop, test and analyze synthetic graphite anode materials customized for PowerCo’s requirements.
• If successful, this could lead to a new supply agreement.

• There are 13 changes for the TIP Customized Taiwan Select High Dividend Index in June. The TIP Taiwan Select High Dividend ETF (00919 TW) has an AUM of US$6.4bn.
• One-Way turnover is estimated at 41% and that will result in a round-trip trade of TWD 168.8bn (US$5.2bn). There are 16 stocks that could have over 4x ADV to trade.
• The rebalance will be implemented over 8 trading days and the ETF has started trading the stocks last week.

• There are 3 changes for the SSE STAR50 (STAR50 INDEX) and 9 changes for the STAR100 Index. Implementation will take place at the close on 14 June.
• United Nova Technology (688469 CH) and Biwin Storage Technology (688525 CH) were not added at the March rebalance since they were consistently loss-making. But they have been added this time.
• United Nova Technology (688469 CH) had been trading poorly and then the stock dropped further after non-inclusion in March. That could change now with inclusion confirmed.

• There are 4 changes for the CES China Semiconductor Chips Index that will be implemented at the close on 14 June.
• Biwin Storage Technology Lt (688525 CH) and Beijing Yandong Microelectroni (688172 CH) are also inclusions to other indices too and the multiple flows will increase the impact on the stocks.
• The adds have underperformed the deletes. If things go the way of the December rebalance, a long adds/ short deletes trade could do well from now to implementation.

• Xiaomi reported CY1Q24 revenue, non-IFRS operating income and non-IFRS net income 2.7%, in-line, and 21.7% vs. consensus;
• SU7 interest drove more and higher quality traffic to Xiaomi channels, driving higher revenue and margin for IoT and handset sales, in our view. 
• We expect this augmentation to sustain higher non-EV margin and growth in the long-run, and for ADAS and battery upgrades to drive demand for its next EVs. 

• NetEase’s first quarter earnings highlighted the company’s ongoing growth, driven in large part by its game portfolio.
• Net revenue for Q1 rose to RMB 26.9 billion, marking an accelerated YoY increase led by the company’s diversified game offerings.
• There was significant growth from established game franchises which have managed to maintain high popularity among their user bases, showcasing the sustainability of the company’s games.

• Snowflake Inc. reported a strong Q1 for its fiscal year 2025, with the CEO, Sridhar Ramaswamy, outlining the key priorities of learning from customers, driving execution within go-to-market teams, and fueling innovation and product delivery.
• The results presented prove that Snowflake’s core business remains robust.
• It delivered a remarkable Q1 with product revenue for the quarter rising to $790 million, a 34% increase YoY.

• The changes to the CSI All Share Semiconductors & Semiconductor Equipment Index were announced after market close on 31 May and will be implemented at the close on 14 June.
• There are 17 adds and 5 deletes for the index.
• The adds and deletes have underperformed the index over the last 6 months but the adds have outperformed the deletes over the last 3 months.

• In Q2 2024, Synopsys’s revenue increased by 15% year over year, aligning it with the high-end expectations of its guided range.
• The non-GAAP operating margin also rose by roughly three points to 37.3%, with non-GAAP EPS increasing by 26% year over year.
• These exceeding outcomes have prompted Synopsys to raise its full-year revenue and non-GAAP EPS guidance.

• During the Analog Devices’ second quarter fiscal year 2024 earnings, the company reported revenue of $2.16 billion, with profitability and earnings per share exceeding expectations.
• The management believes that the business is past the low point of this cycle, with positive signs of improvement particularly in the industrial sector.
• However, there is still economic and geopolitical uncertainty that can potentially impact short-term performance, as such, careful cost and inventory management will be key.

• Workday has reported solid financial performance for its first quarter fiscal 2025, noting a 19% subscription revenue growth and 18% 12-month backlog growth.
• Non-GAAP operating margin is at 26%.
• Despite some challenging dynamics in the quarter, such as increased deal scrutiny and slower customer headcount growth, Workday is encouraged by new go-to-market initiatives that are increasing total addressable market.