TMT/Internet

• A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
• ECM developments: Shift Up (462870 KS) seeks to raise up to US$320 million.
• Event-Driven developments: Asia Cement China (743 HK), Greatview Aseptic Packaging (468 HK), Huafa Property Services Group (982 HK), Chilled & Frozen Logistics Holdings (9099 JP), Infocom Corp (4348 JP). 

• ZX (9890 HK) will replace Fenbi Ltd (2469 HK) in the KraneShares CSI China Internet ETF (KWEB US) at the close on 14 June.
• There will be over 6 days of ADV to sell in Fenbi Ltd (2469 HK) and we estimate over 2 days of ADV to buy in ZX (9890 HK). 
• There are other ETFs that track very similar indices and there could be a lot more to trade in the stocks at the close on 14 June.

• Bloomberg reports that Blackstone (BX US) has agreed to acquire Teijin Ltd (3401 JP)’s 55% stake in Infocom Corp (4348 JP) at a rumoured valuation of JPY260 billion. 
• The potential minority offer price depends on whether the rumoured valuation refers to market cap or enterprise value and whether Teijin will share TOB tax benefits. 
• The most likely scenario is that the valuation refers to the market cap, with Teijin sharing TOB tax benefits, resulting in a minority offer of around JPY5,720 per share. 

• After CaiNiao halted IPO in late March, company reported lower Q4 margins
• What drove Q4 margin deterioration, retention payments or weaker X-border?
• With IPO off the table, supporting AliExpress becomes CaiNiao’s main role

• Automotive revenues for Q1CY24 amounted to $603 million, up 35% YoY. This compares to MobilEye’s revenue of $239 million, down 48% YoY
• Automotive design-win pipeline is now $45 billion, up from $30 billion less than two years ago
• CEO Amon said “Every time we enter a new market, we end up building a very strong position”. That’s a shot across the bows for Intel and AMD…

• Market Largely Influenced by Macro Trends and Nvidia Movements This Past Week
• Key Events: Computex, Apple WDC, Key Taiwan May Revenue Releases
• Apple (AAPL US) Is Overhauling Siri In Order to Create a Beautiful Voice-based AI Interface for the iPhone

• Zoom reported total Q1 revenue of $1.141 billion, a 3% year-on-year increase.
• Enterprise revenue, which represented 58% of total revenue, grew 5% year-on-year.
• Gross margin was 79.3%, slightly lower than the 80.5% recorded in the same quarter last year due to investments in AI innovation.

• NVIDIA Corporation is on track to become the largest company in the world, purely on the basis of its leadership in the artificial intelligence (AI) and graphics processing units (GPU).
• The company, reported its first quarter earnings of the fiscal year 2025.
• The company generated record revenue of $26 billion which is sequentially up by 18% and YoY up by 262%, significantly surpassing its estimated outlook of $24 billion.

• Founded in 1881, Oki Electric Industry Co., Ltd. manufactures electrical and communications equipment, ICT equipment, and systems that utilize these products.
• In FY03/24, OKI reported full-year consolidated sales of JPY421.9bn, operating profit of JPY18.7bn, recurring profit of JPY18.3bn, and net income of JPY25.6bn.
• OKI Electric Industry Co., Ltd. announced that it expects to record income taxes–deferred in its consolidated and non-consolidated financial results for FY03/24.

• Global MSCI indexes (MSCI ACWI, ACWI ex-US, EAFE, and EM) are pulling back following recent breakouts to multi-year highs. Europe, Japan also pulling back to uptrend supports.
• Short-Term supports to watch-discussed in our May 23, 2024 Int’l Compass-include $110.50 on ACWI-US, $53.50 on ACWX-US, $80 on EFA-US, and $41-42 on EEM-US; buy this pullback. 
• As long as these supports hold, we anticipate significantly higher prices ahead. Combination of supports holding and healthy market dynamics continues to validate our bullish outlook on global equities.

• Company previously written up by starfox02 has doubled in price since August 2022
• Author sees potential for stock price to double again and provides a refresher on investment thesis
• Company specializes in manufacturing reliable and high-quality fuses, connectors, and power components for industries; trading at a low earnings multiple with opportunities for growth and margin expansion

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.

• Palo Alto Networks, a cybersecurity company, has reported a strong fiscal third quarter 2024.
• The company continues to observe robust cyberattack activities, with an increasing focus on software supply chain and hardware vulnerabilities.
• Notably, the adoption and experimentation of artificial intelligence (AI) by their customers have introduced a new set of threats, leading to the development of security products designed specifically to secure AI usage.

• The entire saga here of Teijin Ltd (3401 JP)‘s disposal of its 55.1% stake in Infocom Corp (4348 JP) is being played out in the non-generally-public press. 
• There is reportedly a new piece of writing out late Thursday which suggests an approach.
• I wrote about the “meaning” of words in Infocom (4348 JP) – The Meaning of ‘Binding Bids’ and ‘¥250bn’ and now there is more nuance to parse.

• The first trial in December 2022 ordered Chey to pay 67.5 billion KRW; today’s ruling increased this to 1.38 trillion KRW plus 2 billion KRW, including splitting SK Inc. shares.
• The increased settlement and SK Inc. share split could spark a management rights battle, causing SK Inc.’s stock price to jump as investors and shareholders react.
• It may take a year for the final verdict, making a sustained stock price increase unlikely. Yet, differences between trial rulings could alter Chey’s SK Inc. stake, sustaining market interest.

• Shift Up (462870 KS) is Korea’s leading game development studio. It is seeking to raise up to US$320 million.
• We previously discussed the IPO in Shift Up IPO: The Investment Case. 
• We examine the syndicate’s valuation methodology. Our analysis suggests that Shift Up is attractively valued in the IPO price range. We would participate in the IPO.

• We hosted a conference call recently with Himax management, the global leader in automotive touch display controllers; the company is experiencing a uniquely stronger automotive supply/demand environment than some peers.
• Discussed in detail how larger or more sophisticated interior displays can drive higher dollar content of display controllers per vehicle. We examine trending new car designs with much larger displays.
• We forecast an exponential jump-up in display controller content value per vehicle as beautiful display designs are becoming key USP for auto brands; Maintain our Structural Long rating for Himax.

• Groundhog Tech focuses on expanding 5G in SE Asia to drive growth in the region’s tech industry
• Skymizer introduces ET2 LPU and LLM system platform to enter the chip IP market and enhance its offerings
• Samsung increases staff at Japan lab for chip packaging innovations, while Malaysia plans to invest in chip ecosystem development

• Legend Holdings Corp H (3396 HK) owns 31% of Lenovo (992 HK) , the number one global PC maker
• Lenovo is a leader selling AI enabled PC’s globally.  Its server business is growing rapidly through strong demand for generative AI.  Legend is the leading AI seed investor in China.
• Technical pattern strong for Lenovo reaching a 9 year high.  Legend showing increasing momentum from an historic trough valuation level

• Zscaler missed billings estimates and lowered full-year revenue guidance due to extended sales cycles and deal closures delays
• Declining performances in the cybersecurity sector indicate potential underperformance for Crowdstrike
• Author predicts potential significant miss in Crowdstrike’s upcoming earnings based on current trends in the market

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

• Anticipate significant downward revision in Arlo Technologies’ long-term revenue guidance
• Management’s lack of transparency regarding key performance indicators may have misled investors
• Initiate a short position before Feb. 29th guidance update to benefit from potential share price decline.

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.

• BILL Holdings shares significantly underperformed in 2024 with shares down ~37% year-to-date versus a 12% gain on the Nasdaq Composite Index.  
• Shares saw sell-off post 3Q’FY24 earnings as results indicated a weak 4Q’FY24 guidance and customer churn while SMBs continue to be pressured by high inflation and interest rates.
• My bear case implies a $31 valuation (vs. prior $25 PT), based on ~2x FY25E EV/Revenue and bear case FY25E revenue of $1368M, representing ~40% downside vs. current levels.

• 214MW of new projects to more than double the existing 75MW in operation and further builds on Soluna’s impressive corporate turnaround.
• In the past year, Soluna has launched its flagship Project Dorothy with both hosting (1A) and propriety mining (1B), moved to more profitable hosting contracts at its 25MW Project Sophie, began diversifying revenue through AI hosting at Project Sophie, and launched a new AI cloud venture and the Helix AI datacenter design.
• In addition, the company has been adjusted EBITDA positive for the past two quarters, while the balance sheet has improved. 

• The TIP Taiwan Select High Dividend ETF (00919 TW) tracks the TIP Customized Taiwan Select High Dividend Index and has an AUM of TWD 209bn (US$6.5bn).
• There could be 14 changes for the ETF in June with an estimated one-way turnover of around 40% and a round-trip trade of around US$5bn.
• The potential adds have outperformed the potential deletes over the last couple of months and there could be more to go heading into announcement and implementation.

• China announced game approval for the May batch. The number of games approved remained at a higher level than 2023.
• The pace of China game approval appears to have accelerated to the same level as pre-tightening, though the number of approvals appears to be slower than March.
• None of the listed companies that we followed received approval for mobile games.

• Nvidia switches to FOPLP for AI server chips to alleviate CoWoS capacity strain, improving efficiency and performance.
• Taiwanese banks embrace GenAI despite challenges, as revealed by a McKinsey survey highlighting growing adoption in the industry.
• European carmakers forge partnerships across continents to compete in the affordable electric vehicle market, focusing on collaboration and innovation.

• Quantgroup Technology (1467534D CH) is looking to raise up to US$200m in its upcoming HK IPO. The deal will be run by CICC and CMB International.
• Quantgroup Technology is a digitalization solutions provider in China. Its digitalization solutions primarily include digitalized marketing, including precision marketing for financial institutions and local merchants, and goods transaction facilitation.
• The apps that Quantgroup operates can be largely categorized into two Quant-enabled proprietary apps, namely Yangxiaomie and Consumption Guide. 

• We hosted a conference call recently with ChipMOS management; the company continues to view 1Q24 as having been the bottom for the memory and display markets.
• Memory customers are increasing utilization further. Since ChipMOS does not significantly serve the HBM DRAM market, this indicates that previously softer non-HBM memory segments are now showing improvement.
• Display industry increasing utilization on expectation for 2H24 large display demand strength driven by sporting events such as the Paris Olympics. ChipMOS remains well below March highs, rate as Outperform.

• Zeta Markets, a Solana-based decentralised exchange for on-chain perpetuals, has closed a US$5 million strategic funding round led by Electric Capital, with participation from DACM, Selini Capital, and Airtree Ventures.
• Prominent angel investors also joined, including Anatoly Yakovenko of Solana, Mert Mumtaz of Helius, Richard Wu of Tensor, Marius Ciubotariu of Kamino, Stepan Simkin of Squads, Alex Smirnov of Debridge, Genia Mikhalchenko of Pyth, Nom of Bonk, and JMR Luna of Wintermute.
• This deal brings Zeta Markets’s total funding raised to date to US$13.5 million.

• Waystar Holding, provider of mission-critical cloud software to healthcare organizations, set terms for an IPO and plans to raise ~$970M in the upcoming Nasdaq offering.
• The initial public offering is expected to be between $20.00 and $23.00. At the midpoint, Waystar Holding has a market value of ~$3.7B based on 173.4M fully diluted shares.
• In my insight, I discuss valuation framework for comparable company analysis and research multiples of M&A transactions, including Athenahealth, Cerner and Change Healthcare. 

• Nvidia reported earnings, and as expected, they beat earnings. Did you think that Jensen would fail us now?

• On a more serious note, the guide was a bit light regarding buy-side bogeys, but there is almost nothing to complain about this result.

• Below is the StreetAccount summary, and you can see it’s a clean beat by every metric.

• Asmedia Technology (5269 TT) is looking to raise up to US$335m in its global depository receipts (GDRs) offering.
• Overall, the deal would be a relatively small one for the stock to digest at just 5.6 days of its three month ADV.
• In this note, we run the deal through our ECM framework and comment on deal dynamics.

• Akatsuki Inc (TYO 3932) is a net-net Japanese video game developer with 10 years of profitability.
• They’re undergoing a big transformation in an effort to better compete globally by investing enormous amounts into their core development capabilities and increasing their average budget per game 3-6x.
• They recently formed a capital alliance with Sony (6758) and Koei Tecmo (TYO 3635) with each taking a 10% and 8% stake respectively.

• Shift Up (462870 KS) is Korea’s leading game development studio. It is seeking to raise up to US$320 million.    
• Shift Up now focuses only on game development and has a policy of publishing games in cooperation with global partners such as Tencent (700 HK) and Sony Corp (6758 JP). 
• The investment case rests on a stellar game development track record, several growth drivers, high profitability and cash generation.

• Samsung aims to revolutionize memory technology by launching 1,000-layer 3D NAND by 2030, utilizing innovative materials for enhanced performance.
• Lenovo expands its market reach with AI PCs targeting a global audience, but faces stiff competition amidst concerns over Indian restrictions on imported PCs and notebooks.
• TSMC’s collaboration in Taiwan on 7nm tech brings together academia and industry, while China, Japan, and South Korea look to strengthen supply chains at a summit for mutual benefit. Samsung aims to increase its presence in China through collaboration.

• The SE600 index is one of the most widely followed benchmark indices in Europe. This index is rebalanced on a quarterly basis.
• The base date for rankings for the June 2024 index rebal event is 31st May 2024. In this insight, we take a look at the latest list of potential ADDs/DELs.
• Currently, I see 7 ADDs and 7 DELs for the SE600 index. There are more names just outside the border requiring small price changes to get involved in index changes.

• LY (4689 JP)‘s Yahoo Shopping looks to be in trouble after five straight quarters of negative growth while Amazon and Rakuten move ahead.
• Despite a revenue increase in 4Q2023, Yahoo Shopping continues to struggle with merchant fraud and a lack of a clear USP.
• If effective integration between the many parts of LY is not forthcoming soon, the company may eventually attract demands for better synergies, as well as a stick-wielding Softbank.

• UMC is currently forecasting a flat to low single digit growth QoQ for 3Q24, which is slight lower than consensus.
• UMC has received orders from domestic and international clients. However, we believe it couldn’t be able to compensate for the loss of Samsung’s 28nm orders so far this year.
• With accelerated construction in Singapore in 2024, the full-year capital expenditure has slightly risen to $3.3 billion.

• Shift Up (462870 KS) plans to raise up to US$320m in its South Korean IPO.
• Shift Up is a South Korean games developer, which as released three games so far for the global markets.
• We have looked at the company’s performance in our past notes. In this note, we talk about valuations.

Datatec reported FY24 revenue growth of 6%, with a strong performance from Westcon, a good performance in Logicalis International masked by a higher level of net revenue software sales and a mixed performance in Logicalis Latin America. Group gross profit grew 16% y-o-y and adjusted EBITDA grew 7%, resulting in a flat adjusted EBITDA margin of 3.5%. Underlying EPS of 20.2c more than tripled versus the prior year and good control of working capital resulted in year-end net debt of $123m. The company announced a dividend of ZAR1.3/US$0.07. Despite the difficult political and economic environment, management expects to see improved performances in each business in FY25 and continues to focus on unlocking shareholder value as part of its ongoing strategic review.

• A variety of articles of recent from private media sources have suggested that Teijin Ltd (3401 JP) has its 55% stake in Infocom Corp (4348 JP) up for auction. 
• According to earlier articles, binding Second Round bids were due last week. According to an article out late last week, binding bids have been made, with some “around ¥250bn.”
• What that means for price may depend on what the “around ¥250bn” means. A brief exploration below. 

• With the review period now complete, there could be 5 changes to the Yuanta/​P-Shares Taiwan Dividend Plus ETF in June.
• Price changes and changes to dividend estimates have led to names dropping off the list of potential adds and deletes over the last week.
• Constituent changes, capping and funding flows will lead to a one-way turnover of 12.7% and a one-way trade of US$1.17bn. There are 12 stocks with over 4x ADV to trade.

• Asia Vital Components (3017 TT) could replace Chang Hwa Commercial Bank (2801 TT) in the Yuanta/P-Shares Taiwan Top 50 ETF at the June rebalance.
• This ETF inclusion for Asia Vital Components (3017 TT) could come back-to-back with another index inclusion scheduled for the end of May.
• Shorts in Asia Vital Components (3017 TT) have been increasing recently while shorts in Chang Hwa Commercial Bank (2801 TT) are near their lows.

• Baidu’s revenue growth for the first quarter exceeded expectations, with a year-over-year increase of 4%, reaching RMB 23.8 billion.
• Additionally, Baidu’s continued efforts in Gen AI path have resulted in a 12% year-over-year acceleration in the revenue growth from Baidu AI Cloud, which also delivered an operating profit on a non-GAAP basis.
• These positive results signify the company’s successful transition from an internet-centric business to an AI-first business.

• Liquid cooling market expected to double by 2025, but industry shakeout predicted by Auras chair.
• Apple plans to ship over 9 million units of OLED iPad Pro, aiming to boost its market presence.
• South Korea aims to enhance its IC design sector, currently holding just a 1% share of the global market.

• Microsoft last week launched their CoPilot+ PC category which enables their CoPilot to run locally on your PC, as long as it has an NPU with >40 TOPS
• With Qualcomm being the only one currently offering such an NPU, their Snapdragon processors will be powering the first wave of CoPilot+ PC’s
• It’s an extraordinary accomplishment for Qualcomm & likely an inflection point for Arm powered PCs. It’s also really bad news for Intel and not great for AMD

• iQIYI, an innovative market-leading online entertainment service provider in China, delivered robust first-quarter 2024 results, achieving numerous record highs, such as non-GAAP operating income and its corresponding margin.
• CEO, Mr. Yu Gong, shared that the expanding margin could be attributed to the high-quality growth of the company.
• The Membership Services business continued its growth trajectory with monthly ARM observed an all-time high.

• We compare Lalatech’s scale, P&L, Balance Sheet, and Cash Flow to peers
• On several measures, Lalatech is comparable to Full Truck Alliance, SF-Intra
• Small, unprofitable GOGOX not an appropriate comp for Lalatech, in our view

• Take-Two Interactive Software Inc reported a healthy performance for the fiscal fourth quarter of 2024 with net bookings of $1.35 billion.
• The fiscal year 2024 saw net bookings of $5.33 billion.
• The performance for the period was attributed to the success of NBA 2K24, Zynga’s in-app purchases, Match Factory!, the Red Dead Redemption series, and the Grand Theft Auto series.

• Shift Up (462870 KS) plans to raise up to US$320m in its upcoming South Korean IPO.
• Shift Up is a South Korean games developer, which as released three games so far for the global markets.
• In our previous note, we looked at the company’s past performance. In this note, we will undertake a peer comparison.

• There are 13 inclusions and 13 exclusions for the KOSDAQ 150 Index (KOSDQ150 INDEX) at the June rebalance to be implemented at the close on 13 June.
• For the second consecutive review, Fadu (440110 KS) and Shinsung DeltaTech (065350 KS) have been kept out of the index. Not sure what the index committee’s beef with them is.
• The adds have outperformed the deletes and the KOSDAQ150 since the start of the review period. This has been helped, in no small, part by the ban on short selling.

• There will be 6 additions and 6 deletions for the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) at the June rebalance that will be implemented on 13 June.
• The index committee has used a boatload of discretion in the inclusion of CosmoAM&T (005070 KS) and the deletion of some of the stocks.
• The adds and deletes from the Information Technology sector will also have passive flow from the sector ETF and will increase the impact of the changes.

• TSMC’s Latest 2024E Industry Guidance Provided at Symposium in Taiwan
• More Potential Details on Nvidia & Mediatek’s AI PC Chip to Compete with Qualcomm & Intel
• Samsung’s HBM DRAM Chips Face Challenges in Meeting Nvidia’s AI Requirements

• Vanguard should declare to established 12″ Fab in Singapore within 2014.
• Vanguard is likely to announce the establishment of 2 sets of 12″ fabs in the next 6 months.  
• China is expanding 28/22nm and above technologies, and we believe it’s more appropriate for Vanguard to compete with others rather than TSMC.

• 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, Go Digit managed to do well despite somewhat tepid subscription rates, while Shift Up (462870 KS) was looking to be the next hot listing in Korea.
• On the placement front, Renesas Electronics (6723 JP) mega-block kept the cross-shareholding unwind going.

• Since late 2020, Search’s share of digital advertising revenue has stabilised at around 8-10%, seemingly retaining its core advertising customers and industries.
• Baidu management expects AI Cloud to maintain strong revenue growth momentum in the upcoming quarters.
• Baidu trades on a 3.6x NTM EV/EBITDA multiple, well below one standard deviation lower than its 5-year historical average trading range and the lowest it has ever been.

• Cisco Systems (Cisco) had a promising Q3, with organic revenue aligning with the higher end of guidance expectations.
• The company has transformed its business model, with over half of its total revenue now coming from subscription services, providing the company with a robust base for potential long-term growth.
• The acquisition of Splunk was also completed, adding over $4 billion in annualized recurring revenue and strengthening Cisco’s position as one of the world’s major software companies.

• Dropbox, Inc.’s Q1 2024 earnings showed both positive and negative aspects of the company’s financial performance.
• In terms of positives, the company reported revenue for the quarter that met its expectations.
• In addition, Dropbox reported an increase in paying users with 35,000 net new additions, despite a challenging fourth quarter.

• Dynatrace, a software intelligence company specializing in Software Intelligence Platform (SIP) and Application Performance Management, has reported an impressive Q4 FY 2024 and the full fiscal 2024 financial report.
• During this period, the company achieved significant milestones and accomplishments, among them surpassing $1.5 billion in Annual Recurring Revenue (ARR), translating to 50% growth compared to the result from two years ago.
• They also closed their largest new logo ever, an almost 8-figure ACV deal, and landed their first 9-figure TCV deal.

• EPAM Systems, a leading global provider of digital platform engineering and software development services, reported their Q1 2024 earnings and these financial results marked a tough quarter as they experienced a year-on-year decrease of 3.8% on a reported basis or 4.3% in constant currency terms, which translated to a revenue of $1.165 billion.
• Their gross margin was also affected, decreasing to 28.4% as compared to 29.3% in Q1 of last year, mainly due to foreign exchange impacts due to the strengthening of currencies in specific delivery locations.
• This was further amplified by their inability to adjust prices following EPAM’s Q2 2023 promotion campaign.

• Onto Innovation’s Q1 2024 results indicate a solid start to the year, reflecting a robust uptake for high bandwidth memory and logic packaging for AI devices.
• The net quarter revenue upsurged at the top end of the guidance range, a significant 15% rise from the same period the previous year.
• Notably, Onto Innovation’s specialty and advanced packaging customers achieved a record growth for the third consecutive quarter, attributing a 64% year on year increase during Q1 2024.

• Following the fiscal 2024 fourth quarter earnings, of Qorvo Inc, an investment thesis can be derived from the presented results that highlights both positive and negative aspects for potential investors.
• Starting with the positive aspects, Qorvo seems well-positioned to capitalize on global secular macro trends, including mobility, connectivity, electrification, and datafication.
• These trends are enabling new applications and user experiences, making them increasingly relevant in the modern business landscape.

• In the first quarter 2024 earnings of Unity, the management expressed strong optimism about the platform’s future, citing the imminent arrival of new CEO Matt Bromberg.
• The interim CEO also noted indicators pointing to the ability to deliver on the plan for the year.
• The previously unsettled customers have now gained confidence with Unity’s transition to runtime fee, and discussions have been productive about this change.

• The KRX have announced the index changes for the KOSPI200 June review.
• The index will be rebalanced in the closing auction on Thursday the 13th of June.
• There will be 6 additions to the index and 6 deletions.

• Unexpectedly, KRX included Cosmo AM&T (005070 KS) despite not meeting the market cap cutoff and excluded DB Hitek (000990 KS) and Lotte Energy Materials (020150 KS).
• Cosmo AM&T’s unexpected inclusion triggers a significant one-day passive flow event through the KOSPI 200 IT, the sector index with the largest AUM.
• Sector index rebalancing, a single-day event managed by one ETF operator, more significantly correlates flow direction with price impact. We should consider a long-short setup for these on June 13th.

• Global EV charger market overview with key players highlighted in the industry, including a focus on technological advancements.
• Ex-IBM Chief Accessibility Officer seeks to revolutionize digital inclusion in Taiwan’s manufacturing sector through innovative strategies and initiatives.
• Updates on notebook shipment for April 2024, global smartphone sales in the first quarter of 2024 as well as collaborations such as SDC & Lenovo teaming up to launch slidable display devices by 2025.

• The company recently announced poor earnings down 56% YoY in 1Q24
• Dwindling cash is another major concern especially with higher debt/ebitda
• At 15-25% ROE is sensible but now back toward 5% there is less enthusiasm

• Kuaishou reported C1Q24 revenue, IFRS OP, and IFRS Net income inline, 58%, and 78% vs. our estimates; and inline, 67% and 86% vs. consensus
• Company suggested contribution of Generative AI (GAI) to the growth of the advertising business to be substantial;
• We reiterate our BUY rating and raised target price to HK$83, implying 17x PE in 2025.

• Warner Music Group (WMG) demonstrates its influence in the music industry with a global team that continuously delivers for its artists and drives the business forward. In the second quarter earnings call transcript, Warner Music Group specified that the total revenue increased by 7% with Recorded Music and Music Publishing increasing by 4% and 19% respectively. This growth reflects the company’s efficacy in creating and promoting music in various genres and throughout all stages of artists’ development. Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology. In this report, we have carried out a fundamental analysis of the historical financial statements of the company. We have added reasonable forecasts of the annualized income statement and cash flows and carried out a DCF valuation of the company using its Weighted Average Cost of Capital (WACC) to determine a forecasted share price. We have further incorporated a sensitivity analysis/ scenario analysis to understand how changes in key assumptions could impact the valuation under 3 scenarios – a base case, a bull case, and a bear case. These additional layers of analysis serve to provide a comprehensive and robust valuation, giving investors a nuanced understanding of the inherent risks and opportunities.

• Fox Corporation reported strong Q3 fiscal year 2024 results, demonstrating its ability to distinguish itself from its peers with a 7% EBITDA growth and the steady performance of its brands. However, these results were compared against last year’s Q3 which benefited significantly from the windfall of Super Bowl LVII.
• Fox’s total affiliate revenue fees showed promising growth, with a 4% increase driven by the benefits of recent renewals. This was evident in both the Television and Cable segments. However, advertising revenues were down due to the absence of the Super Bowl and fewer NFL broadcasts compared to the previous year. If the shortfall from NFL games were disregarded, overall advertising revenues would have increased slightly. Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology. In this report, we have carried out a fundamental analysis of the historical financial statements of the company. We have added reasonable forecasts of the annualized income statement and cash flows and carried out a DCF valuation of the company using its Weighted Average Cost of Capital (WACC) to determine a forecasted share price. We have further incorporated a sensitivity analysis/ scenario analysis to understand how changes in key assumptions could impact the valuation under 3 scenarios – a base case, a bull case, and a bear case. These additional layers of analysis serve to provide a comprehensive and robust valuation, giving investors a nuanced understanding of the inherent risks and opportunities.

• Roblox Corporation reported its results of their first quarter 2024 earnings and reported that daily active users (DAUs) hit over 77 million, marking a 17% increase from the same period the year before. Year-on-year growth for users above the age of 13 was particularly impressive, at 22%.
• Japan, a significant gaming market, reported a growth surge of 50%, while India saw similar success, boasting a growth rate of 58%.
• There was also positive news relating to revenue, which hit $801 million, marking a 22% year-on-year rise and exceeding the company’s own projected range of $755 million to $780 million. Bookings were $923.8 million, landing firmly within the predicted guidance range of $910 million to $940 million. However, Baszucki highlighted expectations were for a higher figure, sparking some concern. Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology. In this report, we have carried out a fundamental analysis of the historical financial statements of the company. We have added reasonable forecasts of the annualized income statement and cash flows and carried out a DCF valuation of the company using its Weighted Average Cost of Capital (WACC) to determine a forecasted share price. We have further incorporated a sensitivity analysis/ scenario analysis to understand how changes in key assumptions could impact the valuation under 3 scenarios – a base case, a bull case, and a bear case. These additional layers of analysis serve to provide a comprehensive and robust valuation, giving investors a nuanced understanding of the inherent risks and opportunities.

• Gen Co., a leader in consumer cybersafety, wrapped up its fourth quarter of fiscal 2024, showing impressive financial growth and gains in operations. Over the fiscal year, the company recorded consistent operational results, making it their fifth year of organic growth. This growth is driven by an increasing awareness of cybersafety needs among consumers, making it a dynamic and compelling market opportunity. Gen’s focus solely on cybersafety sets them apart from competitors who may have other substantial interests. The company’s dedicated teams are continuously uncovering, researching, and stopping new threats. In the fiscal year ’24, over 12 billion attacks were blocked by using threat telemetry data and advanced AI capabilities. Gen’s strong technology offering on all major platforms combined with AI capabilities and market-leading visibility across the entire ecosystem has positioned the company to lead the way in consumer cybersafety. Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology. In this report, we have carried out a fundamental analysis of the historical financial statements of the company. We have added reasonable forecasts of the annualized income statement and cash flows and carried out a DCF valuation of the company using its Weighted Average Cost of Capital (WACC) to determine a forecasted share price. We have further incorporated a sensitivity analysis/ scenario analysis to understand how changes in key assumptions could impact the valuation under 3 scenarios – a base case, a bull case, and a bear case. These additional layers of analysis serve to provide a comprehensive and robust valuation, giving investors a nuanced understanding of the inherent risks and opportunities.

• Akamai Technologies, Inc.’s first quarter earnings showed strong growth in the company’s security and compute sectors, while facing headwinds in the delivery product line. The financial results saw revenue grow to $987 million, reflecting an 8% increase year-over-year in both constant currency and reported. Non-GAAP earnings per share were reported at $1.64, a 17% increase year-over year and 18% in constant currency. Furthermore, the fast-growing parts of Akamai’s business, including security and cloud computing, grew to represent ultimately 2/3 of total revenue, with an impressive growth of 22% over Q1 of 2023.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology. In this report, we have carried out a fundamental analysis of the historical financial statements of the company. We have added reasonable forecasts of the annualized income statement and cash flows and carried out a DCF valuation of the company using its Weighted Average Cost of Capital (WACC) to determine a forecasted share price. We have further incorporated a sensitivity analysis/ scenario analysis to understand how changes in key assumptions could impact the valuation under 3 scenarios – a base case, a bull case, and a bear case. These additional layers of analysis serve to provide a comprehensive and robust valuation, giving investors a nuanced understanding of the inherent risks and opportunities.

• Shift Up plans to raise up to US$320m in its upcoming South Korean IPO.
• Shift Up is a South Korean games developer, which as released three games so far for the global markets.
• In this note, we talk about the positive aspects of the deal.

• Tata Technologies (TT) raised around US$370m in its India IPO in Dec 2023.
• Tata Technologies is a global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (OEMs) and their tier 1 suppliers.
• In this note, we talk about the upcoming lock-up expiry and possible deal dynamics.

• Total revenue growth rate climbed up 27% YoY in 1Q24 with all businesses growing strongly.
• Smartphone shipments grew by 34% YoY and achieved global No. 3.
• In 1Q24, the gross margins of all major businesses obviously improved.

• FTA’s revenue growth accelerated in Q124 and exceeded management guidance
• Gross and OpInc margins (cash basis) both improved sharply in Q124
• Growth, profitability, mix improved, but FTA no longer so cheap; HOLD

• Shift Up (462870 KS) plans to raise up to US$320m in its upcoming South Korean IPO.
• Shift Up is a South Korean games developer, which as released three games so far for the global markets.
• In this note, we talk about the not-so-positive aspects of the deal.

• China’s military drills near Taiwan causing concern, but local market still strong
• Taiwan celebrates opening of first offshore wind farm in Asia-Pacific by CIP
• US to increase tariffs on Chinese EVs, batteries, and steel starting August 1, affecting trade relations.

• Marvell has historically performed well in the market but is now shifting its focus to growth areas such as AI, cloud computing, and faster data networks
• Despite recent cyclical weakness, the company is expected to see improved performance and strong earnings growth
• Reactivating the account is a strategic move to capitalize on Marvell’s promising future prospects and potential increase in stock value

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.

• Immersion (IMMR) announced it had renewed its patent license agreement with Samsung Electronics removing the biggest risk overhang of 2024
• Samsung has been IMMR’s largest customer at one point representing more than 60 percent of revenue. In the most recent 10K filing, IMMR describes Samsung as a significant customer
• We assume there was a step down in the rate Samsung pays, since this is usually the norm with technology companies and IP deals

• Shopify reported strong performance for the first quarter of 2024.
• The company saw the addition of millions of merchants globally to their platform, with revenues growing over 25% for four consecutive quarters.
• This was primarily driven by the fact that it had rolled out over 400 new features and updates in just two years, demonstrating leadership in innovation.

• HubSpot Inc.’s Q1 2024 earnings conference call revealed a mix of strong performance and cautious optimism.
• Total customers grew by 22% YoY, translating to over 215,000 customers globally, driven by over 11,700 net customer additions in the quarter.
• Revenue growth was solid at 23% year-over-year in constant currency, alongside another good quarter of operating margin growth, driving the operating margin to 15%.