Daily Brief TMT/Internet: Alibaba (ADR), Wipro Ltd, Fujitsu Ltd, Flex, GigaVis, Taiwan Semiconductor (TSMC) – ADR, Zhubajie Co Ltd, Talktalk Telecom, Xperi, Samsung Electronics and more

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

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

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

Key points (machine generated)

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

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

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

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

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

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

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

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