Daily Brief TMT/Internet: Anycolor , AEM, Taiwan Semiconductor (TSMC) – ADR, Fabrinet, CyberArk Software Ltd, Delivery Hero SE, Couchbase , Tower Semiconductor Ltd, Esker SA, Sps Commerce and more

• Late last week, the TSE announced the changes in FFW for companies which have FY-end in the calendar Q2. Changes at 30 Jan close also include Phased Weighting Changes.
• There are two additions and 61 upweights (including net effect of PWR/PWIs). There are 456 down-weights with two-way flows of about US$1bn. There is a tiny funding trade.
• Visional (4194 JP) and Furuya Metal (7826 JP) are the two adds. Other large dollar upweights are Asahi Intecc (7747 JP) and Anycolor (5032 JP). 

• AEM had a bizarre announcement on Sunday evening the 14th of January 2024: inventory was “lost” on the way to Penang from its Singapore factory.
• Given AEM’s stellar corporate governance reputation up until now, this raises more than a few eyebrows: how is this even possible? 
• 4Q23 results, due in a month, will feature a large restatement of FY23 results and lead to a major earnings loss. Any recovery is delayed into FY25.

• TSMC Results Tomorrow, Interest Will Be Elevated After Taiwan’s Election Result
• AI PC Availability Tight in Taipei? We Visited Taipei’s Guanghua Consumer Electronics Market Over the Weekend
• Alchip Technologies GDR Offering – Has Been Riding on an Unwavering Momentum Over the Past Year 

• This is our first report on Fabrinet, a leading provider of advanced manufacturing services.
• The company reported new quarterly records for both revenue and earnings per share (EPS), while free cash flow also hit a new quarterly high.
• Furthermore, this strong revenue growth contributed to record non-GAAP net income of $2 per share.

• This is our first report on software-based security solutions provider, CyberArk.
• The company had a strong Q3 2023 with its bookings growth accelerating, total bookings significantly outpacing the company’s guidance framework and seeing a rise in demand for its platform.
• In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Key points (machine generated)

• Delivery Hero is a dominant player in the global food delivery industry, operating in 74 countries and serving over 2 billion people with more than 3 billion annual orders.
• The company’s market leadership is crucial for generating strong economic profits in the food delivery sector due to the network effects and scale advantages it provides.
• Delivery Hero’s extensive selection of restaurants and dense delivery fleet enables them to deliver food quickly, maintaining its temperature and at a lower cost compared to competitors. However, despite these advantages, its profit outlook is concerning, casting doubts on its high enterprise 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.

Key points (machine generated)

• Couchbase offers a distributed, NoSQL database as an alternative to traditional relational databases, with three main products: Couchbase Server, Couchbase Mobile, and Capella.
• The company is transitioning to a hosted model, similar to successful companies like MongoDB, ElasticSearch, and Hashicorp, which is expected to accelerate growth and improve efficiency.
• If the transition is successful, Couchbase could see a potential upside of over 25% IRR and benefit from the advantages of NoSQL databases in managing unstructured data, dynamic schemas, and scaling efficiently.

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.

Key points (machine generated)

• Tower Semiconductor is currently undervalued and presents a compelling opportunity for long-term investors.
• The stock is trading at just a quarter of the price Intel was willing to pay for it, indicating a lack of appreciation by the market.
• The lack of coverage and silence during the Intel deal, as well as being an Israeli company, may deter some investors, but Tower has the potential for significant growth and ongoing capacity expansion projects, making it an attractive investment with the potential for a 3x return over the next three years.

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.

Esker reported FY23 revenue growth of 12%, or 14% in constant currency (cc), at the lower end of its guidance range. New contract wins in Q423 were 38% higher cc than in the prior quarter and 58% higher cc y-o-y, reflecting strong demand in France and the rest of Europe. FY23 operating profitability will take a hit as sales commission for better-than-expected new business is recognised in Q423. As FY24 guidance is more conservative than we expected, we have reduced our FY24 forecasts, resulting in a normalised EPS cut of 7.6%. While current economic conditions are weighing on the volume of transactions processed by Esker’s platform, the strength of new contract wins provides good support for medium-term growth.

• This is our first report on SPS Commerce, the provider of on-demand supply chain management solutions.
• The company’s total revenue increment by 18% in the quarter was notable, and the recurring revenue showed a promising 20% increase.
• In this report, we have carried out a fundamental analysis of the historical financial statements of the company.