Daily Brief TMT/Internet: Cosmo AM&T, JF Wealth Holdings, Lasertec Corp, Beisen Holdings, Harvest Technology Group Ltd, Centralnic, Adobe Systems and more

• Two new names have emerged as likely candidates for inclusion in Korea: SM Entertainment and Cosmo Advanced Materials, whose YTD returns are approximately 104% and 83%, respectively.
• For SM Entertainment, the float rate may be adjusted downward depending on the tender offer results. Still, even if modified to 50%, it will surpass the float market cap hurdle.
• Cosmo still has a significant gap in the full market cap. However, we should note that the recent insane rally in Korea’s EV battery sector shows no signs of ending.

• JF Wealth Holdings (9636 HK) raised around US$129m in its Hong Kong IPO.
• JF Wealth (JFW) is an online investment decision-making solution provider in China, focusing on the online investor content services market.
• We have covered various aspects of the deal in our previous notes. In this note we will talk about the demand and trading dynamics.

• 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.
• The structure of the November / March decline is typical of a counter-trend correction with multiple crossovers and a lack of impulsive price action.
• The past 3 weeks have seen declines quickly reversed as bullish ST momentum failures plague these attempted declines. A weekly close above 22299 will confirm a likely MT uptrend renewal.

• China-Based HCM technology unicorn Beisen Holdings (1667838D CH)  filed for an IPO in Hong Kong. Morgan Stanley and CICC are leading the upcoming offering. 
• Beisen Holdings (1667838D CH)  is the leading provider of integrated HR SaaS and talent management platform with ~12% market share of the overall cloud-based HCM industry in China. 
• We believe the company’s expected IPO valuation may reach $1B, making it one of the largest providers of cloud-native HCM solutions in China scheduled to go public this year. 

CentralNic is a UK software company, operating globally through its two businesses, Online Presence and Online Marketing. Through a series of acquisitions, Online Marketing has become the group’s primary driver, delivering high double-digit revenue and profit growth year-on-year since the group’s first foray in 2019. Now at critical mass, the business is positioned for sustained organic growth, allowing management to prioritise capital allocation and shareholder returns, while maintaining high margins and strong cash conversion.

• Following the massive drop in Adobe’s share price, more investors are looking favourably at the business.
• In my view, capital allocation decisions within the company raise some red flags that are hard to overlook.
• As a long-term shareholder, I still have a hard time rating Adobe as a buy.