Daily Brief TMT/Internet: DB Inc, Pushpay Holdings, Taiwan Semiconductor (TSMC) – ADR, Light Science Technologies Holdings, A10 Networks, Solid State PLC and more

• In this insight, we discuss another very interesting situation brewing which is the potential family feud at the DB Group.
• One of the scenarios of the Kim family at DB Group is a sibling conflict between Nam-Ho Kim (Chairman) and his sister Ju-Won Kim.
• Our base case valuation of DB Inc is target market cap of 488 billion won or 2,428 won per share, which is 36% higher than current price.

• At the 3rd March Scheme Meeting, just 55.5% of Pushpay Holdings (PPH NZ) shareholders voted for BGH/Sixth Street’s NZ$1.34/share Offer. At first glance, that was that.
• But uniquely in the M&A world, BGH/Sixth Street returned on the 16 March with a NZ$1.42/share Offer, a bump of 6%, around the mid-point of the independent expert’s valuation range.
• The revised Scheme Booklet is now out with a new vote to take place on the 27 April.  Key shareholders and the IE are supportive. Implementation is estimated late-May.

• Taiwan ADR premiums have continued to decline; a long holiday in Taiwan has opened up some rare opportunities given U.S. markets kept trading.
• UMC ADR’s are trading at a rare relatively deep discount and represent an opportunity.
• ChipMOS ADRs are also trading a rare relatively deep discount and are another opportunity to long the ADR spread.

Light Science Technologies Holdings has conditionally raised £1.5m (gross) through a placing and private subscription at 1p/share. The company also intends to raise up to £0.5m (gross) at 1p/share via the Winterflood Retail Access platform. The proceeds will predominantly be used for product development and intellectual property protection in the company’s controlled environment agriculture (CEA) division, as well as for general working capital purposes.

• ATEN continued to experience a slowdown in orders management had cited when the Company reported fourth quarter 2022 results
• ATEN is forecasting first quarter revenue of $56 million to $58 million compared to our estimate of nearly $67 million
• We are making changes to our earnings model including lowering our full year revenue estimate.

Solid State’s trading update confirms that trading continued strongly during H223, resulting in record revenues of c £125m and adjusted profit before tax of at least £10.5m in FY23. Consensus PBT estimates for FY23 and FY24 have not been changed, but consensus revenue estimates have been raised by 4% and 2%, respectively, for FY23 and FY24.

• Hon Hai reports start of production for electric tractors in the U.S., and separately its founder is seeking the support of Taiwan’s KMT party to run for Taiwan president.
• The extreme Delta Thailand vs. Delta Taiwan valuation disconnect has finally reverted hard; Delta Thailand shares have crashed recently relative to Delta Taiwan not trading.
• The long holiday has opened up some rare ADR discounts for Taiwan dual-listed names.