Daily Brief TMT/Internet: Fuji Soft Inc, Shopify , Kuaishou Technology, Oracle Corp, StubHub Holdings, Accenture Plc Cl A, Sage Group, Jabil Circuit, Samsung Electronics, Team Internet Group and more

• KKR’s Second Tender Offer for Fuji Soft Inc (9749 JP) ended 19 February 2025 and KKR got a whopping 57.9% after Bain bowed out. It was close.
• The Nozawa founder said it would not tender. Others family members may have, but now KKR has signed a deal with Nozawa family company YK NFC, to support the squeezeout.
• Assuming, Nozawa Hiroshi’s stake and the NFC stake remain unchanged, that cements the result of the 25 April AGM. But there may be games to play.

• Shopify (SHOP US) is eligible for Nasdaq100 following its listing transfer from NYSE to Nasdaq on 31 March. Inclusion is anticipated in December 2025 or earlier as a replacement.
• Shopify (SHOP US) is expected to be added to R1000 and Krisp Mega in June 2025 due to a new domestic 10-K filing which results in a US nationality assignment.
• The company can be considered for TMI and S&P500 only if it re-domiciles to US. New filings and US headquarters point towards that direction, but no plans have been announced.

• Kuaishou (KS)’ operating margin improved to 10% in 2024 versus 4% in 2023.
• Online marketing revenue increased by 20% and GMV increased by 17% in 2024.
• We conclude an upside of 104% for the next twelve months.

• Oracle Corporation’s third quarter fiscal year 2025 earnings report indicated significant strategic advancements and robust financial performance, balanced by some challenges.
• On the positive side, the company reported a record $48 billion addition to its backlog, bringing the remaining performance obligations (RPO) to $130 billion, which represents a 63% increase year-over-year.
• This growth suggests strong demand for Oracle’s cloud services, which is a key positive indicator for future revenue streams.

• Operator of one of  the largest global secondary ticketing marketplace for live event, StubHub Holdings, filed for an IPO on Friday, March 21st.
• Their revenue was $1,770.6 million, $1,367.7 million and $1,036.7 million  for the years ended December 31, 2024, 2023 and 2022, respectively. 
• GMS increased from $6.85b –> $8.67b from 2023 to 2024 representing a 26.5% increase

• Accenture delivered better-than-expected results for the second quarter of fiscal 2025, but the stock took a steep hit as investor concerns mounted over potential fallout from U.S. federal cost-cutting initiatives.
• The consulting giant posted earnings of $2.82 per share, just above the analyst consensus of $2.81, and reported revenue of $16.7 billion, surpassing expectations of $16.6 billion and marking a 5% year-over-year increase.
• However, despite this beat, the company’s shares plunged 9.4% to $292.72, logging their worst single-day performance since June 2013 and becoming the S&P 500’s worst performer on the day.

• Sage launched its Copilot AI assistant automating accounting, HR and payroll tasks. This aims to roll out across all products by 2026. Sage plans to integrate AI agents into workflows. 
• The Sage Network platform connects accounting systems across businesses, facilitating automated workflows and real-time data integration. It enhances Sage Copilot’s capabilities and creates opportunities for migration to cloud-based solutions.
• Sage’s resilient business model, supported by subscriptions, positions it well in a challenging market. The company is focused on expanding its customer base through AI-powered solutions.

• Jabil Inc. reported strong financial results for its second quarter of fiscal year 2025, delivering $6.7 billion in revenue and highlighting a year-on-year growth of 3% when adjusted for divestitures.
• Core operating income was reported at $334 million, with a core operating margin of 5%.
• On a GAAP basis, the company reported operating income of $245 million and diluted earnings per share of $1.06.

• DeepSeek is participating in a China-US AI competition, showcasing their innovative technology and competing on an international stage.
• The China chip sector is rebounding at SEMICON China, with a focus on AI technology to drive growth and progress in the industry.
• Samsung Electronics co-CEO Jong-Hee Han tragically passes away, while Hyundai makes a significant $21B investment in US production, supply chain, and future mobility. The EU is investigating Chinese subsidies for BYD’s $4.3B Hungary EV plant.

While Team Internet’s Search business faces ongoing challenges, Comparison had a breakout year (revenues +43% y-o-y) and appears to have established an effective model for international expansion. DIS continues to generate solid growth and margins. Between them, these latter two divisions account for 80% of our FY25 EBITDA estimate. Our sum-of-the-parts (SOTP) analysis indicates a valuation over 90p is readily achievable and the c 68p share price attributes no value to Search. We believe a successful migration of Search revenues from AdSense for Domains to Related Search on Content will be the key catalyst for doubts to wane and for more value from Search to become priced in.