Daily Brief TMT/Internet: Fujitsu Ltd, Alibaba (ADR), Tencent, GoTo, MetaCRM, Unity Software, Cosmose , Netgear Inc, Centralnic, Nano Dimension and more

• Fujitsu earnings are out. Forecasts are in, lighter than consensus. 
• But there is a buyback. Looking at the way last year’s was executed is not that informative but it may be useful. 
• This one is big enough to matter but not big enough to get excited about until we get confirmation. 

• Recent research conducted by industry players – most notably OpenAI – about the impact of generative AI on labor markets provides a framework for gauging its monetization potential.
• We take a small step forward to apply them to two specific occupations in China including translators and computer programmers, which combined represent RMB1,400 bn TAM.
• For China’s internet giants such as Alibaba, generative AI could result in cost savings of up to RMB20 bn, or 14% of its FY2023 net profit.

• 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.
• Since peaking in January 2023, Tencent Holdings Ltd (700 HK) has produced a meaningful ABC correction that is yet to confirm its completion.
• We anticipate the correction confirming a MT bottom in the 302/330 range, ahead of a renewed multi-month uptrend. Our bullish multi-month target at 451.95 remains firm. 

• GoTo (GOTO IJ) reported 1Q2023 results yesterday. Gross revenue increased 14.3% YoY to IDR5.98trn while adjusted EBITDA losses further declined to IDR3.52trn from IDR5.94trn in 1Q2022.
• However, all growth matrices point towards a slowdown compared to the previous quarter with gross revenues of all segments and On-demand take rate declining QoQ in 1Q2023.
• With GoTo prioritising profits over growth, we expect the company’s growth rates to further decline and wonder if the company could hold it for long?

• Most Web3 brands rely on Web2 apps such as Google Forms, Telegram, and Discord for customer support.
• This makes customer relationship management (CRM) difficult due to rampant customer service fraud and the inability to identify end users across channels.
• Based in Taiwan, MetaCRM says its Web3 CRM products can connect on-chain and off-chain data to create blockchain-native solutions and analytics tools.

• Founded in 2022, Unity Software Shanghai Co. (Unity 3D/Unity China) is a Chinese company that provides a 3D development platform, and AR/VR solutions to the gaming industry.
• The company is a subsidiary of Unity Software (U US) and focuses on localisation Unity’s products and services to the Chinese market.
• The company was valued at around US$1bn at the time of its formation and based on deal terms, might go for a listing when its valuation hits US$3.6bn.

• Singapore-based Cosmose AI said it has received an undisclosed sum from nonprofit Near Foundation to build a payment system that allows users to shop with cryptocurrency at low transaction fees.
• The deal bumped Cosmose AI’s valuation to US$500 million from US$100 million at the time of its series A round.
• Using smartphone data, Cosmose AI analyzes foot traffic and engages consumers online, providing insights into offline shopping habits and driving footfall across 20 million venues in Asia.

• NTGR reported first quarter results asserting sell through was healthy but channel partners were not replenishing their inventory
• Heading into the results, we had cited the lack of deep discounts in the quarter as a sign that inventory had stabilized. 
• NTGR is entering the second quarter with no expectation of channel partners coming back with increased order flow

CentralNic’s Q123 trading update confirms management is delivering on its strategy of robust organic growth, coupled with strong cash generation, which has improved shareholder returns and further deleveraged its balance sheet. The group is confident that it is trading at least in line with current market consensus for FY23 and we maintain our forecasts, which are slightly ahead of consensus. CentralNic’s latest agreement with Microsoft Bing in Online Marketing lowers the group’s execution risk by diversifying its advertiser demand pool and adds to its growth potential.

Nano Dimension’s FY22 results show that its ‘buy-and-build’ strategy has delivered a quadrupling of revenues during the year. The pace of revenue growth may potentially accelerate following Nano Dimension’s recent bid for 3D printing giant Stratasys.