In today’s briefing:
- Infocom (4348 JP) – The Meaning of ‘Binding Bids’ and ‘¥250bn’
- Yuanta Taiwan Div+ ETF Rebalance Preview: 5 Changes as Names Move Around; US$2.35bn Round-Trip Trade
- Taiwan Top 50 ETF Rebalance Preview: Asia Vital Components (3017 TT) In Back-To-Back Inclusion?
- Baidu Inc.: What Are Their Expansion Plans Of AI Offerings Beyond Ernie? – Major Drivers
- Tech Supply Chain Tracker (28-May-2024): Liquid cooling market to double by 2025, industry shakeout predicted.
- Qualcomm Leapfrogs Intel & AMD To Power The First Microsoft CoPilot + PCs
- iQIYI Inc.: Initiation of Coverage – How Are They Leveraging Generative AI capabilities? – Major Drivers
- Lalatech Compared to Full Truck Alliance, SF Intra-City, and GOGOX in Eleven Easy Charts
- Take-Two Interactive Software: Increased Relevance of Mobile and Strategic Titles
- Shift Up IPO – Peer Comparison – Small in Size but Ranks High on Growth and Margins
Infocom (4348 JP) – The Meaning of ‘Binding Bids’ and ‘¥250bn’
- A variety of articles of recent from private media sources have suggested that Teijin Ltd (3401 JP) has its 55% stake in Infocom Corp (4348 JP) up for auction.
- According to earlier articles, binding Second Round bids were due last week. According to an article out late last week, binding bids have been made, with some “around ¥250bn.”
- What that means for price may depend on what the “around ¥250bn” means. A brief exploration below.
Yuanta Taiwan Div+ ETF Rebalance Preview: 5 Changes as Names Move Around; US$2.35bn Round-Trip Trade
- With the review period now complete, there could be 5 changes to the Yuanta/P-Shares Taiwan Dividend Plus ETF in June.
- Price changes and changes to dividend estimates have led to names dropping off the list of potential adds and deletes over the last week.
- Constituent changes, capping and funding flows will lead to a one-way turnover of 12.7% and a one-way trade of US$1.17bn. There are 12 stocks with over 4x ADV to trade.
Taiwan Top 50 ETF Rebalance Preview: Asia Vital Components (3017 TT) In Back-To-Back Inclusion?
- Asia Vital Components (3017 TT) could replace Chang Hwa Commercial Bank (2801 TT) in the Yuanta/P-Shares Taiwan Top 50 ETF at the June rebalance.
- This ETF inclusion for Asia Vital Components (3017 TT) could come back-to-back with another index inclusion scheduled for the end of May.
- Shorts in Asia Vital Components (3017 TT) have been increasing recently while shorts in Chang Hwa Commercial Bank (2801 TT) are near their lows.
Baidu Inc.: What Are Their Expansion Plans Of AI Offerings Beyond Ernie? – Major Drivers
- Baidu’s revenue growth for the first quarter exceeded expectations, with a year-over-year increase of 4%, reaching RMB 23.8 billion.
- Additionally, Baidu’s continued efforts in Gen AI path have resulted in a 12% year-over-year acceleration in the revenue growth from Baidu AI Cloud, which also delivered an operating profit on a non-GAAP basis.
- These positive results signify the company’s successful transition from an internet-centric business to an AI-first business.
Tech Supply Chain Tracker (28-May-2024): Liquid cooling market to double by 2025, industry shakeout predicted.
- Liquid cooling market expected to double by 2025, but industry shakeout predicted by Auras chair.
- Apple plans to ship over 9 million units of OLED iPad Pro, aiming to boost its market presence.
- South Korea aims to enhance its IC design sector, currently holding just a 1% share of the global market.
Qualcomm Leapfrogs Intel & AMD To Power The First Microsoft CoPilot + PCs
- Microsoft last week launched their CoPilot+ PC category which enables their CoPilot to run locally on your PC, as long as it has an NPU with >40 TOPS
- With Qualcomm being the only one currently offering such an NPU, their Snapdragon processors will be powering the first wave of CoPilot+ PC’s
- It’s an extraordinary accomplishment for Qualcomm & likely an inflection point for Arm powered PCs. It’s also really bad news for Intel and not great for AMD
iQIYI Inc.: Initiation of Coverage – How Are They Leveraging Generative AI capabilities? – Major Drivers
- iQIYI, an innovative market-leading online entertainment service provider in China, delivered robust first-quarter 2024 results, achieving numerous record highs, such as non-GAAP operating income and its corresponding margin.
- CEO, Mr. Yu Gong, shared that the expanding margin could be attributed to the high-quality growth of the company.
- The Membership Services business continued its growth trajectory with monthly ARM observed an all-time high.
Lalatech Compared to Full Truck Alliance, SF Intra-City, and GOGOX in Eleven Easy Charts
- We compare Lalatech’s scale, P&L, Balance Sheet, and Cash Flow to peers
- On several measures, Lalatech is comparable to Full Truck Alliance, SF-Intra
- Small, unprofitable GOGOX not an appropriate comp for Lalatech, in our view
Take-Two Interactive Software: Increased Relevance of Mobile and Strategic Titles
- Take-Two Interactive Software Inc reported a healthy performance for the fiscal fourth quarter of 2024 with net bookings of $1.35 billion.
- The fiscal year 2024 saw net bookings of $5.33 billion.
- The performance for the period was attributed to the success of NBA 2K24, Zynga’s in-app purchases, Match Factory!, the Red Dead Redemption series, and the Grand Theft Auto series.
Shift Up IPO – Peer Comparison – Small in Size but Ranks High on Growth and Margins
- Shift Up (462870 KS) plans to raise up to US$320m in its upcoming South Korean IPO.
- Shift Up is a South Korean games developer, which as released three games so far for the global markets.
- In our previous note, we looked at the company’s past performance. In this note, we will undertake a peer comparison.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
