Daily Brief TMT/Internet: Intouch Holdings, Taiwan Semiconductor (TSMC), Tencent, ARM Holdings, Super Micro Computer, Hon Hai Precision Industry, Shengyi Electronics, Unifiedpost Group, Microstrategy Inc Cl A, Neos Corp and more

• Intouch (INTUCH TB)‘s strange journey with Gulf Energy (GULF TB) continues. In April 2021, GULF made a surprising VTO for INTUCH. This past July, the two companies announced an amalgamation. 
• The merger was not fair to INTUCH shareholders, with an estimated earnings value destruction of ~26.5% (for FY24E). But that didn’t stop shareholders overwhelmingly approving the 3rd October EGM resolutions.
• What now? The next step  is the low-balled VTOs for Advanced Info Service (ADVANC TB) and Thaicom (THCOM TB). Then amalgamation. Then, arguably, the next unorthodox development will take place.

• Following AMD AI conference on 10 Oct, many question AMD’s estimate of the AI Accelerators market reaching US$500bn by 2028 (from $45bn in 2023).  
• AI Accelerators market value is increasing by 150% in 2024, reaching US$113bn. Based on TSMC CoWoS capacity, we  think reasonable to expect 115% growth over 2025-26 or US$276bn in 2026.
• TSMC makes all the chips. HBM is dominated by Hynix. Nvidia should remain the dominant vendor for years. AMD and Broadcom should grow faster than NVDA. Outsourcing: Alchip, Marvel, Mediatek. 

• Tencent repurchased 250 million shares and the market has not paid any attention to its significant margin improvements.
• Lalatech updated its IPO file for 1H24, in which both GTV  and revenue were up by 18% YoY.
• Seres expects its revenue will grow by 518% YoY to 559% YoY for 3Q24.

• Arm Holdings plc recently reported its financial results for the first quarter of fiscal year 2025, showcasing a surge in revenue and solidifying its status as a key player in chip design, particularly with its focus on AI and CPU technology.
• The company’s revenue hit $939 million, up 39% year-over-year, a testament to both burgeoning license and royalty streams.
• Licensing revenue, often an indicator of future royalties, climbed by an impressive 72% due to increased demand for Arm’s technology across a multitude of applications including AI, data centers, and mobile devices.

• In a major development that’s turning heads on Wall Street, Super Micro Computer (SMCI) announced it is now shipping over 100,000 GPUs per quarter, specifically targeting the surging artificial intelligence (AI) market.
• This is a significant leap for the company as it seeks to capitalize on the growing demand for high-performance computing power required by AI training models and data-heavy applications.
• With AI dominating conversations across industries, GPUs have become critical components in data centers, and Super Micro’s ability to ship these units at scale, coupled with its competitive pricing, could potentially generate billions in revenue.

• Foxconn increases investments in Zhengzhou, shifting focus to electric vehicles from phones.
• Home solar energy storage options becoming more affordable with incentives.
• Luxgen’s N7 LR deliveries to start in November, Hikvision’s RD department facing layoffs.

• STAR 50 index is a tech-focused, blue-chip index in Mainland China which tracks the top 50 largest and most liquid names in the STAR market of the Shanghai Stock Exchange.
• STAR 100 index tracks the next 100 names (51st-150th ranks) and it represents the mid-cap segment of the STAR market.
• In this insight, we take a look at the potential ADDs/DELs for the STAR 50 and STAR 100 indices for the December 2024 index rebal event.

• Continuing the trend of having a noticeable focus on e-invoicing, I can present the Unifiedpost Group (‘UPG’) business.
• UPG founded in 2001 by existing CEO, Hans Leybaert (12% shareholder) and has scaled up over the years to what is now a business with over 1,000 employees operating in over 30 countries.
• Its products are predominately focused on e-invoicing (80% of revenue) with a base subscription revenue in order to access the platform and transactional component on top which allows the group to benefit from volume through a usage-based fee.

• MicroStrategy, founded by Michael Saylor, has gained attention for its large investment in Bitcoin
• The company’s core business has shown stagnant financial performance with flat revenue and decreasing profits
• Some analysts view MicroStrategy as a speculative bubble, but caution is necessary when taking short positions due to unpredictable market behavior

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• In 1H FY02/25, TECMIRA reported revenue of JPY5.6bn, a 34.4% YoY increase, with a net loss of JPY67mn.
• IoT & Devices segment revenue rose 13.9% YoY, with segment profit increasing 12.7% YoY due to improved production efficiency.
• AI & Cloud segment profit surged 594.4% YoY, driven by AI chatbot productization and infrastructure migration to Microsoft Azure.