Daily Brief TMT/Internet: Kioxia Holdings , Taiwan Semiconductor (TSMC) – ADR, Kaonavi Inc, Ibotta , Nasdaq-100 Stock Index, Talabat Holding, Acer Inc, ServiceTitan, Micronics Japan, Asustek Computer and more

• Kioxia has been under-investing in Capex (27% of revenue versus competitors 37%) and R&D (5% versus 11%) because Free Cash Flow is low, too low to pay back debt. 
• The Memory cycle peaked in June-24 and NAND prices have been declining since. Memory stocks (Micron, Samsung, SK Hynix) peaked in June. 
• The valuations multiples that reconcile with a US$4.9bn market value are half or one-third that of competitors. A huge discount is applied, reflecting the financial and technological weakness of Kioxia. 

• US Set to Unveil New Wave of Semiconductor Restrictions on China
• Hon Hai Subsidiary Says Progress for Nvidia GB200 Servers is Smooth, Mass Production in 2025E
• PC Monitor: Dell & HPQ Highlight Sharp Divide Between Corporate and Consumer PC Demand; Shares Slump 

• On Monday, I had the great pleasure to speak to Kaonavi’s (4435 JP – US$131 million) CFO, Kimitaka Hashimoto.
• He provided color on Kaonavi’s second-quarter earnings result, which were released on 13 November and led to a negative reaction from the market.
• In short, Kaonavi is a Japanese developer of talent management software. It helps companies manage their employees by solving staffing problems, designing their organizational structure, performance reviews, surveys, training, internal recruitment, etc.

• Ibotta operates a performance network connecting consumers with CPG companies and retailers for digital promotions and cashback rewards
• Despite a successful IPO, Ibotta has seen a significant derating due to failing to meet expectations
• Strong partnerships, growing user base, and unique business model suggest potential for a 56% upside towards a price target of $90 and eventually $120

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.

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• Talabat Holding, one of the leading food delivery platforms in the MENA region, is getting ready to complete an IPO in Dubai. 
• IPO price is between AED 1.50 ($0.41) and AED 1.60 per share. At the high end of IPO price range, Talabat could raise up to AED 7.5 billion (US$2 billion).
• The final IPO offer price will be announced on Friday (29 November). This IPO is expected to start trading on 10 December. 

• India’s PC market shows growth in 3Q24, indicating signs of recovery in the industry after a challenging period.
• Taiwan’s aerospace industry experiences a surge in ambitions amidst global security worries, highlighting the region’s competitive edge.
• Samsung makes changes in leadership with new foundry CTO appointment, signaling a strategic shift in the company’s direction.

• ServiceTitan, a VC-backed cloud-based software company for the home and commercial service industries, files to go public and may raise up to $500M.
• The company serves many trades, including plumbing, HVAC, garage doors, landscaping, pest control, water treatment, heating, construction and others.
• ServiceTitan is well positioned as a leader at scale in the trade industry. They currently operate in the United States, Canada and see significant opportunity in international markets.

• Cumulative Q3 FY12/24 sales increased 52.7% YoY, with operating profit up 224.6% YoY, driven by memory probe cards.
• Segment sales reached JPY37.4bn (+53.9% YoY), with memory probe card sales at JPY11.0bn (+54.6% YoY).
• Full-year FY12/24 forecast remains unchanged, with sales progress at 70.9% and operating profit at 74.5%.

• Soft PC Results from Dell and HPQ and Delayed Industry PC Upgrades into  2025E; Dell and HPQ Shares Fall Sharply
• Conclusion: Both Firms Confirm Relative Strength for Commercial and Weakness for Consumer; AI PCs and Windows 11 to Drive 2025E Upgrades
• Asia PC Makers Showing Stronger Growth; However, Dell & HPQ Share Rout May Weigh on Sentiment