Daily Brief TMT/Internet: Kokusai Electric , NVIDIA Corp, MoneyHero , CELSYS, ARM Holdings, Flex, Silicon Motion Technology, Macnica Holdings Inc, Juniper Networks, SS&C Technologies and more

• IPO lock-up expiry of Kokusai Electric (6525 JP) results in a forecasted increase in free float to 35% and fcap of $2.9bn for the August 2024 review. 
• Secondary offering of Kokusai Electric (6525 JP) results in a forecasted increase in free float to 60-65% and latest fcap of $3.4bn- $3.7bn for the November 2024 review. 
• Inclusion will be determined based on fcap against the fcap threshold. Fcap uncertainty for November is largely driven by stock price fluctuations and the Greenshoe Option. 

• The Technology Select Sector SPDR (XLK US) ETF tracks the Technology Select Sector Index and has an AUM of over US$65bn.
• The recent drop in NVIDIA Corp (NVDA US) has taken its market cap and free float market cap lower than Microsoft Corp (MSFT US) and Apple (AAPL US). 
• If that continues to be the case on 13 September, there will be huge outflows for NVIDIA (NVDA) and huge inflows for Apple (AAPL) at the close on 20 September.

For our next Corporate Webinar, we are glad to welcome MoneyHero Group’s CEO and Director, Mr Rohith Murthy and CFO, Mr Hao Qian.

In the upcoming webinar, Rohit and Hao will share a short company presentation after which, they will engage in a fireside chat with Smartkarma Insight Provider, Ishan Majumdar. The Corporate Webinar will include a live Q&A session.

This Corporate Webinar will be hosted on Tuesday, 13 August 2024, 15:00 SGT. 

About MoneyHero Group

MoneyHero Group connects people to a better financial future. The mission at MoneyHero Group is to make all of life’s financial decisions a time saving and rewarding experience. MoneyHero Group educates consumers about personal finance, helps them decide which products are best suited for their needs, and facilitates getting the product. They connect financial institutions with their target customers and help them achieve their customer acquisition objectives.

• Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
• SUNWELS Co (9229 JP) and Macbee Planet (7095 JP) moved to the Prime market in July 2024 which means there will TOPIX Inclusions at the end of August 2024.
• Our pre-event pick CELSYS (3663 JP) has seen its price fall by more than 20% during the recent market sell-off and it is close to a key share price threshold.  

• Arm’s revenue of $935M marks a 39.1% YoY increase, driven by a significant 70% rise in license revenue. Earnings of $0.40 exceeded expectations, reflecting a robust 67% YoY growth.
• Arm’s R&D investments in AI workloads drive future royalty growth, with v9 and compute subsystems enhancing licensing value amid strong AI demand, particularly in data centers.
• Shares dropped 13% as Q2 revenue guidance of $780M-$830M and FY25 revenue guidance of $3.8B-$4.1B were below market expectations.

• Flex Ltd. reported solid financial results, reflecting a combination of strategic positioning and operational resilience.
• The company delivered $6.3 billion in revenue for the quarter, slightly exceeding expectations, while achieving an adjusted operating margin of 4.8%.
• This translated into an adjusted earnings per share (EPS) of $0.51, which is a 9% increase year-over-year.

• Silicon Motion reported 2Q24 results on Friday, describing strong demand for NAND flash controllers driven by the PC industry and improving demand from the smartphone industry.
• The company expects industry NAND flash pricing to continue improving into 2025E. Moreover, SIMO expects to expand its market share for NAND flash controllers by year-end.
• Maintain Structural Long rating for SIMO. The recent share price decline is painful for holders however share weakness is an accumulation opportunity with an investment view to mid-2025E.

• In line with the company’s plan –Semiconductors saw a lower segment OP margin (7.3% Q1 FY3/24, 4.0% Q1 FY3/25) with a revenue decline in profitable Industrial (-34.8 YoY) due to weakness in the semiconductor market.
• Compared to the previous quarter, the segment OP margin declined (5.4% Q1 FY3/24, 4.0% Q1 FY3/25) with poorer sales due to a higher contribution from less-profitable Memory.
• However, the revenue decline in Industrial was less pronounced (-2.7% QoQ), a sign of bottoming out. 

• Juniper Networks reported its third-quarter results for 2023, delivering a performance that outperformed expectations in a challenging macroeconomic environment.
• Juniper Networks showcased a robust total revenue of $1.398 billion for the quarter, which exceeded the midpoint of its guidance.
• The company experienced better-than-expected non-GAAP gross and operating margins, contributing to a non-GAAP earnings per share of $0.60, surpassing the high end of its quarterly guidance range.

• SS&C Technologies reported encouraging results for the second quarter of 2024.
• The company experienced a record adjusted revenue of $1.4524 billion, which grew by 6.5% and surpassed expectations by $20 million.
• Adjusted diluted earnings per share also saw a significant increase of 17.6% to $1.27.