Daily Brief TMT/Internet: L&F Co Ltd, Money Forward, TDC A/S, Chipmos Technologies, iQIYI Inc, Nano Dimension , Taiwan Semiconductor (TSMC) – ADR, Carly Holdings and more

• On 19 July, there were local media accounts that L&F Co Ltd (066970 KS) is considering on switching its listing from KOSDAQ to KOSPI. 
• L&F’s main business involves making cathode active materials for rechargeable batteries.
• Despite this positive move, we believe the valuations of L&F have become too high. Its operating margins also worsened from 9.6% in 1Q 2022 to 3.0% in 1Q 2023. 

• Money Forward (3994 JP) reported 2QFY11/2023 results yesterday. Revenue increased 43.5% YoY to ¥7.3bn (vs consensus ¥7.18bn) while operating losses dropped to ¥1.58bn vs ¥2.15bn in 2QFY11/22 (vs consensus ¥1.65bn).
• 2Q revenues were within its guidance of ¥7.1-7.4bn and MF has revised its FY11/23E guidance upward based on the progress made during the first half of the year.
• MF’s non-BO business margins continue to decline, and the plan to revise price plans for sole proprietors in December should result in attrition and further increase in advertising spend.

• Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
• We assess TDC NET’s ESG as “Adequate”, in line with its Social and Governance scores. The company has a “Strong” Environmental score. Controversies are “Immaterial” and Disclosure is “Strong”.
• TDC NET is a Danish mobile and fixed network service provider. It was formed through the split of Denmark’s incumbent telecommunications company into a netco and servco.

• We had a call with ChipMOS management about their latest long-term R&D efforts and drivers. 
• We see many of the company’s key clients’ businesses turning a corner, hence see these developments likely to benefit ChipMOS.
• The company will be reporting earnings on August 3rd, we have an Outperform rating for the shares. Could see some continued margin weakness, however we believe forward outlook is improving.

• We raise iQIYI’s membership/ads growth in 2Q23 from 12.9%/10.6% to 15.7%/22.4% YoY because of high quality content and recovery of major advertisers.
• We upgrade iQIYI’s rating to BUY because:1) iQIYI exhibits advantages in content quality and production capabilities. 2) Major advertisers are expected to increase their advertising budgets continuously.
• Emergency of mini drama is another variable for the Chinese online video industry. However, we anticipate the impact on iQIYI is relatively limited currently.

Nano Dimension has raised its tender offer for Stratasys again, increasing its cash offer from $24 to $25 per share and extending the closing date to 31 July. If successful, it plans to explore options for further consolidation of the industry. If unsuccessful, it will review its Stratasys investment and may sell its stake on the open market.

• TSMC will report its 2Q23 results today in the afternoon Taiwan time. Look for key readthroughs from the company in terms of robustness of the AI boom and PC recovery.
• AMD’s Chairman and CEO arrived in Taiwan and met with key supply chain partners — Related stocks are surging; ASML beat expectations and raised its guidance.
• Taiwan AI,  PC-linked, and AMD-linked shares are flying; Our recent Memory Monitor piece also highlights signs that the DRAM cycle has bottomed.