Daily Brief TMT/Internet: LS Materials, Hollysys Automation Technologies, Elite Material, Appier Group, United Microelectron Sp Adr, SK Hynix and more

• LS Materials is getting ready to complete its IPO in Korea in late November. The IPO price range is from 4,400 won to 5,500 won per share. 
• According to the bankers’ valuation, the expected market cap after the IPO is from 298 billion won to 372 billion won. 
• LS Materials is one of the largest players globally in the large-size ultracapacitors, which stabilize power supply and are used to replace and supplement primary batteries and lithium-ion batteries.

• Hollysys Automation Technologies (HOLI US) update notes a new MBO proposal at US$25 per share, a bidders shortlist in several weeks and an update on the special meeting. 
• The update suggests several potential bidders and enough shareholders with the required record date to convene the special meeting to appoint independent directors. 
• The MBO proposal, while potentially a delaying tactic, suggests that the Board are under pressure for a solution and is aiming for a friendly takeover. 

• Using data from the close on 25 October, there could be 6 adds and 5 deletes to the Yuanta/​P-Shares Taiwan Dividend Plus ETF in December.
• There will also be capping and funding flows that will lead to a one-way turnover of 19.5% and a one-way trade of US$1.39bn.
• A long adds/ short deletes trade is up double digits over the last three weeks and there are a few trade adjustments based on the new rankings.

• Appier’s stock initially surged 20% following strong Q2 results but later declined 25%, influenced by small-cap stock volatility, AI-induced valuations, and e-commerce sensitivity.
• The AI company’s competitive position remains strong compared to Braze; the differing stock price performance and valuation suggests significant upside.
• Appier’s thesis remains intact and we expect the company to benefit from key trends in consumer marketing, first-party data and AI solutions.

• UMC believes that the early signs indicate the end of inventory correction for smartphones and PCs. 
• The total wafer loading continues to decrease, but pricing for 12″ wafers remains firm. As a result, the average selling price (ASP) continues to increase slightly. 
• The demand for strength lies in computing, thanks to the LCD controller, codec, Wi-Fi, touch IC controller, and communication applications driven by RFFE and networking IC.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Adani Green Energy
• SK Hynix