Daily Brief TMT/Internet: Mediatek Inc, Krafton , Taiwan Semiconductor (TSMC) – ADR, Asustek Computer, Tech Mahindra, TBO Tek, Vanguard Intl Semiconductor, Visa, Texas Instruments, SmartRent and more

• AI server cooling options include liquid & air solutions to improve efficiency and performance.
• India is set to introduce a new chip incentive package to boost its semiconductor industry.
• Apple’s supply chain expansion in Southeast Asia, especially Vietnam, has been significant, while MediaTek aims for 30% market share in China with upcoming flagship SoC.

• In this insight, we discuss the alpha generation through companies that announced share buybacks in Korea in March and April 2024.
• We provide a list of 30 stocks in the Korean stock market that have announced share buyback programs in the past two months.
• Major companies that have announced share buybacks in Korea in the past two months include Krafton (259960 KS), Celltrion Inc (068270 KS), and Woori Financial Group (316140 KS).

• Samsung 1Q24 results beat consensus by a wide margin and the company gave strong guidance for its Memory segment, guiding for further strength driven by servers, PCs, & phones needs.
• Guided strong demand for PC/Mobile Memory in 2H24E driven by on-device AI, which supports the case of edge AI hardware beginning to drive demand in addition to cloud/server-based AI hardware.
• Foundry segment’s losses reduced, but still loss-making? Samsung’s order backlog is at an all-time high but Samsung Foundry results suggest manufacturing yield performance likely well behind TSMC.

• Branded PC makers’ shares have been mostly lower in April, however Intel and Microsoft developments are providing strong signals for a future PC upgrade cycle into AI PCs.
• Over 60% of Fortune 500 companies are now using Microsoft’s CoPilot AI assistant; Intel expects the industry to exceed its prior forecast for AI PC shipments in 2024E.
• CoPilot is the killer app that will trigger a global enterprise PC upgrade cycle; The next generation of CoPilot will be an edge AI app that will require powerful hardware.

• Under Mohit Joshi’s leadership, Tech Mahindra (TECHM IN) targets a 15%+ EBIT margin and revenue growth surpassing industry averages by FY2027, with a focus on operational reform and portfolio integration.
• Project Fortius aims to achieve $250 million annual cost savings over 3 years, emphasizing high-margin services and organic growth, signaling a departure from  reliance on traditional acquisitions.
• This strategic shift towards operational efficiency and organic growth alters the company’s outlook, positioning Tech Mahindra for sustainable growth and shareholder returns, underlining a commitment to long-term value creation.

• TBO Tek (0395045D IN) is looking to raise approximately US$200m in its upcoming India IPO.
• TBO Tek is a global travel distribution platform. Its two-sided technology platform serves companies involved in the travel industry such as hotels, airlines, travel agencies and travel management companies.
• In our previous note, we talked about the company’s historical performance. In this note, we talk about its refiling updates and undertake a peer comparison.

• 1Q24 sales reached 96% of 4Q23, the recent low of sales, but GM upside 1% QoQ.   
• Demand is gradually picking up in 2Q24F, but inventory adjustments for industrial and automotive applications are ongoing.  
• Specifically speaking, in 2Q24 we expect to see a revival in demand, with QCOQ and MPS potentially beginning to place orders in Fab 5.

• Visa’s Fiscal Second Quarter 2024 Earnings indicate that Visa appears to be standing on solid financial ground with plenty of room for growth.
• The leading global payments technology company recorded $8.8 billion in net revenue for the quarter, marking a 10% increase.
• Its GAAP Earnings Per Share (EPS) rose by 12%, while non-GAAP EPS also saw an upward movement by 20%.

• Texas Instruments (TI) reported a first quarter of 2024 revenue that met expectations, despite witnessing a 10% sequential and 16% year-over-year decrease to $3.7bn.
• Revenue declined across all of its end markets as customers continued to pare their inventory levels.
• In terms of individual revenue components, Analog revenue declined 14% year-over-year, Embedded Processing declined 22%, and the Other segment declined 33% from the year-ago quarter.

• SmartRent aims to increase their market share in the smart home solutions industry, specifically in the multifamily real estate sector in the US
• They leverage their innovative Smart Home Operating System to lower costs for landlords and increase revenues through enhanced property management capabilities
• SmartRent’s three business lines offer a comprehensive and scalable solution for property owners, with a focus on professional services, hardware sales, and hosted services to capitalize on the growing demand for smart home technologies in the real estate market.

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.