In today’s briefing:
- MediaTek (2454.TT): Gaining Google TPU V7 Project Entirely Could Be a Misconception
- KOSPI 200 Rebalance Candidates in December 2023 & Changes to the KOSPI 200 Rebalance Process
- Splunk and $28B Mega Deal: Will Cisco Overpay For San Francisco-Based Software Company?
- IPG Photonics Corporation: The E-Mobility Surge Pushing the Revenue Boundaries! – Major Drivers
- Trimble Inc.: Can The New LIMS PRO Become A Major Growth Catalyst? – Major Drivers
- ZoomInfo Technologies Inc.: The Brand Makeover to Establish Dominance in Go-To-Market! – Major Drivers
MediaTek (2454.TT): Gaining Google TPU V7 Project Entirely Could Be a Misconception
- There is a misconception that “MediaTek is gaining the Google TPU v7 project entirely in 2024-25F.”
- Transsion Holding is placing a new order with MediaTek in 4Q23F, which is larger than ~25mn and has the lowest ASP.
- Our current view remains bearish on smartphone demand for 2H23F.
KOSPI 200 Rebalance Candidates in December 2023 & Changes to the KOSPI 200 Rebalance Process
- Korea Exchange is planning to change the criteria for rebalancing stocks in the KOSPI 200 index.
- The purpose of this change is to prevent stocks that surge ahead of the actual KOSPI 200 inclusion but fall significantly after the inclusion announcement.
- We think there is a 70-80%+ probability that POSCO DX and L&F Co will be included in KOSPI 200 index in December 2023.
Splunk and $28B Mega Deal: Will Cisco Overpay For San Francisco-Based Software Company?
- Splunk shares outperformed in 2023 and rose ~69% as total ARR exceeded $4B, operating loss narrowed, and FCF margin improved. The company executed well to drive long-term durable growth.
- Over the past 2 years, Splunk transformed itself into a cloud company. In 2022, WSJ reported that Cisco made a $20B+ takeover offer. However, no deal was on the table.
- Following M&A rumors, the company’s cloud transition, and strong fundamentals, Cisco offered a $157 per share to acquire Splunk in a $28B mega all-cash deal on September 21, 2023.
IPG Photonics Corporation: The E-Mobility Surge Pushing the Revenue Boundaries! – Major Drivers
- IPG Photonics Corporation delivered a mixed set of results for the previous quarter, with revenues below the analyst consensus.
- They achieved substantial revenue growth in the welding and cleaning applications, led by robust e-mobility and handheld welding solution sales.
- Additionally, 3D printing and solar cell manufacturing applications have seen increased revenue as a result of better investments in these industries.
Trimble Inc.: Can The New LIMS PRO Become A Major Growth Catalyst? – Major Drivers
- Trimble delivered a strong result and managed an all-around beat in the last quarter.
- Financially, Trimble demonstrated a robust performance, delivering an EBITDA margin of 25.3% and a strong gross margin of 64.2%, surpassing previous years.
- In the quarter, Trimble introduced LIMS PRO, a cloud-hosted iteration of its LIMS for sawmill raw material procurement.
ZoomInfo Technologies Inc.: The Brand Makeover to Establish Dominance in Go-To-Market! – Major Drivers
- ZoomInfo Technologies delivered a mixed set of results in its most recent result, with revenues falling short of Wall Street expectations but above-par earnings.
- In the second quarter, ZoomInfo reported $309 million in revenue and an adjusted operating income of $126 million, boasting a margin of 41%.
- While examining customer health, the company anticipates that budgetary constraints and downward renewal pressures will persist in the near future, resulting in adjusted full-year expectations of 12% revenue growth.
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