Daily Brief TMT/Internet: Nippon Electric Glass, A8 New Media, Nazara Technologies, Servicenow Inc, SK Hynix, At&T Inc, Chenbro Micom, Fiserv Inc, International Business Machines and more

• Today, Nippon Electric Glass (5214 JP) announced an on-market buyback of up to 7.0mm shares (8.08%) spending up to ¥20bn from tomorrow through end-January 2025.
• An impressive headline, but fewer shares. Importantly, this follows a ¥20bn buyback from last November. They are moving through their MTMP more quickly than expected.
• This new buyback is worth about 25% of the inbound cross-holdings. And some of those holders plan to sell. This may be designed to let them sell in the market. 

• A8 New Media (800 HK)’s IFA opines that Mr Liu Xiaosong (Chairman and CEO)’s HK$0.36 privatisation offer to be fair and reasonable. The vote is on 23 August. 
• Key conditions include approval by at least 75% of disinterested shareholders (<10% of disinterested shareholders rejection).
• No shareholder holding a blocking stake, low AGM minority participation rate and the massive 162.8% takeover premium suggest a done deal. At the last close, the gross/annualised spread is 5.9%/36.0%.

• Shares of Nazara Technologies (NAZARA IN) were rattled last week after the company had received show cause notice from the GST Department on 16th July.
• The GST liability pertained to two of its subsidiaries and summed up to INR 11.2 bn, which represents under 50% of consolidated net-worth.
• However because the GST for the industry is a delicate and debatable matter, the actual impact on the financials cannot be ascertained now, but company faces a high legal risk.

• ServiceNow’s second quarter of 2024 financial results indicate strong operational and financial momentum, with notable increases in important metrics despite a backdrop of an internal investigation and leadership changes.
• The management presented a robust narrative of growth, leveraging its GenAI strategy, which contributed significantly to their overall performance.
• The company reported a 23% year-over-year growth in subscription revenue at constant currency, surpassing their own guidance.

• Despite a negative share price reaction, following its 2Q2024 earnings report, SK Hynix (000660 KS) remains firmly amid an earnings upgrade cycle.
• With SK Hynix entering oversold territory, near-term momentum indicators are displaying bullish signals.
• SK Hynix trades at nearly one standard deviation below its 5-year historic average EV/EBITDA ratio and a discount to global peers.

• AT&T offers a range of telecommunications services, including wireless, fiber, and broadband
• The company’s market position, technological advancements, and capital return potential make it a strong investment opportunity
• Despite being undervalued, AT&T has a significant presence in Latin America and expects steady EBITDA growth

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.

• 10-15% Market Share for Server Chassis — Chenbro is one of the leading producers of server chassis in the world.
• Key Nvidia Development Partner — Chenbro produces servers for most major data center names including AWS and China’s BAT, as well as for Nvidia servers and architecture.
• New Server Market Color to Be Released Soon — The company is well positioned to expand capacity as the market expands and is expected to release 2Q24E earnings in early-August.

• Fiserv, a global provider of payment and financial services technology solutions, reported a robust set of results for its second quarter, pointing towards continued growth and expansion across its portfolio.
• The company announced an adjusted EPS of $2.13, reflecting an 18% increase year-over-year, bolstered by 7% adjusted revenue growth and a significant 160 basis points improvement in adjusted operating margins to 38.4%.
• These figures demonstrate a solid trajectory towards achieving double-digit organic revenue and adjusted earnings per share growth.

• International Business Machines Corporation (IBM) recently discussed its financial outcomes for the second quarter of 2024, presenting a mix of strengths and areas for improvement that inform its current investment thesis.
• IBM’s leadership emphasized robust performance in their Software and Infrastructure segments, demonstrating significant revenue growth fueled by continuous innovations in artificial intelligence (AI) and hybrid cloud technologies.
• However, the Consulting segment showed weaker dynamics, reflecting a more cautious spending environment among clients regarding discretionary projects.

• AT&T’s Q2 2024 earnings revealed mixed results as the telecom giant continues to push boundaries in its wireless and broadband sectors.
• The net additions of high-value wireless and broadband subscribers underscore a robust influence of its investment-driven growth strategy, even as the company witnessed minor downshifts in other service areas.
• In the wireless segment, AT&T reported an encouraging addition of 419,000 postpaid phone subscribers.