Daily Brief TMT/Internet: NVIDIA Corp, Asmedia Technology, Akatsuki Inc, Shift Up, Samsung Electronics, Darktrace, LY , United Microelectronics Corp, Datatec Limited and more

• Nvidia reported earnings, and as expected, they beat earnings. Did you think that Jensen would fail us now?

• On a more serious note, the guide was a bit light regarding buy-side bogeys, but there is almost nothing to complain about this result.

• Below is the StreetAccount summary, and you can see it’s a clean beat by every metric.

• Asmedia Technology (5269 TT) is looking to raise up to US$335m in its global depository receipts (GDRs) offering.
• Overall, the deal would be a relatively small one for the stock to digest at just 5.6 days of its three month ADV.
• In this note, we run the deal through our ECM framework and comment on deal dynamics.

• Akatsuki Inc (TYO 3932) is a net-net Japanese video game developer with 10 years of profitability.
• They’re undergoing a big transformation in an effort to better compete globally by investing enormous amounts into their core development capabilities and increasing their average budget per game 3-6x.
• They recently formed a capital alliance with Sony (6758) and Koei Tecmo (TYO 3635) with each taking a 10% and 8% stake respectively.

• Shift Up (462870 KS) is Korea’s leading game development studio. It is seeking to raise up to US$320 million.    
• Shift Up now focuses only on game development and has a policy of publishing games in cooperation with global partners such as Tencent (700 HK) and Sony Corp (6758 JP). 
• The investment case rests on a stellar game development track record, several growth drivers, high profitability and cash generation.

• Samsung aims to revolutionize memory technology by launching 1,000-layer 3D NAND by 2030, utilizing innovative materials for enhanced performance.
• Lenovo expands its market reach with AI PCs targeting a global audience, but faces stiff competition amidst concerns over Indian restrictions on imported PCs and notebooks.
• TSMC’s collaboration in Taiwan on 7nm tech brings together academia and industry, while China, Japan, and South Korea look to strengthen supply chains at a summit for mutual benefit. Samsung aims to increase its presence in China through collaboration.

• The SE600 index is one of the most widely followed benchmark indices in Europe. This index is rebalanced on a quarterly basis.
• The base date for rankings for the June 2024 index rebal event is 31st May 2024. In this insight, we take a look at the latest list of potential ADDs/DELs.
• Currently, I see 7 ADDs and 7 DELs for the SE600 index. There are more names just outside the border requiring small price changes to get involved in index changes.

• LY (4689 JP)‘s Yahoo Shopping looks to be in trouble after five straight quarters of negative growth while Amazon and Rakuten move ahead.
• Despite a revenue increase in 4Q2023, Yahoo Shopping continues to struggle with merchant fraud and a lack of a clear USP.
• If effective integration between the many parts of LY is not forthcoming soon, the company may eventually attract demands for better synergies, as well as a stick-wielding Softbank.

• UMC is currently forecasting a flat to low single digit growth QoQ for 3Q24, which is slight lower than consensus.
• UMC has received orders from domestic and international clients. However, we believe it couldn’t be able to compensate for the loss of Samsung’s 28nm orders so far this year.
• With accelerated construction in Singapore in 2024, the full-year capital expenditure has slightly risen to $3.3 billion.

• Shift Up (462870 KS) plans to raise up to US$320m in its South Korean IPO.
• Shift Up is a South Korean games developer, which as released three games so far for the global markets.
• We have looked at the company’s performance in our past notes. In this note, we talk about valuations.

Datatec reported FY24 revenue growth of 6%, with a strong performance from Westcon, a good performance in Logicalis International masked by a higher level of net revenue software sales and a mixed performance in Logicalis Latin America. Group gross profit grew 16% y-o-y and adjusted EBITDA grew 7%, resulting in a flat adjusted EBITDA margin of 3.5%. Underlying EPS of 20.2c more than tripled versus the prior year and good control of working capital resulted in year-end net debt of $123m. The company announced a dividend of ZAR1.3/US$0.07. Despite the difficult political and economic environment, management expects to see improved performances in each business in FY25 and continues to focus on unlocking shareholder value as part of its ongoing strategic review.