Daily Brief TMT/Internet: OneConnect Financial Technology, China Mobile, Taiwan Semiconductor (TSMC) – ADR, Tencent, Xiaomi Corp, Palantir Technologies , Micron Technology, DeepSeek and more

• OneConnect received a non-binding acquisition proposal from Ping An Group at $7.98/ADS, requiring 75% shareholder approval.
• Ping An acquired OneConnect’s virtual banking division for $119m and terminated its cloud services contract in 2024.
• The buyout is financially attractive for Ping An, acquiring OCFT at net cash levels, with a US$100m consideration.

• China Mobile (941 HK) / China Mobile (600941 CH) will release 2024 results on Thursday 20 March 2025. 
• Historically, the stock shows minimal post-earnings volatility, with rare exceptions. Options markets project moderate movement. Opportunities exist for investors with strong directional conviction.
• Given China Mobile’s recent history of dividend increases and strong stock performance, a significant dividend boost is possible.

• TSMC: +19.4% Premium; Consider Shorting if Spread Rises Above 20%
• ASE: +0.5% Premium; Ideally Wait for Lower Level But Near-Zero Still a Long Opportunity
• ChipMOS: -0.8% Discount; Wait for More Extreme Levels; Short Interest Spiking in Local Shares

• We take a detailed look at the implied earnings move priced into Tencent options compared to historical outcomes.
• Post-Earnings price movements are analyzed to assess directional tendencies and magnitude based on earnings beats and misses.
• An interesting post-earnings pattern emerges, with an options strategy outlined.

• In 4Q24, all business lines grew even faster than we expected in the preview note.
• We are confident in its revenue growth and operating margin in 2025.
• We however still believe the market overvalues its electric vehicle business.

• Palantir,  the secretive US tech giant, has dropped 30% in the past month, but with a PER of over 150 times, it could well have much, much further to fall.
• In the past year, no company executives have bought shares in this firm. Plenty have sold, though. In fact, as a group, they’ve dumped $3 billion worth of the stock.
• Here’s what Palantir does, what it should earn, its current valuation – and what all of that should tell you as an investor.

• Google Diversifying from Broadcom to Mediatek for Next Generation AI Chip
• Hon Hai CEO: Clients’ U.S.-Based Tech Manufacturing Set To Expand
• Memory Monitor: Multiple Reports Indicate Rising NAND & DRAM Prices

• Key Memory Names Have Rebounded; Micron and SK Hynix Lead
• NAND Flash Memory Prices to Increase; NAND Flash Pricing to Improve in 2H25E
• Memory Monitor Universe: NAND Flash Price Improvement Favors Long SK Hynix and Micron vs. Short Nanya Tech

• China Mobile (941 HK) is about to release its 2024 results and as argued by Gaudenz Schneider in his latest insight the stock usually displays minimal post-earnings volatility.
• Our model shows room for higher prices, up to 86.95, but this needs to happen very quickly because the stock may pullback after the end of this week.
• The stock is in a bullish pattern according to our model, it should continue to rally after the pullback, if results are good, so this is a tactical opportunity.

• Deep Seek is a self-funded AI lab in China that originated from a quantitative hedge fund called High Flyer
• They have fast thinking models (V1, V2, V3) and reasoning models (R1) with the R1 model developed through reinforcement learning
• Deep Seek’s innovative approach and talented team have been working on AI research for a considerable amount of time, leading to their success in the field.

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