Daily Brief TMT/Internet: Samsung Sds, Lasertec Corp, Erajaya Swasembada, ASML Holding NV, Huawei Technology, Accenture Plc Cl A, Esker SA, Digital Turbine, Appian Corp, Lumentum Holdings and more

• Insiders holding more than 10% of SO must disclose block deals 30 days in advance if they plan to sell more than 1% of SO or an amount exceeding ₩5B.
• The trading window and pricing range for short positions, based on the assumption of deal-taking, will likely vary significantly as the timing of price reflection will see a drastic change.
• There is an increasing likelihood that major shareholders will accelerate their planned block deals and bring them to the market in abundance before October.

• Lasertec (6920) is a shoo-in for Nikkei 225 inclusion in September according to the quantitative analysis. The amount to buy is a small multiple of ADV, making the inclusion “unimpressive.”
• It is probably worth looking at the details of ownership, of volume, and of relationship to other stocks in the same general sector.
• It is also worth thinking about flow channels (stock up or down changes flows) and forward fundamental calculations.

• Erajaya recently released its 1Q2023 results with net sales increasing by +29% YoY but with -20.5% decrease in net profit due to increased opex related to its expansion and inventory build.
• The company plans to add 400 new outlets this year, lower than last year’s 575, as it ramps up its newer stores, which should help to improve profitability in 2H2023.
• Erajaya continues to add to its stable of brands outside mobile handsets, including JD Sports, Wellings, Grand Lucky, The Face Shop, Paris Baguette, and has launched EraBlue with Mobile World.

• FY’23 growth forecast increased despite push outs in the EUV order book and lower than expected IBB revenues.
• Broad-Based recovery is now looking more like a H1’24 scenario with lingering uncertainty as to how it quickly it will unfold thereafter
• System sales to China increased from 8% of revenues in Q1’23 to 24% in Q2’23. Non-China DUV order cancellations are being snapped up by China at an unprecedented rate. 

• Huawei Technologies Co. Ltd. on Tuesday launched the first commercial use of its artificial intelligence (AI) large language model (LLM) Pangu for the mining industry, as it seeks to make use of the next-generation technology to improve the sector’s safety and productivity.
• Developed in partnership with state-owned Shandong Energy Group Co. Ltd. and its unit Yunding Technology Co. Ltd. (000409.SH), the Pangu Mine Model has been deployed in the coal giant’s mines in East China’s Shandong province, Huawei said in a press release Wednesday.
• It also touted the launch as the world’s first commercial large AI model for the energy sector.

• Accenture managed to exceed analyst expectations in terms of revenue as well as earnings.
• Even though the macroeconomic environment remained unclear, the company continued to make large investments in its business and generated good revenue and sales, together with robust profitability and very strong free cash flow.
• Accenture produced $16.6 billion in sales, representing 5% growth, with North America expanding at 2%, Europe at 7%, and Growth Markets at 9%, all in local currency.

Esker continued to make good progress in Q223, with constant currency (cc) year-on-year revenue growth of 15% (the same as in Q123). Order intake on an annual recurring revenue (ARR) basis was 14% higher cc for Q223 and 18% higher for H123. The company narrowed its organic cc revenue growth guidance for FY23 to the upper end of the previous range (now 14–15%) and maintained its operating margin expectations. We maintain our revenue and EPS forecasts and raise our dividend forecasts.

• Digital Turbine delivered a mixed set of results for the previous quarter, with revenues above analyst expectations but below-par earnings.
• The company had an 11% decline in fiscal ’23 revenue due to soft advertiser spending and macro headwinds impacting their On Device Solutions and App Growth Platform businesses.
• Digital Turbine aims to build alternative app stores with equity positions in companies like Aptoide, easing app porting and payment management and tapping into the in-app purchasing market.

• Appian Corporation managed to surpass the revenue expectations and the earnings expectations of Wall Street.
• Appian reported a 31% year-over-year increase in cloud subscription revenue in the quarter, reaching $69.7 million.
• Cloud subscription revenue is anticipated to reach $72 million to $74 million in the second quarter of 2023, reflecting a 26% to 30% increase year over year.

• Lumentum Holdings delivered a disappointing set of results as the company was unable to meet the revenue as well as earnings expectations of Wall Street.
• The company’s commercial lasers business is also expanding into high-growth areas such as solar cells, advanced semiconductors, electric vehicles, and display manufacturing.
• We give Lumentum Holdings Inc. a ‘Hold’ rating with a revised target price.