Daily Brief TMT/Internet: Shift Up, Plover Bay Technologies, Hon Hai Precision Industry, Intel Corp, GA Technologies, ADTRAN Holdings and more

• 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, undertaken a peer comparison and talked about valuations in our past notes. In this note, we talk about the refiling and other updates.

• We expect strong 30-35% YoY earnings growth in Plover Bay Technologies (1523 HK) for its earnings to be released in July for H1 FY24. 
• We expect the company to continue its 80% dividend payout ratio, which will result in a 4% semi-annual yield (8% annualized). 
• Trading at 12.2x with >50% ROEs and net cash of >30 mn USD, we expect the strong results to catalyze a further multiple rerate.

• Nokia and Foxconn are collaborating to manufacture 5G products in northern Vietnam, potentially boosting the country’s tech industry.
• Huawei’s entry into the automotive tier-1 market raises questions about its impact on traditional car manufacturers.
• The UK semiconductor industry and Taiwan Semiconductor Manufacturing Company (TSMC) are highlighted at London Tech Week, showcasing their importance in the tech world.

• Intel’s 2023 10K includes two new risk sections relating to its foundry plans and Smart Capital approach to funding them. 
• It labels its foundry plan as “Highly Risky” and rates its chances of success as “highly uncertain”
• They also helpfully warn that they have “limited experience” with the third party foundry business, just FYI

• Revenue for 1H FY10/24 was JPY85.9bn, up 35.5% YoY, with a business profit of JPY2.2bn, up 146.1% YoY.
• RENOSY Marketplace business revenue was JPY83.6bn, up 35.3% YoY, and ITANDI business revenue was JPY2.1bn, up 34.1% YoY.
• FY10/24 company forecast revised to JPY185.0bn in revenue and JPY3.7bn in business profit, with EPS unchanged at JPY45.90.

• Severe cyclical downturn impacting broadband/optical telecom equipment vendors
• Author believes ADTN has significant upside potential of 2.5x-5x from current price
• Expectation for ADTN to reach $1-$1.50 EPS power over next two years, confident in company’s ability to manage tight liquidity situation without diluting shareholders

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.