In today’s briefing:
- Softbank (9984 JP): This Time, It’s Different
- Lasertec. Colossal Fraud Or Multi-Award Winning Mask Inspection Supplier?
- What Did FSS Point Out to Shift Up? & What Impact Would It Have on Bookbuilding Sentiment?
- TOPIX Inclusions: Who Is Ready (June 2024)
- TSMC (2330.TT; TSM.US): ASML’s High-NA EUV Machine Will Not Be Required Until 2027 at TSMC.
- Tech Supply Chain Tracker (07-Jun-2024): Air Liquide to invest $250M in US location for Micron gas.
- Altium (ALU AU): Scheme Vote on 12 July
- Salesforce.com Inc.: Integration & Implementation Of platforms
- Dell Technologies: A Disappointing Performance But Can Accelerated Adoption of Artificial Intelligence Solutions Catalyze Future Growth? – Major Drivers
- C3.ai Inc.: The Story Of Increasing Demand for Its Cutting-Edge Technology in the Defense Sector! – Major Drivers
Softbank (9984 JP): This Time, It’s Different
- Elliott Management has emerged as a 2%+ shareholder in SoftBank group and is driving for share buybacks of upto USD15bn; we see this as a game changer for minority shareholders
- Recent moves to enhance corporate governance in Japan have taken root, yet we see Softbank group as a laggard on corporate governance which been targeted by an experienced activist
- Softbank shares trade at a 54% discount to the estimated NAV; an activist like Elliott on board could meaningfully drive shareholder value creation and a narrowing of the NAV discount
Lasertec. Colossal Fraud Or Multi-Award Winning Mask Inspection Supplier?
- Activist short seller Scorpion alleges Lasertec is a “colossal fraud” and “ticking time bomb”
- Most of their allegations relate to problems with Lasertec’s EUV mask inspection tools
- Lasertec achieved Intel’s distinguished supplier ward for the past six years and last December landed an award from TSMC for “Distinguished EUV Mask Inspection and Metrology Collaboration”. What gives?
What Did FSS Point Out to Shift Up? & What Impact Would It Have on Bookbuilding Sentiment?
- FSS wants Nikke’s MAU data to address revenue concerns. They also seek April and May sales data for Stellar Blade to address valuation concerns despite its recent launch.
- Shift Up updated the prospectus with Nikke’s increasing MAU data but didn’t include Stellar Blade sales data. FSS may request further revisions, possibly delaying the IPO again.
- Nikke’s MAU has risen but plateaued versus the previous quarter, and uncertainty surrounds Stellar Blade’s April-May sales, potentially impacting IPO pricing.
TOPIX Inclusions: Who Is Ready (June 2024)
- Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
- There have been no TOPIX Inclusions in 2024 so far although dozens of companies have been able to meet the key Section Transfer requirements on paper for several months.
- However, there are some pre-event candidates we believe are worth monitoring as they have previously confirmed their desire to move to the Prime Market.
TSMC (2330.TT; TSM.US): ASML’s High-NA EUV Machine Will Not Be Required Until 2027 at TSMC.
- Taiwan Semiconductor (TSMC) – ADR (TSM US) is planning to launch its 2nm in 2025.
- TSMC is expected to acquire one High-NA EUV machine this year for R&D purposes, but it will not be used for commercial production.
- TSMC is expected to increase the cost of its Chip-on-Wafer-on-Substrate (CoWoS) package by around 15% in 2H24.
Tech Supply Chain Tracker (07-Jun-2024): Air Liquide to invest $250M in US location for Micron gas.
- Air Liquide investing $250M in new US facility for Micron gas supply, reflecting commitment to growth and sustainability.
- Maruti Suzuki focusing on renewable energy expansion in India, showing dedication to environmental initiatives and reducing carbon footprint.
- EVs driving demand for high-tech satellite dishes, while Nvidia aims to hire 50% foreign workers for new R&D center in Taiwan. EU-China tariff risks highlighted.
Altium (ALU AU): Scheme Vote on 12 July
- The Altium Ltd (ALU AU) IE considers Renesas Electronics (6723 JP)’ A$68.50 scheme offer fair and reasonable as it is above the midpoint of the A$62.37 to A$70.27 valuation range.
- The offer is conditional on remaining regulatory approvals (FIRB, CFIUS) and shareholder approval.
- The offer price is attractive and 31% above the all-time high. At the last close and for the 1 August payment, the gross/annualised spread was 1.7%/11.6%.
Salesforce.com Inc.: Integration & Implementation Of platforms
- Salesforce Inc.’s Q1 2025 results saw revenue growth of 11% year-over-year to $9.13 billion, with the CRM provider leading market share worldwide for the 11th consecutive year, according to the latest IDC software tracker.
- The company is managing over 250 petabytes of data for its customers as it continues to drive transformation in artificial intelligence (AI).
- The company maintained its FY ’25 revenue guidance of $37.7 billion to $38 billion, representing a growth of 8-9% year-over-year.
Dell Technologies: A Disappointing Performance But Can Accelerated Adoption of Artificial Intelligence Solutions Catalyze Future Growth? – Major Drivers
- Dell Technologies Inc’s stock price crashed after a disappointing set of earnings.
- The company reported its first quarter results for the fiscal year 2025, highlighting a 6% increase in revenue to $22.2 billion.
- The revenue growth was attributed to remarkable growth in servers and a return to growth in the commercial PC business.
C3.ai Inc.: The Story Of Increasing Demand for Its Cutting-Edge Technology in the Defense Sector! – Major Drivers
- C3.ai Inc.’s 2024 fourth quarter financial results and their fiscal year report have illustrated continuous growth and increased profitability.
- With a record revenue of $310.6 million for the full year, indicating a 16% increase from last year, and Q4 revenue at $86.6 million, the company has significantly exceeded analyst expectations and its own guidance estimates.
- Its subscription revenue reached an impressive $278.1 million, a 21% rise from last year’s figures.
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