In today’s briefing:
- TSMC’s July Revenue Hits Record NT$256.95 Billion, Boosted by AI Servers and IPhone 16 Demand
- Tencent (700 HK): 2Q24 Preview, Both Growth and Margin to Improve
- HK Connect SOUTHBOUND Flows (To 9 Aug 2024); Tencent the Big Buy Again
- KOSDAQ150 Adhoc Index Rebalance: Webzen to Replace Connectwave
- Tender Offer of BusinessOn Communications by Skylake Equity Partners
- China Consumption Weekly (12 Aug 2024): Geely, Li Auto, JD.com, Alibaba, Tencent, DDL
- Tech Supply Chain Tracker (13-Aug-2024): SDC signs contract with Microsoft.
- Monolithic Power Systems: Expansion into AI & High-Power Solutions Catalyzing Growth! – Major Drivers
- Roblox Corporation: A Tale Of Enhanced Content Discovery and Platform Engagement! – Major Drivers
- IoT firm UnaBiz hits first close of US$25M pre-series C round | e27
TSMC’s July Revenue Hits Record NT$256.95 Billion, Boosted by AI Servers and IPhone 16 Demand
- TSMC’s July 2024 revenue reached NT$256.95 billion, up 23.6% MoM and 44.7% YoY. Year-to-date revenue grew by 30.5% to NT$1.52 trillion, driven by strong orders from Apple, Intel, and Nvidia.
- TSMC forecasts Q3 revenue of $22.4-23.2 billion, anticipating over 25% full-year growth. July revenue already at 35% of Q3 estimates. Analysts advise against assuming these results for the entire quarter.
- TSMC is capitalizing on AI and mobile demand, with analysts maintaining an “Outperform” rating with average upside of 14%, noting potential growth from 5G, HPC, and automotive sectors.
Tencent (700 HK): 2Q24 Preview, Both Growth and Margin to Improve
- We believe total revenue will grow by 9% YoY and game revenue began to rise in 2Q24.
- We believe the operating margin will continue to improve YoY in 2Q24 after the seven-year high in 1Q24.
- We set the upside at 35% and the price target at HK$496 for the end of 2025.
HK Connect SOUTHBOUND Flows (To 9 Aug 2024); Tencent the Big Buy Again
- SOUTHBOUND was again a net buyer, for HK$15.2bn this week (now 27wks in a row of net buying), on smallish two-way volumes. Better than the previous month but still low.
- Bank net buying, which had spiked the previous week, didn’t follow through.
- There were three ETFs in the top 15 SOUTHBOUND net buys this past week, reversing last week, which reversed the week before’s flows.
KOSDAQ150 Adhoc Index Rebalance: Webzen to Replace Connectwave
- Webzen Inc (069080 KS) will replace Connectwave (119860 KS) in the KOSDAQ 150 Index (KOSDQ150 INDEX) effective 16 August.
- There is over 2 days of ADV to trade on both stocks though the flows are not very large.
- The Connectwave (119860 KS) delisting will also have an impact on the changes to the KRX New Deal Internet Index in September.
Tender Offer of BusinessOn Communications by Skylake Equity Partners
- On 12 August, Skylake Equity Partners announced a tender offer of 6.58 million shares (28.9% stake) of BusinessOn Communication. The tender offer price is 15,849 won.
- BusinessOn is one of the leading digital tax invoice software providers in Korea. It also provides digital contracts, market intelligence, banner advertising, and supply chain management services.
- Skylake plans to purchase all of the shares subscribed in this deal, regardless of the subscription rate. If the public offering target quantity is successful, Skylake plans to delist BusinessOn.
China Consumption Weekly (12 Aug 2024): Geely, Li Auto, JD.com, Alibaba, Tencent, DDL
- The retail deliveries of NEV (new energy vehicle) increased by 37% YoY in July.
- One of Alibaba’s supermarket chains, Freshippo, will sell its OEM goods, on Lazada.
- Tencent will formally start the game, Arena Breakout: Infinite, in August.
Tech Supply Chain Tracker (13-Aug-2024): SDC signs contract with Microsoft.
- SDC partners with Microsoft while VCs in India prioritize deep tech startups for innovation and growth.
- Polish startup SEEDiA leads in smart urban infrastructure as AI hype in smart manufacturing is questioned for realistic outcomes.
- Non-a-Si panels expected to dominate auto displays 2024-2029 as Indian opto-semiconductor maker acquires US-based IC equipment company.
Monolithic Power Systems: Expansion into AI & High-Power Solutions Catalyzing Growth! – Major Drivers
- Monolithic Power Systems Inc. has reported a robust second quarter in 2024, reflecting a series of positive outcomes driven by strategic initiatives and diverse market engagement.
- The company announced record revenues of $507.4 million, surpassing the high end of their guidance.
- This performance was largely attributed to the increased demand for AI-powered solutions, an improvement in order trends across various end markets, and revenue generation from previous design wins.
Roblox Corporation: A Tale Of Enhanced Content Discovery and Platform Engagement! – Major Drivers
- Roblox Corporation’s second quarter 2024 earnings discussion presented an optimistic outlook underscored by impressive financial and usage metrics.
- The quarter witnessed a 31% year-over-year increase in revenue, reaching $893.5 million, surpassing the guidance.
- Bookings also grew by 22% to $955 million, while daily active users (DAUs) stood at 79.5 million, marking a 21% increase from the previous year.
IoT firm UnaBiz hits first close of US$25M pre-series C round | e27
- Singapore-based UnaBiz, a provider of customised IoT solutions, has announced the first close of its US$25 million pre-series C funding round with Japan’s KDDI Open Innovation Fund 3 and KYOCERA Communication Systems.
- The fresh funds will be used to partner with new companies in the security industry, deepen logistics and supply chain market penetration, and expand utility with hybridisation.
- This capital injection follows UnaBiz’s acquisition and integration of French IoT firm Sigfox 0G technology. In two years, UnaBiz added 4 million new devices to the global 0G Network.
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