Daily Brief TMT/Internet: Taiwan Semiconductor (TSMC) – ADR, Miroku Jyoho Service, Unisplendour Corporation Limited, Avant Corp, Xero Ltd, Pci Holdings Inc/Jp, Commvault Systems, Comscore Inc, JFrog, Plexus Corp and more

• TSMC’s 3nm Shortage: Capacity Filled Until 2026 Amid Surging Demand; Strategic Price Hikes Coming Soon
• Top Gainers/Losers: Taiwan Tech Rallies Alongside TSMC, Apple, Nvidia, ARM Strength
• Samsung Unveils Pathway to Catch Up With TSMC in the AI Foundry Race

• Miroku Jyoho Service (TSE:9928) , which offers on-premises, hybrid (IaaS) and cloud accounting software to Japanese enterprises of various sizes.
• Our purchase is centred around the business achieving further transition to the cloud, allowing for substantial margin improvement through the accumulation of high gross margin SaaS revenue.
• This transition has impacted firm profitability in the short term due to the shift in revenue recognition as quoted below by the company

• H3C and Foxconn partner in Malaysia for data center investment; Tsinghua Unigroup continues acquisitions in the tech industry.
• Chinese automakers urged to invest in cleaner technologies, form strategic partnerships, and comply with EU regulations under new EV tariffs.
• Microsoft & Qualcomm exceed pre-orders with AI-powered Copilot+ PC; Hyundai plans to list Indian arm; SEMICON India to showcase advancements in semiconductor industry.

• Avant was founded in 1997 by the current CEO Tetsuji Morikawa and is a Japanese holding company of financial and non-financial software which have the collective goal of assisting its clientele to increase corporate value.
• This includes ‘Diva’ as Japan’s foremost (43% market share) consolidated accounting software and board meetings platform in addition to ‘Avant’, a management system for corporate value enhancement through consolidation of information (Avant Cruise) , charting (Avant Chart) , and corporate value enhancement (Avant Compass).
• Lastly, there is ‘Zeal’ which includes several non-financial platforms that help organise and integrate (with Avant Cruise) from external sources. And interestingly, Avant also owns and operates Internet Disclosure Co, which runs Kaijinet, a site I have frequently visited over the years.

• This is the first blog post on the Hurdle Rate website, a series of blog posts which I intend to cover specific topics rather than unit trust investments.
• From time to time I may consider company deep dives, but predominately I want to make these posts more specific in nature around the global landscape in professional and financial services.
• Today’s post is going to talk about the recent bombshell that is Xero’s price hikes, a controversial topic here in Australia for the accounting industry, and a perfect start to the blogroll given my background and focus.

• PCI Holdings, Inc. (hereafter, the Company) is an IT provider of IT-related services and hardware, mainly focusing on embedded system technology such as embedded software, embedded computers, and the like.
• Though it is a relatively young company, born in 2005, it has grown up to be large enough to have net sales of ¥28,500 mn for FY2023/9 with approximately 1,600 employees along with organic growth and acquisition of many companies.
• Going forward, it will change the corporate structure and make it more profitable by investing its cashflow from its core businesses, the Engineering Business and the Product/Device Business, into the ICT Solutions Business, which has considerable potential growth fields such as solution development using AI, IoT platform and the like.

• Commvault recently wrapped up an impressive Fiscal Year 2024, demonstrating robust financial health and strategic progress.
• Their fourth-quarter earnings highlighted a 10% increase in total revenue, reaching $223 million.
• This growth was significantly propelled by a 27% rise in subscription revenue, which now constitutes over half of the total revenue stream.

• Comscore underwent recapitalization in 2021, issuing $204M in convertible preferred stock
• Decline in equity capitalization led to removal from major market indexes, but recent improvements in fundamentals have created significant equity value
• Preferred holders may convert stock into common stock at a discount, and have the option to request a one-time special dividend valued at $45M, declining annually if specific borrowing conditions are met.

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.

• JFrog’s First Quarter 2024 financial report showcases a strong financial position with notable overall growth and a positive outlook, marked by significant developments and strategic initiatives across the company.
• Total revenue reached $100.3 million, reflecting a 26% year-over-year increase, driven by robust cloud revenue and growing enterprise subscriptions.
• Cloud revenue notably increased to $36.9 million, marking a 47% growth from the previous year.

• Plexus Corp recently reported fiscal second quarter 2024 results which showcased the company’s capacity to maintain a robust growth trajectory and strong operational performance amidst a mixed business environment.
• Plexus announced fiscal second quarter revenue of $967 million, which sat at the top end of the company’s guidance, with a non-GAAP EPS of $0.94.
• The non-GAAP operating margin was reported at 4.2%.