Daily Brief TMT/Internet: Taiwan Semiconductor (TSMC), Asmedia Technology, Taiwan Semiconductor (TSMC) – ADR, Travelsky Technology Ltd H, IndiaMart, iShares MSCI ACWI ETF, Softbank Group and more

• Q423 revenues of $19.62 billion, at the high end of guidance, up 13.8% QoQ and down 1.5% YoY. Net profit margin of 38.2% results in net income of ~$7.5 billion.
• FY23 revenues of $69.3 billion, down 8.7% YoY, only the second such down year since 2005
• Bullish FY24 forecast for >20% YoY growth sends share price soaring in overnight trading. 

• WT Microelectronics (3036 TT) is looking to raise US$256m from selling half of its stake in Asmedia Technology (5269 TT).
• The deal wouldn’t be a very large one to process at just 3.4 days of ASMedia’s ADV.
• Although, the selldown doesn’t appear to be particularly well flagged. The remaining WT Microelectronics’ stake will also create an overhang on ASMedia’s share price as well.

• TSMC: Stock Prices Soared After Reporting Earnings, But ADR Rose Higher… Now +12.4% Premium, Shortable Level
• ASE: ADR Spread Has Rebounded Substantially, Now +8.6%. Not Yet at Short Levels.
• ChipMOS: ADR Spread Drops to -2.2%, Good Level to Go Long.

• Travelsky Technology Ltd H (696 HK) (TravelSky) issued its 2023 operating statistics and a profit warning that is far below market expectations, the share price has plunged by 36% 
• Our analysis suggests that staff cost, commission, and systems costs have soared. This will be contained when traffic accelerates and absorbs these fixed cost items 
• Our target price of HKD9.92 (+21% UPSIDE) is based on 2024 PE 14.8x (1SD below mean). Keep an eye, worthwhile trade, due for a bounce    

Key points (machine generated)

• IndiaMart is India’s largest online B2B marketplace with a market cap of $2 billion.
• The company has a 60% market share of B2B e-commerce in India, indicating a large potential for growth.
• IndiaMart benefits from a negative working capital business model, upfront supplier subscription payments, and a net cash balance sheet. It also has the option to invest in new business lines to expand its monetization opportunities. Despite limited advertising spend, the platform attracts over 1 billion in traffic.

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• We see global equities (MSCI ACWI) going through a pause/pullback amid short-term breakouts in the U.S. dollar (DXY) and global sovereign 10-year yields.
• A rising DXY and climbing yields is a near-term headwind, and we could continue to see more choppy price action in the weeks ahead.
• With that said, as long as the DXY remains below $106, the 10-year Treasury yield remains below 4.35%, and ACWI-US is above $98, we would view pullbacks as buying opportunities.

• SoftBank group’s headline NAV discount is over 50%, factoring in the T-Mobile shares windfall at December-end
• SoftBank Corp is looking to IPO digital payments company PayPay, which should also be a positive driver for SoftBank Group shares going forward, but only a marginal one
• Arm shares have been defying gravity, but we see downside risk going forward, as well as questions over SVF1 and SVF2 private company valuations; and the threat of JPY appreciation