Daily Brief TMT/Internet: Taiwan Semiconductor (TSMC), Softbank Group, Asustek Computer, ASE Technology Holding , Ubiquiti Inc., Immersion Corporation, WM Technology , MoneyHero , ZoomInfo Technologies , Automatic Data Processing and more

• April revenue ~NT$236.02 billion, +20.9% MoM & + 59.6% YoY
• It was the company’s second highest monthly revenue ever, made all the more remarkable by the fact that it occurred during its seasonally low first half year
• Our April YoY Taiwan monthly revenue comps are flashing green across the board with just one exception, Globalwafers

• Arm’s valuation has driven the group NAV to a new high at fiscal year-end in March; with Arm accounting for 45% of group equity value, NAV downside risk is high
• JPY depreciation has been NAV supportive, but this could reverse; SVF2 remains very exposed to financing costs, with 87% of its equity value in private companies
• Softbank shares trade at a 57% discount to the estimated NAV; yet the downside risks to Arm’s valuation, along with SVF2 valuation headwinds, should keep the discount wide

• Asus’s 1Q24 earnings beat consensus by 46% thanks to major increase in operating margin driven by costs optimization. Adjusted Asus brand Op profit rose 227% YoY and 98% QoQ.
• Asus will host a major AI PC launch event May 21st, with additional AI PCs launched at Computex in Taiwan June 4th. Will feature Qualcomm Inc (QCOM US) Snapdragon processors.
• Asus confident in an PC upgrade cycle and has guided for sales to rise and margins to expand in the coming quarters. We maintain our Structural Long rating for Asus.

• ASE plans to boost sales in the second half of 2024 with cutting-edge technology and innovative solutions. Introspect CEO discusses how their GDDR7 memory test system outperforms competitors, helping customers stay ahead of the curve.
• Taiwan’s space dreams face hurdles from regulations and geopolitics, hindering progress. N Chandrasekaran becomes chair of Tata Electronics, signaling entry into semiconductor industry. Indian GaN startup targets global expansion in telecom and EV markets for growth.
• Triton ignites Taiwan’s push for satellite self-sufficiency; Apple partnership speculation with a leading EV startup generates buzz. Lam Research seeks chipmaking tool partners in India to drive innovation and collaboration. #Apple #EVstartup #newsroundup

• UI reported fiscal third quarter (March) results in line with our revenue forecasts suggesting the business could be on the rebound after two years in a challenging environment
• The performance in the June quarter comes even though peers have been reporting a tough selling environment with extended sales process as customers took time to make their decision
• The increase in product availability did backfire in the quarter with Ubiquiti taking a charge for obsolete inventory. Nevertheless, Ubiquiti’s results show a business that is improving

• Immersion Corp. is a high-margin licensing business with no debt and significant cash reserves
• Recent settlement with Meta in patent lawsuit could exceed company’s current enterprise value
• Previous settlements with Apple resulted in significant increase in Immersion’s share price, potential upside not fully reflected in current share price due to limited access to court documents, presenting possible investment opportunity

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.

• Choking off investment is leading to undervaluation of companies like MAPS in the cannabis sector
• MAPS has a dominant position in the market with a strong brand and large user base
• MAPS presents a compelling investment opportunity with potential upside due to its low valuation and ability to capitalize on evolving industry trends and regulations

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.

MoneyHero is a leading South-East Asian personal finance aggregator and comparison platform, covering the full suite of personal finance products. Its goal is to educate and empower consumers on personal finance through engaging content and rewards on financial products. The company partners with leading local and global financial institutions to ensure it has the most attractive products and offers for its user base. Management has ambitious plans to grow market share and attractive product verticals, such as insurance. Having raised c $87m in net proceeds from a deSPAC transaction in October 2023, the company paid down all debt and had a net cash position of $68.6m at end FY23, meaning it is well capitalised to fund the acceleration in growth.

• Zoominfo’s stock rose by 24% after hours following positive earnings, attributed to its unique database and high ROI for salespeople
• Challenges such as decelerating sales, shrinkage in the software sector, and competition from copycat companies have impacted Zoominfo’s growth
• The company is looking to bounce back and derisk its story for investors with a strong data offering

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.

• The latest earnings for Automatic Data Processing (ADP) saw a robust performance of the company’s third quarter fiscal performance for the year 2024.
• Two key figures stood out in the discussion, a 7% revenue growth and a 14% adjusted diluted EPS growth, indicating a solid financial performance despite a competitive business environment.
• Positively, the company achieved strong Employer Services (ES) new business bookings growth, achieving record bookings for the Q3 period, which keeps the company on track for its full-year outlook.