Daily Brief TMT/Internet: WeRide Corp, Amazon.com Inc, Melexis NV, Meta Platforms (Facebook), Freelancer Ltd, Ryoden Trading, Softcreate Holdings, Marubun Corp, Hakuto Co Ltd and more

• WeRide Corp (WER CH) is looking to raise around US$300m in its upcoming US IPO.
• WeRide provides autonomous driving products and services from L2 to L4 of driving automation.
• In this note, we will talk about the positive aspects of the deal.

• Amazon anticipates a 13% YoY rise in Q2 2024 revenue to $148.67 billion and a 58% YoY jump in EPS to $1.03, highlighting robust earnings.
• AWS is expected to see a $1 billion increase in quarterly revenue, reflecting an 18% year-over-year growth, driven by custom AI chips and model training services.
• Analysts have reaffirmed buy ratings for Amazon, with an average target price of $228, reflecting strong confidence in the company’s growth prospects.

• WeRide Corp (WER CH) is looking to raise around US$300m in its upcoming US IPO.
• WeRide provides autonomous driving products and services from L2 to L4 of driving automation.
• In this note, we will talk about the not so positive aspects of the deal.

• E Ink and Himax introduce new color e-paper controller to enhance display technology, offering improved visual experience.
• Taiwan’s Economic Minister outlines plans to boost global competitiveness, focusing on strategic initiatives to strengthen economy.
• Shanghai commits $13.7 billion investment in IC, AI, and biopharma industries, driving growth in technology sectors.

• Meta’s Q2 revenue of $39.1B surpassed expectations, up 22% YoY. EPS jumped 73% YoY to $5.16, beating estimates.
• Ad revenue within the Family of Apps rose 22% YoY, driven by online commerce and strong performance in Europe and the Rest of the World.
• Q3 revenue forecasted between $38.5B and $41B. Meta’s AI investments are set to enhance ad delivery and support long-term growth, despite increasing CapEx.

Freelancer reported a mixed performance in H124, with Escrow.com volumes down significantly after a very strong Q123, while the Freelancer platform benefited from growth in the Loadshift business. There are several promising opportunities in the enterprise business, including providing AI model training services and integration into new verticals within Escrow.com, that could reinvigorate growth from H224. Management is focused on making incremental improvements to the core marketplace platform with the aim of encouraging clients to become regular users of the platform and expanding the size of projects.

• Revenue decreased to JPY55.2bn (-13.1% YoY) with a progress rate of 25.2%; operating profit fell to JPY1.0bn (-42.6% YoY).
• Recurring profit dropped to JPY1.2bn (-28.4% YoY) with a progress rate of 17.3%; net income attributable to owners was JPY862mn (-20.8% YoY).
• Strong sales in North America and Europe, robust memory and sensor IC sales, but weak power device sales due to excess inventory.

• In Q1 FY03/25, revenue increased 6.7% YoY to JPY7.1bn, while operating profit decreased 15.1% YoY to JPY1.1bn.
• The EC Solutions business saw a 6.8% YoY rise in revenue to JPY4.0bn and a 5.8% YoY decline in operating profit.
• The IT Solutions business reported a 6.5% YoY revenue increase to JPY3.1bn and an 11.5% YoY decrease in operating profit.

• Net sales: JPY50.8bn (-15.9% YoY); Operating income: JPY2.6bn (-15.4% YoY); Ordinary income: JPY572mn; Profit: JPY429mn.
• Electronic Devices business: Net sales JPY40.6bn (-17.7% YoY); Operating income JPY2.7bn (-11.2% YoY); decreased semiconductor demand.
• Foreign exchange losses: JPY1.1bn due to yen depreciation; minor impact on consolidated earnings for FY03/25.

• Q1 FY03/25 results: Sales JPY42.4bn (-5.4% YoY), Operating profit JPY1.7bn (-13.1% YoY), Recurring profit JPY2.3bn (+30.6% YoY), Net income JPY1.5bn.
• Segment sales: Electronic Devices and Components JPY34.8bn (-3.1% YoY), Electronic and Electric Equipment JPY4.7bn (-18.0% YoY), Industrial Chemicals JPY2.8bn (-8.9% YoY).
• Segment profit: Electronic Devices and Components JPY1.6bn (+7.3% YoY), Electronic and Electric Equipment JPY127mn (-68.8% YoY), Industrial Chemicals JPY45mn (-75.5% YoY).