TMT: Lasertec Corp, Brother Industries, Info Edge India and more

• Lasertec has been the darling of the SPE sector over the last few years, rising a 122x from mid-2016 to the peak at the start of this year. 
• With a commanding position for EUV inspection systems and its new ACTIS systems on deck the excitement is understandable. 
• The valuations though are not, and the share price has now clearly started to break down.

• The focus of this article is on the company’s announcement that it will buy back up to 10 billion yen (5.5 million shares, or 2.11% of the total outstanding shares).
• Without explanation of how Brother will actually allocate the expected cash flow between investment and shareholder-return, it is impossible to fully answer why the amount was set at JPY10 billion.
• Capital Allocation is not well explained, and not many investors are paying attention to our niche business, but we should get more attention because the company is a cash cow.

Info Edge Ltd (INFOE) delivered better-than-expected revenue in 3QFY22, with standalone revenue growth of 48% YoY (estimate of +42%). On the other hand, the EBITDA margin missed estimates due to higher ad spending in the 99acres business. 3Q billing also came in ahead of our estimate, led by a large beat in Naukri (80% YoY). The management has indicated continued strength in the Naukri business over the near term, along with the large impact of a price increase in FY22E billing.