TMT: Taiwan Semiconductor Sp Adr, Razer Inc, S&P BSE SENSEX Index, Softbank Group, Sea Ltd, GoTo, Kuaishou Technology, AAC Technologies Holdings, Micron Technology and more

• TSMC is still focusing on their delivery targets for 3nm and 2nm for the next goals.
• Nvidia CEO Mr. Jensen Huang said he wants to diversify his company’s suppliers as much as possible, and he will consider working with Intel. 
• We have to leave a big question mark that Intel declares to deliver 3~4 technologies within 2024.

• Razer Inc (1337 HK)‘s Scheme Document is now out. The Court Meeting will be held on the 26 April. The IFA declares the Offer to be fair and reasonable. 
• More importantly, the Document flags the abolishment of the headcount test may become law ahead of the shareholder meeting. That is a game-changer.
• Trading at a wide spread of 14.2%. This will narrow on this latest development.

• Razer Inc (1337 HK)‘s scheme document is out with the scheme meeting scheduled for 26 April. The IFA considers the offer to be fair and reasonable. 
• The headcount test, the key risk, applies unless the amended Cayman Islands Act becomes law before the court meeting date on 26 April. The legislative timetable has not been set. 
• Current deal probability implies a 65% chance of success, which fairly reflects the deal risk in our view. At last close, the gross spread is 14.2%. 

• The S&P BSE family of indices represents the performance of stocks listed on the Bombay Stock Exchange (BSE) across various sizes, themes, industries, and strategies.
• This series will mainly focus on the following indices of the S&P BSE family: S&P BSE 500, S&P BSE 200, S&P BSE 100, and S&P BSE SENSEX.
• In this insight, we take a brief look at the constituent selection methodology and the historical price performance of Index Rebalance Events for the above-mentioned indices.

• Shares are now up 1% in the quarter despite investment losses as 87% of assets are US$-linked
• A recovery for Alibaba, reports of ARM monetization and the $2bn sale of its stake in Cruise has eased leverage concerns with LTV back to 22% and CDS prices falling
• This report includes detail on Softbank dollar exposure, calculations for LTV on a quarterly and daily basis and updates to our usual NAV discount/VF performance tables

• Sea Ltd’s (SE US) decision to exit India came as a surprise but looks like a prudent move given the heightened risk for Shopee there post the FreeFire ban.
• The move will allow Sea Ltd (SE US) to focus its attention and resources on a more profitable markets such as Brazil, which is already seen as a core market.
• Sea Ltd’s growth model is intact with losses in its core e-commerce markets declining fast on a per order basis. Valuations are less challenging on 3.4x FY2023E EV/Sales.

• The long-awaited GoTo IPO is upon us with a listing scheduled for 4th April after the deal was priced sensibly in the middle of the range at IDR338 per share. 
• Since this was only offered to local investors and the IPO only represents 4.35% of shares in issue pre-Green Shoe, we see the potential for strong support from local institutions.
• Valuations are challenging but GoTo represents the best proxy for the Indonesian digital economy given its broad and unique exposure to key verticals of on-demand, digital finance, and e-commerce. 

• Both monthly active users and time on site grew strongly in 4Q21.
• Live streaming revenue recovered quarter over quarter in 3Q21 and 4Q21.
• Operating loss decreased in 4Q21, compared to the first three quarters in 2021.

We view AAC Technologies as “Low Risk” on the LARA scale, mainly due to the company’s market position in the acoustics segment, healthy financial profile and diversified product range. AAC is a supplier to reputable brands such as Apple, Samsung, Lenovo, LG Electronics, Huawei Technologies and Xiaomi Corp. The acoustics business is the company’s key profit centre. That said, AAC will need to further diversify its products to keep up with clients’ needs, as well as expand the customer base to boost revenue. The company’s operations and expansion plans could be disrupted by the resurgence of COVID-19 cases.

Our Credit Bias on AAC is “Stable”, given the company’s leading position in the acoustics segment, solid business fundamentals and healthy financial profile. That said, AAC may face supply disruptions due to the resurgence of COVID-19 cases, especially since Greater China is one of the company’s largest markets.

• Micron’s 2QF22 results were above the high end of guidance
• The company’s outlook for the current quarter is very strong
• Market data supports the company’s bullish outlook, and Micron’s performance speaks for itself