TMT/Internet

• SKT foreign room rising ahead of PIPC sanction decision today; fine confirmation could trigger ESG fund exits.
• Large ESG money still in SKT; post-sanction exits could push foreign room past 25% sooner than expected — a key factor for trading setup.
• Nov review momentum could hit early; post-fine, a foreign room surge toward 25% signals our entry, with the pullback setting up the SKT Nov inclusion trade.

• On Friday 22 August, the Hang Seng Index team announced the changes to the Hang Seng Internet and IT Index for the September 2025 rebalance.
• There are 3 ADDs and 3 DELs. We predicted 2/3 ADDs and 3/3 DELs correctly. But Funding and FAF Re-weight/Capping flows are bigger than the ADD/DEL flows.
• Then on Monday 25 August, the index provider announced a capping methodology change. Not much changes, but flows increase from US$850mm to US$1bn+. Tables and spreadsheets amended.

• Montage Technology (688008 CH) (MT), a provider of memory interface chips and interconnect chips, aims to raise around US$1bn in its H-share listing.
• MT’s product portfolio, mainly comprises memory interface chips and interconnect chips, addresses interconnect bottlenecks while enhancing data rate/bandwidth, reliability, and power efficiency, as per the company.
• In this note, we look at its past performance and other deal dynamics that might impact the listing.

• PC Partner reported 1H25 results, which showed strong revenue growth and flat net margins.
• The company is confident it can delist from HK before the end of the year, as it only needs 50% of shareholders to approve the transaction. SGX only listing remaining.
• The company is now part of the Nvidia Partnership Network, which could accelerate growth in FY26.

• China announced game approval for the August batch. The number of games approved remained at a higher level than 2023.
• The number of game approval in August marked the record high level since the resumption post tightening.
• Of the companies that we are monitoring, Netease and Bilibili got approval for one game each.

• Palantir ownership among global funds hit a record 11.3% in July 2025, nearly doubling in six months, led by growth strategies.
• Despite a 500% rally and rising index weights, most fund positions remain modest; only three exceed 2%.
• Now the fourth most held AI/software peer, Palantir risks becoming a Tesla-style underweight challenge for active managers.

• Amazon has officially stepped into the online used-car market through a high-profile partnership with Hertz, potentially disrupting an industry already in flux.
• After quietly testing car listings through its Amazon Autos vertical for over a year, Amazon is now allowing customers in select U.S. states to browse Hertz’s used vehicle inventory and complete much of the transaction through its platform — a move designed to provide a more convenient and digital car-buying experience.
• Delivery or pick-up logistics are handled by Hertz, while Amazon facilitates discovery, payments, and logistics support.

• Take-Two Interactive Software reported strong financial results for the first quarter of fiscal year 2026, ending June 30, 2025.
• The company reported net bookings of $1.42 billion, significantly surpassing its guidance range of $1.25 to $1.3 billion, indicating robust demand across its portfolio.
• Take-Two’s core franchises, particularly NBA 2K and the Grand Theft Auto series, continue to perform exceptionally, which has supported an upward revision of the company’s net bookings outlook for fiscal year 2026 to a range of $6.05 to $6.15 billion.

• As geopolitical tensions intensify, Nvidia is walking a tightrope between U.S. export controls and China’s increasingly assertive push for self-reliance in critical technologies.
• The chipmaker’s position as the dominant provider of AI semiconductors has forced it into delicate strategic maneuvers, especially in China, where demand remains strong but political scrutiny is mounting.
• To preserve a foothold in this crucial market, Nvidia has introduced weakened chip designs to comply with U.S. restrictions, explored revenue-sharing deals with local partners, and restructured its supply chain to insulate operations from further shocks.

• Our base case valuation of Nota suggests target price of 11,948 won per share, which represents 31% higher than the high end of the IPO price range (9,100 won).
• Nota’s technology enables efficient operation of high-performance AI models. It has been able to develop one of the first commercially available generative AI-based intelligent video surveillance solution in Korea.
• We estimate Nota to generate revenue of 13.8 billion won (up 65% YoY) in 2025 and 21.7 billion won (up 57% YoY) in 2026. 

• Last evening, Hang Seng announced a methodology change for the Hang Seng Internet & Information Technology Index (HSIII Index) with implementation in two phases.
• The capping methodology will be updated at the September rebalance and the turnover and sector requirements will be updated at the December rebalance.
• The updated capping scheme increases turnover and flow in September, while there could be one constituent change for the index at the December rebalance.

• Dems likely to push 3rd package in Q4; near-term flows chasing treasury stock cancellation theme, with locals screening >₩1tn mkt cap, >10% treasury shares of float.
• Little pushback on mandatory treasury cancellations; debate focused on timeline — grace period vs. immediate rollout — highlighting how much leeway government may grant differing governance structures.
• Too early for governance plays; near-term momentum flows likely in names with highest treasury stock relative to float, where cancellation is expected to hit flows hardest.

• Samsung has scaled back its Texas fab plans from 44 billion to 37 billion, but the summit may bring a top-up with Intel and Amkor partnerships.
• Intel is shifting glass substrate patents to an Arm-like royalty model backed by SoftBank’s 2 billion stake and a 10 percent US government holding.
• Samsung’s partnership would show alignment with US semiconductor policy at a time when subsidies and political backing matter as much as technology.

• Semi-Cap names outperforming an otherwise dreary tape after TSMC announces no Chinese equipment in its 2nm lines for fear of US reprisals 
• Yields rose on concerns it’s going to be a ‘one and done’ situation after September cuts 
• Trend Micro looking interesting after rebounding off the lows yesterday – with OTC prints possibly pointing to a seller getting cleaned up after 2-months of woeful price action 

• Newborn is a rare HK listed name entirely focused on overseas, monetising social networking apps across MENA and Southeast Asia, giving investors concentrated exposure to the China-to-overseas growth theme.
• Stock trades at low-teens PE while revenues and profits grow above twenty-five percent CAGR, leaving a big valuation disconnect and plenty of room for re-rating compared to global peers.
• The product matrix strategy means older apps provide cash, newer apps drive rapid scale, while a pipeline of apps ensures continuous replacement growth and resilience across user segments and geographies.

• Netskope Inc., a VC-backed cybersecurity leader and provider of enterprise network security platform that helps customers apply zero trust principles to protect sensitive data, filed to go public.
• The Santa Clara-based Netskope has raised a significant amount of equity and debt. According to Crunchbase, the company has raised ~$1B in equity across many rounds of funding.
• With 30%+ ARR growth, improving profitability and leadership position, I expect a strong interest around high-profile Netskope IPO.

• We are initiating coverage of BTCS, Inc. (NASDAQ: BTCS), a pioneer in the blockchain technology sector since 2014. BTCS stands for Blockchain Technology Consensus Solutions, which is what it does for Ethereum, not Bitcoin (BTC).
• BTCS is a US-based blockchain technology company focused on blockchain infrastructure, with its primary operations currently focused on the Ethereum network.
• Its core focus is on driving scalable growth through a diverse range of blockchain-focused technological solutions, emphasizing Ethereum infrastructure, including block building and validator node operations.

• DALN announced a merger with Hearst Communications at $15/share, a 275% premium to the pre-announcement price.
• Alden Global Capital, owning 10% of DALN, made a competing bid of $18.50/share, which was ignored.
• DALN’s financial struggles include declining print circulation and advertising revenues, despite cost-saving measures and asset sales.

• On 14-Aug, Minebea Mitsumi (6479 JP) upped their TOB on Shibaura Electronics (6957 JP) from ¥5,500 to ¥6,200, but set the close before rival bidder YAGEO’s likely FEFTA approval date.
• On 21-Aug, YAGEO responded by upping the bid 7% to ¥6,635. Minebea responded by saying no raise, no extension. Minebea was playing chicken. Shares fell Friday.
• Very early Saturday, the Nikkei reported YAGEO would raise to the “¥7,100 range.” Reuters later reported YAGEO had raised to ¥7,130. Exactly 15% above Minebea. On YAGEO’s website.

• On 21 August, Yageo Corporation (2327 TT) increased its Shibaura Electronics (6957 JP) offer by 7.0% to JPY6,635. On 23 August, Yageo further increased its offer by 7.5% to JPY7,130.  
• The offer is partially in reaction to Minebea’s recent comments around Yageo securing FEFTA approval. Crucially, Yageo finally provided an update suggesting that only a few issues remained.
• Yageo’s JPY7,130 offer is not over-the-top, as Minebea’s 10x EV/EBIT pricing guideline outlined on 18 August potentially justified a JPY7,300 offer. The likelihood of Minebea walking has increased.

• Context: The Tencent (700 HK) vs. Hang Seng Index (HSI INDEX) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: After Tencent’s recent outperformance, going long the HSI and short Tencent targets an 8% return.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• China Telecom (H) (728 HK), JD Logistics (2618 HK) and Pop Mart (9992 HK) will be added to the Hang Seng Index (HSI INDEX) at the close on 5 September.
• Estimated one-way turnover is 2.5% and the estimated round-trip trade is HK$11.25bn (US$1.44bn). The official capping will be done based on closing prices from 2 September.
• At 88 constituents, we near the 100-index member target. The target is likely to be reached by early-2027 – maybe 2026 given mainland companies listing of H-shares on the HKEX.

• On Friday 22 August, the Hang Seng Index team announced the changes to the Hang Seng Technology Index for the September 2025 rebalance.
• Team Quiddity had one low conviction ADD/DEL pair “predicted” but there were no name changes announced. 
• Horizon Robotics (9660 HK) is a big FAF upweight, as expected. There are other small changes and big capping/re-capping moves. We see US$3.9bn to trade.

• On Friday 22 August, the Hang Seng Index team announced the changes to the Hang Seng Internet and IT Index for the September 2025 rebalance.
• There are 3 ADDs and 3 DELs. We predicted 2/3 ADDs and 3/3 DELs correctly. 
• The funding flows and FAF re-weight flows are bigger than the ADD/DEL flows but there should be ~US$850mm to trade.

• TSMC: +25.6% Premium: Latest Spike is Opportunity to Short the ADR Spread
• UMC: +2.0% Premium; Near Level to Go Short the ADR Spread
• ASE: +5.1% Premium; Good Level to Take Profits on Previous Long Since Parity

• Intel has reached an agreement with the U.S. government, under which Washington will invest $8.9bn for a 9.9% equity stake in the company.  
• Intel benefits from the optics of government backing, which could help sentiment and prevent downside pressure on the stock in the short term, i.e. near-term optics positive, fundamentals unchanged. 
• TSMC’s Japan and Germany fabs were structured through co-investments and partnerships, with equity involvement only when tied to technology access (e.g., Sony CMOS JV). 

• In a high-stakes move to stay competitive in the rapidly evolving AI landscape, Meta Platforms is radically restructuring its artificial intelligence organization.
• The company is dismantling its existing Meta Superintelligence Labs (MSL) and splitting it into four specialized groups—focused on research, product, infrastructure, and superintelligence.
• This development follows months of internal tension and strategic uncertainty, culminating in a significant leadership pivot with the appointment of Scale AI’s founder Alexandr Wang as Meta’s new Chief AI Officer.

• Amdocs recently announced its financial performance for the third quarter of fiscal year 2025, which showcased mixed results and highlighted the company’s strategic focus areas and operational achievements.
• The company recorded a revenue of $1.14 billion, marking a 3.5% increase in pro forma constant currency compared to the previous year.
• This was aided by significant contributions from various regions, most notably a record quarter in Europe.

• There are 13 changes a side for the NIFTY Midcap 150 Index at the September rebalance. There are many stocks with flows from passive trackers of other indices.
• Estimated one-way turnover is 7.8% resulting in a round-trip trade of INR 18.23bn (US$209m). With over US$43bn tracking the index actively, the impact on the stocks will be much larger.
• The adds to the index have outperformed the deletes over the last 5 months and there has been noticeable outperformance in the last couple of weeks.

• There will be 3 changes for the Hang Seng Internet & Information Technology Index (HSIII Index) at the September rebalance. 
• Estimated one-way turnover at the rebalance is 10.3% resulting in a round-trip trade of HK$6.4bn (US$818m). There are a bunch of stocks with over 0.5x ADV to trade.
• There is a huge FAF increase for Horizon Robotics and that will bring passive buying from the HSTECH trackers too. The stock is being added to a global index on Tuesday.

• Context: Volatility cones chart implied volatility against historical percentiles across the term structure, providing a clear framework to evaluate whether options are trading cheap or rich.
• Highlight: Several high-profile HK stocks currently show historically cheap implied volatility. With some of them trading near 52-week highs, now may be an opportune time to hedge.
• Why Read: Spot opportunities, assess regime shifts, and manage risk effectively — volatility cones turn complex data into actionable insights for traders and investors.

• Intel has agreed to convert US CHIPs Act funding (past & future) & Secure Enclave contracts into a 10% equity stake for the US Administration.
• The equity stake will comprise 433.3 million primary shares of Intel common stock at a price of $20.47 per share, a roughly 16% discount to their market value yesterday
• In his commentary on the deal, President Trump referred to Intel CEO Lip-Bu Tan as a victim, stating he came to the White House to save his job. Wow!

• Fortinet’s second quarter of 2025 financial results reflect a strong and balanced performance, driven by its strategic focus on unified cybersecurity solutions and robust customer growth.
• Fortinet saw a 15% increase in billings to $1.78 billion, with revenue growing 14% to $1.63 billion, primarily fueled by its expanding market presence in unified Secure Access Service Edge (SASE) and AI-driven security operations.
• The company maintained a solid non-GAAP operating margin of 33%, indicating operational efficiency despite increased investment activities.

• Global Payments Inc. has reported its second quarter 2025 earnings, showcasing progress across several business segments and initiatives.
• The company’s earnings for the quarter slightly surpassed expectations, with adjusted net revenue reaching $2.36 billion, marking a 5% constant currency growth when excluding dispositions.
• The adjusted operating margin improved by 130 basis points to 44.6%, with adjusted EPS increasing by 11%.

• As of August 2025, the smartphone war has shifted—hardware takes a backseat, and AI drives the battle.
• Google’s Pixel 10 has emerged as the AI leader, showcasing real-time voice translation, proactive features like Magic Cue, and intelligent photo tools.
• These aren’t experimental; they’re already in users’ hands.

• Zillow Group’s recent quarterly performance highlights several strategic advancements and operational successes alongside some challenges that offer a comprehensive view of its current and future growth trajectory.
• Zillow Group reported a 15% year-over-year increase in total revenue, reaching $655 million for the second quarter, surpassing their predicted outlook.
• This growth is an encouraging sign, especially when paired with the attainment of a positive net income for the second consecutive quarter.

• CDW Corporation’s second quarter financial results for 2025 showcased a balance of solid performance alongside the challenges posed by a dynamic market landscape.
• The company reported consolidated net sales of $6 billion, marking a 10% increase over the same period last year.
• Gross profit rose by 5% to $1.2 billion, and non-GAAP net income per share increased 4% to $2.60.

• Novanta Inc. reported its second-quarter 2025 earnings, reflecting solid operational performance amidst a challenging macroeconomic and trade environment.
• The company achieved revenue of $241 million, marking 2% reported growth but indicating a slight 2% decline in organic revenue.
• Notably, sales from newly launched products surged by over 50%, and customer orders saw a significant uptick sequentially, highlighting a strengthening market outlook.

• Minebea Mitsumi (6479 JP) has bid ¥6,200/share for Shibaura Electronics (6957 JP). The tender ends 28 August. YAGEO has over bid now to ¥6,635/share.  
• YAGEO’s regulatory clearance decision may not arrive before 1 September, after the Minebea tender closes. Minebea now says they will neither bump nor extend. 
• Minebea is hoping people will throw in the towel and tender because if their tender ends and Yageo’s fails, it might a long way down. There are possibilities but… scary.

For our next Corporate Webinar, engageIR by Smartkarma is glad to welcome StarHub Ltd (STH SP)’s CEO, Mr. Nikhil Eapen.

In the upcoming webinar, Nikhil will share a short company presentation after which he will engage in a fireside chat with Smartkarma Insight Provider, Alec Tseung. The Corporate Webinar will include a live Q&A session.

The Corporate Webinar will be hosted on Wednesday, 17 September 2025, 17:00 SGT.

About StarHub

StarHub is a leading homegrown Singapore company that delivers world-class communications,
entertainment, and digital services. With their extensive fibre and wireless infrastructure and
global partnerships, they bring to people, homes and enterprises quality mobile and fixed
services, a broad suite of premium content, and a diverse range of communication solutions. They develop and deliver solutions incorporating artificial intelligence, cybersecurity, data analytics, Internet of Things, and robotics for corporate and government clients.

StarHub is committed to conducting their business sustainably and responsibly. StarHub is named among TIME’s World’s Most Sustainable Companies 2025 and ranked as the world’s most
sustainable wireless telecommunication provider on the Corporate Knights Global 100 (2025).
StarHub also ranks 187 on the FORTUNE Southeast Asia 500 in 2025. Listed on the Singapore
Exchange mainboard, StarHub is a component stock of the SGX iEdge Singapore Low Carbon
Index, iEdge-OCBC Singapore Low Carbon Select 50 Capped Index; as well as the FTSE4Good
Index series.

For more information on StarHub, please visit https://ir.starhub.com/

• The Deal: KKR and JIC are taking Topcon (7732 JP) private via a ¥3,300/share tender offer (~100% premium), with CEO Eto and ValueAct reinvesting.
• Likely Outcome: The offer is highly likely to succeed, with minimal regulatory risk and low probability of a price bump.
• Investor Action: Shareholders should tender into the offer to lock in value, as risk‑reward does not justify holding out.

• Nota is getting ready to complete its IPO on KOSDAQ in September. Nota specializes in lightweight and optimized artificial intelligence (AI) technology.
• The IPO price range is from 7,600 won to 9,100 won. At this price range, the company’s expected market cap is from 163 billion won to 196 billion won. 
• Nota provides technology that enables the efficient operation of high-performance AI models even on resource-constrained edge devices, centered around its proprietary AI model optimization platform, NetsPresso®.

• AppLovin has reported strong financial results for the second quarter of 2025, showing robust growth in both revenue and EBITDA.
• The company generated approximately $1.26 billion in revenue, marking a 77% increase year-over-year, and achieved an impressive adjusted EBITDA of $1.02 billion, representing an 81% margin.
• The primary driver of this growth was the company’s core gaming advertising business, although there was also notable performance within the e-commerce sector.

• R Systems International (RSYS IN)  has signed a definitive agreement to acquire 100% equity of Novigo Solutions Pvt. Ltd., a specialist in low‑code/no‑code automation, intelligent automation, and product engineering. 
• The transaction creates a combined platform with approximately INR 2,061.9 crore in revenue and approximately INR 381.9 crore in adjusted EBITDA. 
• CY26 a year transformation, turnaround and high growth if deal concludes timely

• Advanced Energy Industries’ latest earnings results offer a comprehensive snapshot of the company’s performance and strategy as of the second quarter of 2025.
• The company reported a notable revenue increase of 21% year-over-year, driven largely by a strong demand for its data center power solutions.
• This marked the third consecutive quarter of year-over-year growth, suggesting a positive trajectory in business performance.

Verve Group’s Q225 results show year-on-year growth slowing to 10% (-4% organic), from 32% (16% organic) in Q125, affected by technical challenges over the integration and unification onto a single supply-side platform (SSP), now resolved. FY25 revenue guidance is revised down 9% at the mid-point, affecting the anticipated EBITDA margin, which is also affected by adverse fx moves. The platform unification was a major exercise in enabling the business to scale more efficiently and effort is now being focused on driving sales, including expansion into new geographic markets. The group’s ID-less, AI-driven advertising solutions have established a leading position in the important US mobile market and the medium- to longer-term prospects remain attractive.

• Cirrus Logic reported robust financial results for the first quarter of fiscal year 2026, reflecting a strong demand for its products, particularly in the smartphone sector.
• The company achieved revenue of $407.3 million, surpassing the higher end of their guidance.
• This performance was primarily driven by strong demand for smartphones featuring Cirrus Logic’s silicon, marking a 9% increase in sales year-over-year.

• Clear Secure, primarily recognized for its identity verification platform, has delivered a robust second quarter for fiscal 2025 with notable expansion across various segments of its business operations.
• With a strategic focus on travel, enterprise applications, and new innovative solutions, the company has demonstrated significant advancements and future growth potential despite a challenging macroeconomic environment.
• The following investment thesis and summary of results encapsulate both the strengths and potential challenges faced by Clear Secure.

• In response to Minebea Mitsumi (6479 JP) matching its Shibaura Electronics (6957 JP) offer on 14 August, Yageo Corporation (2327 TT) increased its offer by 7.0% from JPY6,200 to JPY6,635.  
• To remain in the game, Yageo had to bump. The latest bump underscores Yageo’s confidence in securing regulatory approvals. 
• The Minebea CEO suggested that its JPY6,200 offer would be the final one. If Yageo secures regulatory approval (likely), Minebea will walk rather than match Yageo’s latest offer. 

• Fractal Analytics Ltd (2453623D IN) is looking to raise about US$560m in its upcoming India IPO. The deal will be run by Axis, GS, MS and Kotak.
• Fractal Analytics Limited is an enterprise artificial intelligence (AI) company which supports large global enterprises with data-driven insights and assists them in their decision making through its end-to-end AI solutions.
• According to the Everest Report, FAL was India’s leading pure-play enterprise data, analytics and AI company, recognized globally, with capabilities across the data, analytics and AI (DAAI) value chain.

• TSMC Chairman C.C. Wei previously emphasized that customer demand for 2nm technology surpasses that for 3nm, and the company is actively working to expand production capacity. 
• For 2nm technology, we expect production to take place at the Tainan fab, ahead of the U.S. Arizona fab and earlier than the previously anticipated 2028 timeline.
• Taiwan Semiconductor (TSMC) – ADR (TSM US)’s next generation 2nm development is actively progressing.

• IFAST SP has risen 28% since our initiation and has seen net institutional outflows of S$50m in the first week of the month.
• We see further upside of 12%, as the value in terms of P/AUM is not reflected in the price.
• Recent private transactions such as the Chocolate Finance Series A+ deal round indicate that iFAST is cheap relative to its assets. There is a strong chance of a buy back in 2026.

• The growth rate of GMV (Gross Merchandise Value) rose to 18% YoY in 2Q25 from 15% YoY in 1Q25.
• The operating margin improved to 13% in 2Q25 from 11% in 2Q24 so that operating profit increased by 35% YoY in 2Q25.
• We conclude an stock upside of 91% for the next twelve months. Buy.

• A major Intel balance sheet boost, backed by SoftBank, the U.S. government, and leading institutions, would enhance the company’s capacity to make bold bets on regaining global chip manufacturing leadership.
• UMC’s market valuation is less than the capex for just one advanced fab. Intel would likely make a gain on its investment since it would cause UMC shares to rally.
• For less than the cost of a single advanced fab, a large company could acquire UMC and gain chipmaking expertise approaching TSMC’s level; boosting returns across an entire fab network.

• Freee KK (4478 JP)  reported 4Q and full-year FY06/2025 results last week which disappointed the market leading to a sell-off.
• After reporting 3-consecutive quarters of Adj. OP, profitability dipped in 4Q due to higher advertising and D&A costs. However, freee expects to return to profits in the current fiscal year. 
• Following 4Q results, premium over Money Forward has disappeared and Freee is currently trading at a huge discount to MF which seems unwarranted

• SoftBank widens its AI bet with a $2B stake in Intel, suffers a 12% dip over two consecutive days.
• Nvidia’s dominance has hyperscalers wary of lock-in. With Amazon and Microsoft building their chips, SoftBank’s move lands right as the market searches for alternatives.
• Can Son replicate Intel’s historic design-fab alignment in AI, or would execution risk outweigh his ecosystem-diversification logic?

• Salesforce is charging deeper into the AI frontier.
• On August 18, 2025, the CRM titan announced a definitive agreement to acquire Regrello, an AI-native startup that specializes in transforming fragmented business processes into orchestrated, automated workflows.
• The deal, expected to close in Salesforce’s fiscal Q3 2026, underscores the company’s commitment to building out its “agentic enterprise” vision—where human workers and AI agents collaborate in real time.

• The Lok Sabha passed the Online Gaming Bill, 2025, banning all RMG platforms and putting Nazara’s PokerBaazi investment at significant risk.
• While Nazara has no direct RMG exposure, its INR 805 crore PokerBaazi bet could turn worthless, raising concerns over capital allocation and valuation pressure. 
• Core businesses remain strong, but regulatory uncertainty warrants caution. Near-term downside risks persist; long-term clarity hinges on execution and policy direction. 

• According to Reuters, the US government may be interested in acquiring equity stakes in Samsung Electronics and TSMC in exchange for CHIPS and Science Act grants.
• The US government is exploring ways to take equity stakes in these two Asian tech giants that have been expanding their semiconductor facilities in the United States.
• If the US government decides to invest $10 billion each in Samsung Electronics and TSMC, they would represent about 3% and 1% of Samsung Electronics and TSMC’s market caps, respectively. 

• Results: Q1 revenue ¥51.8B (–21% YoY) and OP ¥10.9B (–44%) came in weak, with DRAM softness offset partly by NAND strength.
• Guidance: FY26/3 outlook (¥244B revenue, ¥55.2B OP) reiterated, implying a sharp 2H acceleration in shipments and margin recovery.
• Valuation: Shares trade at ~11× EV/EBITDA, a discount to peers, but execution risk keeps the multiple constrained.

• Advancing from Breakdown to Breakthrough:ROHM Co Ltd (6963 JP) returned to profitability in Q1FY25 on improved demand and cost controls with strong outlook for Q2.
• Rohm is actively implementing structural reforms, with a priority on ensuring profitability in any market environment.  It is also drafting its second Medium-Term Management Plan for FY26 to FY28.
• It continues to be available at significantly cheaper valuation versus peers of just 0.8x price to book. Also, it has been added to the Nikkei 225 Index recently.

• Astera Labs, in its second quarter of fiscal year 2025, showcased robust financial performance and strategic advancement in its market positioning.
• The company reported revenue of $191.9 million, reflecting a 20% increase from the previous quarter and a notable 150% year-over-year rise.
• This substantial revenue growth was attributed to increased demand in both its signal conditioning and switch fabric product lines, notably with the Scorpio P-Series switches.

• Intel is suddenly at the center of a high-stakes drama.
• Just this month, the Trump administration reversed its public criticism of CEO Lip Bu Tan—who had been accused of being “conflicted” due to his past China ties—and moved into “constructive discussions” about a possible government equity stake in the company .
• That shift followed a White House meeting that apparently reset the tone, with Trump calling Tan’s journey “amazing” after once demanding his resignation .

• Broadridge Financial Solutions presented a robust financial performance in its fiscal fourth quarter and full year 2025 results, signaling positive momentum and strategic positioning for future growth.
• The company reported a 7% increase in recurring revenue on a constant currency basis and an 11% growth in adjusted earnings per share (EPS), in line with its long-term objectives.
• This financial achievement was complemented by the strategic execution in key areas such as democratization and digitization of governance, capital markets innovation, and modernization of wealth management.

• US commerce secretary Howard Lutnick confirmed that the US Administration is pursuing a strategy of converting CHIPS Act funding into equity stakes with Intel acting as its guinea pig
• It seems clear that Mr. Lutnick is bent on applying the same formula with other beneficiaries of US CHIPs Act funding
• CHIPs Act Dollars for Equity, Pay For China Play may seem like innovative ideas but in reality they are a slippery slope to confusion & chaos. Who or what’s next?

Key points (machine generated)

• Comtech plans to announce the sale of its Public Safety / NG911 business unit, which has significant revenue and EBITDA.
• The business unit’s valuation could range from $400 million to $800 million, impacting Comtech’s financial standing and debt alleviation.
• A higher sale price could provide up to $300 million in net cash, greatly enhancing Comtech’s equity value.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Ukraine’s leading digital operator with 24m mobile and 1.1m broadband users, providing critical national infrastructure and direct exposure to the country’s recovery and EU-aligned digital renewal.
• Uklon as a transformative asset. With 100m+ annual rides and 100k drivers, Uklon adds unicorn potential and positions Kyivstar to anchor high-frequency platforms powering Ukraine’s next economic chapter.
• Robust financial profile with re-rating upside: US$1.2bn 2025E revenue, US$647m EBITDA, zero debt; trading at 5.2x EV/EBITDA vs peer 6.5x, with upside from ARPU convergence and reconstruction.

• Leidos’ second quarter results for 2025 reflected both positive growth and notable challenges.
• The company recorded robust revenue growth of 4.8% year-to-date, achieving record profitability with a 15.2% EBITDA margin and a 28% increase in operating cash flow for the quarter.
• These achievements were realized amidst a dynamic market environment and were attributed to Leidos’ strategic focus, centered on five growth pillars under their North Star 2030 strategy: space and maritime, energy infrastructure, digital modernization and cyber, mission software, and managed health services.

• Intel just announced that SoftBank has agreed to buy $2 billion worth of Intel stock, details here. 
• The shares are likely newly issued, meaning dilution of existing shareholders. Markets didn’t care and shares rose >5% in after hours trading. 
• $2 billion is a far cry from the $40 billion former CEO Craig Barrett thinks Intel needs. Could this be the first of similar deals with US semiconductor/technology companies?

• Monetary support may temporarily ease Intel’s current financial difficulties, but the ultimate solution lies in securing technical support from manufacturing.  
• We remain curious how the U.S. government will devise a solution for Intel if the company ultimately cannot provide the necessary support for U.S. Fabless players.
• We are bearish on Intel Corp (INTC US)’s current position and do not believe financial support alone can help the company overcome its challenges.

• Despite a 307% surge in revenue, CoreWeave’s extended six-year GPU depreciation schedule flatters its profitability while masking faster asset wear-down.
• Despite ballooning into a $30 bn market cap, CoreWeave is weighed down by debt and lease obligations; Q2 interest expense exceeded operating profit, with CRWV netting $290 m in losses. 
• The Aug 15 IPO lock-up expiry triggered insider selling via $1 bn+ block trades, driving a 35% stock plunge and spiking short interest.

• Guided down: ASML, Applied Materials, Tokyo Electron. Revised up: LAM. A number of reasons are mentioned for a slower outlook. China slowdown. TSMC lumpy. Export licenses. Geo-Globo uncertainty. 
• Yes, But: 1) Chinese firms bought too much equipment in 2022-24  2) Logic Capex of Intel Samsung will decline further  3) Chinese SPE vendors are gaining share 
• AI is real, HBM is real, SOCAMM is real, but TSMC and SK Hynix are not revising up Capex in 2025. Expect higher Capex in 2026 and 2027. 

• Arista Networks presented a robust financial performance in its second quarter of fiscal year 2025, reflecting substantial growth and strong market positioning, albeit with some areas of challenge and scrutiny.
• The company reported a record revenue of $2.2 billion for the quarter, surpassing expectations by $100 million and marking a 30.4% increase year-over-year.
• This impressive performance was driven by robust demand across its product sectors, particularly within the AI, cloud, and enterprise domains.

• Advanced Micro Devices, Inc. recently reported its financial results for the second quarter of 2025.
• The company’s performance was marked by significant achievements as well as notable challenges.
• Overall, AMD’s revenue reached a record $7.7 billion, which exceeded its forecasted midpoint, representing a 32% increase compared to the previous year.

• Soluna recently announced its 2Q25 earnings and business update, with revenue of $6.2 million, 295 MW of new project development (773 MW total), and a solid cash position.
• The YoY decline was driven by four factors that drove the decrease.
• Bitcoin halving and subsequent Hashprice volatility ($2.0 million), the change in commercial model mix to more Profit Sharing (fully offset by decline in cost of revenue by ($0.8 million) for no Gross Profit impact), lower Prop Mining volume related to site availability and miner efficiency ($0.6 million), and lower Demand Response Services driven by increased participation rate within ERCOT ($0.1 million).

• Sales increased by JPY16.4bn due to Iwatsu Electric’s acquisition, while operating profit declined by JPY964mn.
• Achievement toward full-year forecast reached 97.3% for sales, 84.7% for operating profit, and 79.6% for recurring profit.
• Sales and profit in the Security Equipment segment increased YoY, driven by large orders and strong replacement contracts.

Global Fashion Group’s (GFG’s) H125 results confirm continued growth in its two largest regions, Australia New Zealand (ANZ) and Latin America (LatAm) as they benefit from their prior repositioning, with improving trends in the number of active customers who are spending more with GFG. The third region, South-East Asia (SEA) remains a work in progress ahead of the arrival of a new CEO in September 2025. The underlying improvements in revenue, the higher gross margins across all regions, despite variable revenue trends, and the focus on generating cost savings and efficiencies are delivering consistent improvements in profitability.

Global Fashion Group’s (GFG’s) H125 results confirm continued growth in its two largest regions, Australia New Zealand (ANZ) and Latin America (LatAm) as they benefit from their prior repositioning, with improving trends in the number of active customers who are spending more with GFG. The third region, South-East Asia (SEA) remains a work in progress ahead of the arrival of a new CEO in September 2025. The underlying improvements in revenue, the higher gross margins across all regions, despite variable revenue trends, and the focus on generating cost savings and efficiencies are delivering consistent improvements in profitability.

• The Ministry of Finance has published an updated “FEFTA List” of classifications of listed companies as of July 15, 2025. 
• 50 names lowered their ranks from the most “core” Type 3 to Type 2(20), or Type 1(30). 104 names raised from Type 1(51) or Type 2(53) to Type 3.
• Smartkarma readers may want to peruse the lists and details to see if they think companies are trying to protect themselves (from threats as yet not known by the public).

• Japan Business Systems (5036 JP) today announced a couple of interesting things. First, admission to TOPIX (contingent on a successful secondary offering of shares, also announced today). 
• Then a ¥5/share special commemorative dividend (0.4%) and a “gift” of 4% of the company to a J-ESOP Trust for employees, where the company gifts the shares.
• The latter looks aggressive/generous, but the modalities here are interesting. 

• Temasek aims to raise around US$104m via selling nearly half of its stake in iFAST (IFAST SP).
• The stock has done exceptionally well over the past few years, however, it is now trading at its all time highs.
• In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

• With the averaging period for the October rebalance starting in two weeks, we forecast 2 changes for the FnGuide Semiconductor Top10 Index at the upcoming rebalance.
• Based on the passive assets tracking the index, there will be between 1.5-4.7x ADV to trade in the forecast changes.
• On average, the forecast adds have outperformed the forecast deletes by a wide margin over the last 3 months and could reverse some of the changes from the April rebalance.

• Context:Tencent (700 HK) has performed strongly this year, gaining 41% YTD, including 5.5% last week around its earnings release.
• Volatility Skew: A rare setup shows calls trading rich versus puts, creating favorable conditions for protective collar strategies.
• Actionable Trade Ideas: Three variations of a protective collar — with charts, pricing, and Greeks — illustrate how to position in the current market.

• The Hang Seng Internet & IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).
• We see three ADDs and three DELs and one float percentage revision which could collectively trigger roughly US$428mn in one-way index flows in September 2025.
• The index changes will be announced after the close on Friday 22nd August 2025.

• Context:Tencent (700 HK) reported 2Q25 results last week, beating expectations and fueling a 5.5% move in the stock.
• Market Reaction: Shares rallied while front-end options saw a pronounced volatility crush, rotating the term structure back into contango.
• Why Read: This note unpacks Tencent’s price action and the evolving volatility setup.

• Kyndryl, a prominent player in mission-critical enterprise technology services, presented its earnings results for the first fiscal quarter ending June 30, 2025.
• The company’s financial performance showcased notable progress alongside certain challenges, reflecting the ongoing transformation and strategic initiatives implemented since the spin-off from IBM.
• The company reported revenue of $3.7 billion for the quarter, an increase on a reported basis but a decline of 2.6% in constant currency.

• SUMCO reported Q225 revenues of ¥102.9 billion, flat sequentially and roughly 3% higher than guidance.
• Operating profit of ¥1.5 billion was also slightly better than the forecasted breakeven, but dramatically down from its peak of ¥30.2 billion in Q322.
• A projected further increase in depreciation charges for the current quarter is forecasted to drive operating profit to negative ¥3.5 billion. Yikes!

• ON Semiconductor’s recent quarterly performance showcases a nuanced landscape as it navigates market dynamics and strategic shifts.
• The company reported a 1.6% increase in revenue for the quarter, totaling $1.47 billion, which exceeded the midpoint of its guidance.
• The non-GAAP gross margin was 37.6%, with an earnings per share (EPS) of $0.53.

• Welcome to Curator’s Cut, a fortnightly roundup of standout themes from the 1,200+ Insights published over the past two weeks on Smartkarma
• In this cut, we review value-unlocking moves by Singapore-listed companies, take stock of India’s jewellery retail market, and track how Taiwan’s largest ETF drives flows for its adds and deletes
• Want to dig deeper? Comment or message with the themes you’d like to see highlighted next

• Results: Q1 FY25 sales grew +10.5% YoY with OP surging +56%, led by AI/data-center substrate demand and margin gains.
• Earnings Upgrade & Outlook: FY25–27 EPS/EBITDA raised 9–12% on stronger substrates and resilient ceramics, implying ~18–19% CAGR ahead.
• Valuations: Trading at 21× FY25E P/E and 5.9× EV/EBITDA, Ibiden offers structural growth at compressed multiples versus AI peers.

• The review period for the September rebalance of the KOSPI Size Indices commenced on 1 June and will end on 31 August.
• Nearing the end of the review period, we forecast 49 migrating stocks. Among new listings, 1 stock could be added to LargeCap, 3 to MidCap and 1 to SmallCap.
• There are a number of stocks that will have passive flow from global index trackers over the next few weeks, while some are potential changes to the KOSPI2 in December.

• Telstra is guiding to subdued mobile growth in FY26 as the cost of living bites.
• Earnings growth relies on cost cutting and satellite development.
• -Telstra’s FY25 in line, FY26 prognosis subdued -Cost of living driving customers to cheaper options -Major staff reductions to drive cost-outs -Satellite service critical to maintaining dominance