TMT/Internet

• Founder Kim reportedly looking to offload his 21.5% stake, with EQT eyeing a ~30% control block including Shinhan’s. No succession plans, deal said to be under serious review.
• Kim’s control premium ask could trigger Korea’s first test case of expanded fiduciary duty, with minority holders potentially suing if tender terms aren’t seen as fair under new rules.
• Buyer likely prepping a Q3 tender offer; key watch is how minority premium stacks vs control block — could be Korea’s first de facto test case of mandatory tender mechanics.

• TSMC reported Q225 revenues of $30.1 billion, up 44% YoY, up 17.8% QoQ and handily beating the high end of the $29.2 billion guidance.
• Full year 2025 guidance raised to 30% YoY growth, and that may still not be enough
• Resumption of H20 sales to China not yet baked into forecast, an army of ex Intel employees coming on the job market & potential Fx reversal are all possible tailwinds

• Vivendi trades at a 37.7% discount to NAV, with a mandated buyout by Bolloré offering a realistic upside of 22–37% within six months pending French Supreme Court review.
• The AMF has ruled that Bolloré must launch a tender offer. Vivendi’s simplified structure, anchored by UMG, enables clear valuation through a detailed SOTP showing €5.26/share NAV.
• With liquidity exceeding €3bn, Bolloré can finance a buyout of minority shareholders. Even conservative pricing scenarios imply strong returns for arbitrage investors seeking event-driven upside.

• GOOGL is set to release Q2 earnings on Wednesday, July 23 after the close, having rallied 15.39% since Q1 results.
• Q2 has historically delivered strong average returns and the largest average absolute 1-day move.
• We explore how volatility and past earnings reactions frame expectations for the upcoming release.

• As reported by Patrick Liao and William Keating , Taiwan Semiconductor (2330 TT) is currently in very good shape, for multiple reasons, I invite you to read their insights. 
• The problem is: the stock closed at 1155 on Friday, blowing past through the roof of what our model has identified as a very extremely overbought “Tails” move.
• We said BUY in June, and know market euphoria can defy models when sentiment takes over, but our tools consistently flag overstretched conditions — a clear caution to late-stage buyers!

• IDC and Counterpoint released their 2Q25 smartphone estimates. Smartphone units increased 1-2% YoY. Best performer: Samsung +8% YoY, but this didn’t help 2Q operating profits. Vivo +5%, Apple +2%.
• The smartphone market is desperately flat – or in slow decline. Smartphone is 76% of revenues for Qualcomm, 57% for Mediatek, 50% Apple and Xiaomi, 35% Samsung, 31% TSMC. Problem?
• For Semiconductor firms (QCOM, MTK, TSM), chips ASP increases 10-15% at each generation, between node migration (N3, N2) and increasing AI functionalities. For hardware vendors (Apple, Samsung, Xiaomi), it’s worse.

• NT$ appreciation large impact on revenue / margins but TSMC beats consensus in 2Q, 3Q guidance is in-line. FX impact is partially neutralize by other factors (utilization, cost control) .
• This will be controversial: management increase 2025 US$-revenue growth from mid-20 to 30%. Yet, this implies that 4Q25 US$-revenue growth will collapse to 9% YoY and NT$-growth will be negative.
• At same time, mngt gives a long list of very positive messages on AI demand, N2 ramp, full utilization of EUV nodes.  This could lead to short-term stock price weakness.

• TSMC Beats, Raises, and Confirms AI Ramp Is Real, Despite FX Drag
• Conclusion — Maintain Structural Long View, 2026 Growth Likely Underappreciated
• TSMC ADR Premium Rebounds to 23.6% — US Investor Positioning Skewed Toward TSMC’s Unique AI Exposure

• 3Q25 Guidance: Revenue: US$31.8–33.0 billion (approx. 8% QoQ growth); Gross Margin: 55.5–57.5%; Operating Margin: 45.5–47.5%.
• Despite FX headwinds, TSMC aims to maintain gross margin ≥ 53%  
• Driven by strong demand in AI (including sovereign AI) and HPC; Full-year USD revenue growth outlook raised to ~30% YoY.

• The acquisition of Ansys Inc (ANSS US) by Synopsys Inc (SNPS US) has been completed today, 17 July and Ansys is expected to be deleted from Nasdaq100.
• CoreWeave (CRWV US) is forecasted to be added to Nasdaq100 as the replacement because it is the highest ranked eligible non-constituent following its recent listing on 28 March 2025.
• Top addition candidate for the December 2025 annual review is now Kimberly Clark (KMB US) following its listing transfer from NYSE to Nasdaq on 30 May 2025.

• Square Enix holds globally recognized IP with monetization upside across platforms, and recent pipeline discipline signals a shift toward higher-margin, high-quality titles that can stabilize earnings and restore growth.
• Activist involvement is intensifying, creating strong pressure for capital returns, governance reform, and strategic clarity – unlocking shareholder value in a business that remains structurally underleveraged and undervalued vs peers.
• With operating margins improving, digital sales accelerating, and cost structures being realigned, Square Enix is positioned to re-rate meaningfully as investor confidence rebuilds and management delivers on core turnaround objectives.

• The Hang Seng Internet & IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).
• In this insight, we take a look at the final rankings of potential ADDs and potential DELs for the September 2025 index rebal event.
• We see three ADDs/DELs and one float percentage revision which could collectively trigger roughly US$364mn in one-way index flows in September 2025.

• Update on changes to and revisions of analysts’ Best Ideas and Conviction Calls, as well as Model Portfolio compositions

• Computershare presented a robust performance in its first-half FY ’25 results.
• The company reported Management Earnings Per Share (EPS) of $0.653, an 18.7% increase over the previous period, driven by strong business momentum despite challenging macroeconomic conditions, including interest rate changes.
• The company’s management aims to build a simplified, high-quality, and capital-light business model, as evidenced by their recent divestment of the U.S. Mortgage Services business.

• Surecore offers a one-stop shop for SoC and IP design, from architecture to test, chip evaluation, and more
• Surecore’s team of highly experienced memory and mixed signal designers differentiate them from other design services providers
• Surecore’s expertise in low power design helps customers overcome challenges in advanced nodes, such as leakage and thermal management, ensuring sustainable next generation silicon solutions

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• BE Semiconductor Industries N.V. (Besi) recently reported its first quarter 2025 results, underlining a mixed performance amidst a challenging market environment.
• The company achieved revenues of €144.1 million, marking a slight decline of 1.5% compared to the same quarter last year.
• This reduction reflects continued weaknesses in the mobile and automotive markets, although there was some compensation from a surge in demand related to hybrid bonding and AI-related computing applications.

• Nvidia and AMD are set to resume scaled-down AI chip exports to China, marking a partial reversal of earlier U.S. export bans.
• China retains a near-monopoly on REE refining, controlling roughly 90% of global capacity, and its March 2025 export halt highlighted the leverage it holds over high-tech and defence supply chains.
• While markets rallied on the chip announcements, IV data suggests diverging risk expectations across Nvidia, AMD, and MP Materials, reflecting broader uncertainty around the durability and scope of this reopening.

• Adobe Inc.’s second quarter financial results for fiscal year 2025 demonstrate a strong performance, marked by significant revenue growth and strategic advancements in its core business segments.
• The company’s total revenue reached $5.87 billion, an 11% increase year-over-year, with a noteworthy contribution from its Digital Media sector, which achieved $4.35 billion in revenue.
• This sector’s annual recurring revenue (ARR) grew to $18.09 billion, reflecting a 12.1% increase.

• As Kinatico transitions to a new compliance SaaS solution, the legacy business provides funding for the new service development and a pool of potential customers

• Stock is down -10%. The 2026 revenue comment (“while we still prepare for growth in 2026, we cannot confirm it at this stage“), confusion on EUV growth should explain it.
• Number of EUV machines sold is flat but ASP is up 30% as machine’s throughput is up 30%. EUV revenue growth is in the mix, not units.
• China: I don’t know what they tried to say. Healthy demand in China, not falling off a cliff. But wait, China 1H25 revenue have declined -28% YoY.

• ASML today reported second quarter revenues of €7.7 billion, bang at the top of the guided range, flat QoQ and up 23% YoY
• Guided 2025 at 15% growth (~€35 billion), a big step up in confidence from the €30-€35 billion range given last quarter
• Comments regarding uncertainty about 2026 outlook and tariff impacts likely led to the >7% sell off currently happening in pre-market trading.

• Broad-based Weakness:Tata Consultancy Svcs (TCS IN) ‘s revenue declined 3.1% YoY in CC; domestic business fell sharply due to BSNL, while international demand remained soft across key verticals.
• GenAI Pivot Amid Margin Pressure: TCS is shifting from GenAI pilots to scaled deployments, investing heavily in AI skilling, while margins face pressure from underutilization and delayed deal ramps.
• Outlook Cautious Despite TCV Growth: TCV rose 13.2% YoY to $9.4 Bn, but mega deals are missing; execution delays and macro concerns cloud near-term visibility.

• ASML has released 2Q25 financials but the conf call is at 3pm. 2Q25 beat by 10% at Operating and Net Income level. 2Q25 bookings are low at €5.5bn. 
• 3Q25 weak revenue guidance, -9% below Consensus. But ASML maintains its 2025 guidance (+15% YoY or € 32.5bn, inline). Key problem: 1H25 revenue growth 34% YoY, 2H25 growth 2% YoY. 
• Growth should re-accelerate in 2H26 as the impacts of China lower spending, Mature node lower spending, multiple delays or cuts (Intel, Samsung) are fading away. 

• In this edition: • ASML Holding | expects 15% FY25 net sales increase with a 52% gross margin • Fugro | awarded a 7-year framework agreement with EirGrid

• Shareholders recently rejected Zee’s promoter-led capital infusion, limiting the founding family’s stake increase and influence.
• The failed fundraise underscores persistent questions about financial transparency and management’s past conduct. This decision further impacts market perception and investor confidence.
• This insight covers the whole story from the beginning of the allegations to the current status of the allegations and fundraising. 

• The company describes itself as a pioneer and leading provider of ultra-low power semiconductor solutions designed to address the significant power consumption challenges of general purpose and AI compute.
• For the three months ended March 31, 2025 and 2024, they generated net sales of $15.7 million and $15.2 million, respectively.
• The sector in which this company operates is one that is in favor. Powering the AI trade is one that investors are highly engaged in at the moment.

• The merger between Synopsys Inc (SNPS US) and Ansys Inc (ANSS US) marks a major industry milestone, having overcome extended regulatory hurdles, including a delayed approval from Chinese authorities.
• Ansys Inc (ANSS US) shareholders will receive $197 cash plus 0.3450 Synopsys Inc (SNPS US) shares per Ansys Inc (ANSS US) share, valuing the deal at about $35 billion.
• The merger is expected to significantly impact major U.S. indexes, triggering intra-quarter replacements and substantial passive fund flows.

• The ChiNext index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.
• The ChiNext 50 index is a subset of the ChiNext Index and it consists of the top 50 names in the ChiNext index with the highest daily average turnover.
• We see 3 changes for the ChiNext index and 5 changes for the ChiNext 50 index in the next index rebal event worth a combined US$600mm+ one-way.

• Yageo Corporation (2327 TT) has extended the close of its offer for Shibaura Electronics (6957 JP) from July 15 to August 1, the end of the waiting period for FEFTA approval. 
• Yageo remains confident of securing FEFTA approval. Blocking an acquisition of a Type 1 (non-designated business sector) company by a Taiwanese company would set a bad precedent. 
• There is a medium to high probability that Yageo secures FEFTA approval. Minebea Mitsumi (6479 JP) is likely to walk as it signalled a limited appetite to match Yageo’s offer. 

• STAR 50 Index is a tech-focused, blue-chip index in Mainland China which tracks the top 50 largest and most liquid names in the STAR market of the Shanghai Stock Exchange.
• STAR 100 index tracks the next 100 names (51st-150th ranks) and it represents the mid-cap segment of the STAR market.
• In this insight, we take a look at the potential ADDs/DELs for the STAR 50 and STAR 100 indices for the September 2025 index rebal event.

• TSMC: +20.6% Premium; FY2Q25 Results This Week a Key Catalyst
• UMC: 0.0% Premium (Parity); Wait for More Extreme Levels Before Going Long or Short
• ASE: -0.8% Discount; Historically Rare Discount, Long the ADR Spread

• We commend StarHub for putting shareholder returns as a key priority; it is front and centre in its annual reports, and a significant portion of the CEO’s compensation is tied to returns targets.
• This is certainly not common among SGX listed companies, many of which do not even have Return on Equity (“ROE”) targets.
• In fact, less than 20% of SGX companies have 5-year average ROE of more than 10%, which is approximately the cost of equity for most companies.

• Core Business acceleration: Business segment sales +28% YoY, driven by Mid-sized corporate strength; ARR +32% YoY to ¥29.6bn.
• Non-Core drag explains topline miss: Total sales +11.7% YoY to ¥11.5bn vs est. ¥12.1bn; ex-Hirac Fund, sales +18% YoY.
• Margin strength: Record-high EBITDA of ¥0.8bn (7% margin), achieved without one-off gains; signals improving core profitability.

• According to the local media, Netmarble is considering on issuing exchangeable bonds (EB) worth about 250 billion won backed by its stake in HYBE.
• The potential EB issue is likely to be slightly positive on Netmarble and slightly negative on HYBE (mainly due to additional shares that could be sold in the market). 
• We are Negative on BOTH Netmarble and HYBE. Their valuations are not attractive. Plus, HYBE could face a major negative issue of its founder Bang Si-hyuk who could be jailed. 

• US – China: Restrictions on Semiconductors are relaxed. EDA tool (Cadence, Synopsys) already relaxed, Nvidia says export license will come, this implies that HBM can be sold to China.     
• It’s really hard to “guess” what comes next as US restrictions on technology export to China are just one bargaining tool in much broader negotiations (trade deficit, fentanyl, etc).   
• For Cadence and Synopsys, China is 12% of revenues. For Nvidia, China is US$ 30-35bn revenue in 2025 (15-17%).  Positive to Samsung, supplying HBM3 (Nvidia’s H20), GDDR7 (RTX PRO).

• This is MoEF’s first gov-led tax reform—not lawmaker-initiated—and unlike April’s DP bill, it carries broader scope and priority fast-track status, boosting passage odds.
• Local chatter says MoEF is eyeing end-July to table its tax reform bill — that’s the base case making the rounds on the tape today.
• Gov may go full-scope: 9–25% div tax on all firms plus tax credits. Traders are now rotating into high forward-yield names ahead of MoEF’s late-July package.

• Daily buyback flow data for Samsung (ord + pref) since last Nov compiled — Excel file attached below.
• Started with ~1M/day (for ord), ramped up at 20–30%, then tapered post-60% — same playbook in both legs, with the second showing even more methodical, steady pacing.
• Price action tracked buyback flow closely — especially in leg 2, where the mid-heavy-light volume pattern showed strong consistency.

• Despite initially WARNing of 529 job cuts in Oregon, the actual number turned out to be 2,392
• Only 9% of the Oregon cuts are in management positions
• Huge cuts in technical employees across the board with a total of thirty Principal Engineers losing their jobs in Oregon alone.

• McGraw Hill is offering 24.39mm shares at $19.00-$22.00 equating to a market cap of $3.6b-$4.2b and is scheduled to debut on July 24th.
• The company is backed by Platinum Equity, a private equity firm that acquired the company from Apollo Global Management for approximately $4.5 billion in August 2021. 
• Private Equity IPOs are to be a theme in the 2H of 2025 and McGraw Hill will be a test for the market based on the financial profile.

• Intel Tapes Out New PC Chips on TSMC 2nm — Dual-Node Nova Lake Strategy Shows Dependence on TSMC… and Value of UMC for INTC in the Long-Term
• DRAM Memory Outlook — Nanya Results See Non-AI DRAM Demand Rebound; DDR4 Shortage Tightens, Expects Continued Strength in 2H25
• PC 2Q25: 6-7% Unit Growth YoY Is Pretty Good. 2025 Looks like a 5-6% Growth Year 

• A global perspective on what happened overnight

• Telenor Group reported its first-quarter earnings with some notable results and strategic updates.
• The Group, which operates in the telecom industry, emphasized its efforts in promoting stability amidst geopolitical turbulence.
• Telenor continues to focus on enhancing its digital infrastructure to meet rising demands for sovereign and mission-critical solutions and has launched new services such as Splitt in the Nordics.

• I summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
• Highest spreads: Mayne Pharma (MYX AU), Yichang HEC Changjiang Pharma (1558 HK), ENN Energy (2688 HK), Insignia Financial (IFL AU), Seven & I Holdings (3382 JP), Santos Ltd (STO AU).
• Lowest spreads: Bright Smart Securities (1428 HK), New World Resources (NWC AU), Humm Group (HUM AU), Hainan Meilan International Airport (357 HK), Avjennings Ltd (AVJ AU).

• For Mediatek Inc (2454 TT)’s 3Q25 outlook, its revenue is expected to decline by approximately 0–6% quarter-over-quarter, reflecting a relative low seasonal factors and order adjustments.  
• Regarding Mediatek Inc (2454 TT)’s partnership with Alphabet (GOOGL US), the TPU v7e is expected to begin tape-out in September 2025.  
• Based on current project developments using TSMC’s 2nm process, MediaTek is highly likely to co-develop the next-generation MTIA v4 ASIC with Meta (META US).

• Kinatico (ASX:KYP) CEO Michael Ivanchenko discusses the company’s Q4 trading update with RaaS director Finola Burke.

• Kinatico Ltd (ASX:KYP) is a ‘Know Your People’ regtech company providing workforce compliance monitoring and management technology and services.
• The company has announced that total revenue in Q4 increased 15% to $8.5m, with higher-margin SaaS (Software-as-a-Service) revenue making up 52% of the total, compared with 38% of total Q4 revenue in FY24.
• SaaS revenue grew 57% in the quarter on the previous corresponding period (pcp) to $4.4m and is tracking at $17.5m on an annualised basis.

• Local intel says Samsung’s 1c-based 12-high HBM4 is basically locked in to sample to NVIDIA by end of this month or early next.
• No hard proof Samsung hit 70% yield, but inside chatter’s bullish, internal mood’s upbeat, and that’s what’s driving the local market to chase the 1c HBM4 hype.
• With the Samsung Life Law quietly sidelined in recent reform talks, Samsung seems to have read the room and is now going full throttle on the HBM push.

• In a move that could redefine the future of web browsing and digital advertising, OpenAI is reportedly preparing to launch a new AI-powered browser that directly challenges Google Chrome—Alphabet’s flagship browser and a crucial pipeline for search traffic and user data.
• While the browser is still under wraps, reports indicate that it will feature a ChatGPT-like interface where users complete tasks and search queries within the app, bypassing traditional website clicks altogether.
• This launch follows similar innovations by AI search players like Perplexity, and represents OpenAI’s broader ambition to embed its AI across personal and professional user touchpoints.

• The engineering software sector may be heading toward another major shake-up as Autodesk weighs a potential acquisition of Boston-based PTC Inc., according to multiple sources familiar with the discussions.
• With PTC’s market value hovering around $23 billion, a deal of this magnitude could place Autodesk in a stronger competitive stance against industrial software giants like Siemens and Dassault Systèmes.
• While Autodesk has yet to confirm the move publicly, it is reportedly evaluating a cash-and-stock deal, working with advisers to assess the strategic benefits and financial implications.

• Dowooinsys (484120 KS) announced that it has confirmed its IPO price at 32,000 won, which is at the high end of the IPO price range.
• The demand ratio among the institutional investors was 785.4 to 1 with a total of 2,180 domestic and foreign institutions participating.
• Our base case valuation of Dowoo Insys is target price of 40,667 won per share, which is 27% higher than the IPO price (32,000 won). 

• We have found another gem in the Korean small cap industry. Messe ESANG is #39 in our Korea Small Cap Gem Series.
• Messe ESANG (408920 KS) is the number one player in South Korea’s exhibition and convention industry. 
• The company has a combination of strong sales growth, excellent operating margins, improving ROE, sound balance sheet, and cheap valuations. 

• Yangtuo Technology Inc. (YT) is looking to raise about US$100m in its upcoming Hong Kong IPO. The deal will be run by Citic.
• The company is a leading commerce and service platform in China, specializing in family care and nutrition products.
• YT was the largest commerce and service platform serving businesses in China’s family care and nutrition product industry in lower-tier markets in terms of GMV in 2024 (Frost & Sullivan).

• Megatronix Inc. (MI) is looking to raise about US$100m in its upcoming Hong Kong IPO. The deal will be run by Citi, CICC, and DB.
• MI is a leading, innovation-driven automotive technology company. MI focuses on developing and delivering AI-powered integrated domain control solutions that enable automakers to build the next generation of software-defined vehicles.
• It derives revenue primarily from sales of integrated domain control solutions, calculated based on the number of integrated smart domain controllers embedded with its solutions that are delivered to OEMs.

• Cumulative Q3 FY08/25 revenue rose 20.3% YoY, with operating profit up 2.9% YoY; no full-year forecast revision.
• Segment revenue progress rates: Content Distribution 77.8%, Store & Facility Solutions 78.6%, Communications & Energy 79.4%, Finance 92.0%.
• Full-year FY08/25 forecast: Revenue JPY360.0bn (+10.2% YoY), operating profit JPY31.0bn (+6.5% YoY), dividend JPY14.0/share.

• 4th July 2025 Alphabetically arranged Share prices and market capitalisations taken from Alpha Terminal from the current price on the day of publication.
• Top three shareholders are taken from the websites of the companies that we are writing about, unless there is a more up to date TR-1 notification RNS announcement.
• Cautious expectations may prove the best policy for growth in the longer term ALT University Challenge WPHO Revenue Tacking Altitude Group 24.5p £17.9m (ALT.L) Financial Calendar: Year End March, Results are expected to be reported on 29 July, Interims to September, to be reported by end of December Top Three Shareholders: Mr. Simon Taylor 14.00%, Mr. Martin Varley (Director) 12.95%, Mr. Keith Wills 9.22% Key Investment Points: Scalable growth, Attractive University niche, Improved Operational Gearing The end-to-end solutions provider of branded merchandise to the promotions industry is expected to report Finals to March on 29 July.

• Palantir Technologies recently reported an exceptionally robust third quarter for 2024, emphasizing the role of AI in its growth narrative.
• The company’s revenue surged by 30% year-over-year, fueled primarily by its U.S. operations, where government and commercial sectors grew by 40% and 54%, respectively.On the positive side, Palantir achieved significant traction in both government and commercial sectors largely due to its prowess in deploying artificial intelligence (AI) solutions.
• In the U.S. government sector, Palantir has significantly extended its capabilities, as highlighted by its success in enhancing targeting and operational efficiency for the Department of Defense (DoD) and other military branches.

• In Q1 FY02/26, TECMIRA recorded revenue of JPY2.7bn (-4.3% YoY) and operating profit of JPY86mn.
• IoT & Devices segment revenue increased 30.1% YoY, while Life Design segment revenue declined 43.6% YoY.
• Adjusted EBITDA declined 76.4% YoY to JPY60mn, largely due to the absence of new game releases.

• We are reiterating our Buy rating, $30 price target and projections for a.k.a. Brands as we look at key trends for 2HFY25 and beyond.
• We believe, perhaps due to tariff worries or limited trading volume or unfamiliarity with the company’s brands, investors are missing what is emerging as one of the few organic (and, in our view, compelling) growth stories in specialty apparel retailing.
• a.k.a. Brands management has, via the launch of Princess Polly retail locations, material wholesale expansion for both the Petal & Pup and Princess Polly brands, a renaissance at Culture Kings with an emphasis on the “test and repeat” model and a return to economic growth in the material Australian market, positioned a.k.a. Brands for material top line growth (and upside) and the potential to capture material operating leverage; we view these catalysts as significant multi-year drivers.

• Reconova Technologies Co., Ltd. (RT) is looking to raise about US$100m in its upcoming Hong Kong IPO. The deal will be run by CCBI, Huatai, and ABCI.
• RT is an AI company that provides visual AI technologies and products for enterprise clients.  
• RT is one of the first companies in the industry dedicated to full-stack visual AI technologies of computer vision algorithm, optical imaging optimisation, and computing power optimisation.

• We are changing our View on SK Square (402340 KS) to Negative.
• The major reason for this change is due to the surge in its share price along with lack of upside relative to its NAV.
• Regarding SK Square, our holdco discount remains 40%. However, if there are real, positive continued efforts to improve corporate governance, this holdco discount could be reduced further.   

• TSMC today reported June 2025 revenues of NT$263.71 billion, a decrease of 17.7 % MoM but an increase of 26.9% YoY
• At the guided exchange rate of 32.5, TSMC’s Q225 revenue amounts to $28.7 billion, up 12.2% QoQ and up 37.6% YoY, but roughly $100 million below the guided midpoint
• However, if we take today’s exchange rate of 29.24, Q225 revenue comes in at $31.9 billion, way above the guide. Take your pick & let’s see this day next week

• On the 15th May, dual-listed Oneconnect (6638 HK/OFT US), a digital retail banking/commercial banking/digital insurance play, announced a firm Scheme Offer from Ping An, OneConnect’s controlling shareholder.
• Ping An is offering HK$2.068/share, or US$7.98/ADS, a 72.33% premium to last close, and a 131.66% premium to the 30-day average. Net cash is, however,  ~HK$1.83/share. The price is final.
• SAMR has now signed off on the deal, satisfying the pre-condition. We await directions from the Cayman court on timing. I’m estimating late-September payment. Should the deal get up.

• The review period for the September rebalance of the KOSPI Size Indices commenced on 1 June and will end on 31 August.
• Nearing halfway in the review period, we forecast 53 migrating stocks. Among new listings, 1 stock could be added to LargeCap, 3 to MidCap and 1 to SmallCap.
• Two potential downward migrations could be deleted from a global index in August. The new listing that is a potential LargeCap add could be added to a globalindex in September.

• Consumer demand remains slow but Enterprises are upgrading to Windows 11. Low risk of tariff distortion: 1Q was too high in the US but 2Q has slowed down. 
• 2Q25 highest YoY growth: Apple (22%), Asus (17%), Lenovo (16%). Others are flat. Enterprise growth also implies higher ASP and margins for PC and CPU vendors.
• On the CPU side, AMD share gains have slowed in PC, accelerated in Server. Given their roadmap, AMD should keep gaining slowly, Intel defending with difficulty.

• Indra Sistemas S.A. showcased a mixed yet promising performance in its recent quarterly earnings report.
• The company demonstrated resilience and growth in several strategic areas amidst a favorable market environment driven by increased defense budgets in Spain and broader Europe.
• Key financial metrics such as backlog, order intake, and income displayed notable increases, signaling robust future order flow and operational momentum.

• In cumulative Q3 FY08/25, the company reported sales of JPY95.4bn, gross profit of JPY33.0bn, and operating profit of JPY11.9bn.
• Software Testing Related Services segment sales reached JPY61.9bn, with gross profit at JPY22.8bn and operating profit at JPY16.2bn.
• The revised full-year forecast for FY08/25 anticipates sales of JPY130.0bn and operating profit of JPY15.0bn.

• A global perspective on what happened overnight

• FY02/26 revenue was JPY7.3bn (+2.7% YoY), with operating profit at JPY2.1bn (-13.1% YoY) and EBITDA JPY2.5bn (-10.6% YoY).
• Q1 FY02/26 BDS sales revenue rose 3.1% YoY to JPY4.8bn, while DE business revenue increased 2.1% YoY to JPY2.5bn.
• WingArc1st revised FY02/26 forecast projects revenue of JPY31.2bn (+8.7% YoY) and operating profit of JPY9.0bn (+8.9% YoY).

• * A corporate client of Hybridan LLP.
• ** Potential means Intention to Float (ITF) or similar announcement has been made.
• ***Arranged by type of listing and date of announcement.

• After the close today, Kokusai Electric (6525 JP) announced that large holder (and original PE owner) KKR HKE Investment LP would sell down 30mm shares or 12.88% of shares out.
• This is not expected, but also not unexpected – it’s exactly a year since the first selldown. There is a decent-sized short position, and it isn’t a huge offering.
• This changes two aspects of the future supply/demand balance. Both are important for how this trades in coming months.

• KKR HKE Investment is offering 30m shares (12.86% of shares out) of Kokusai Electric (6525 JP) in a secondary offering that could raise up to JPY 91bn (US$620m).
• Applied Materials (AMAT US) will become the largest shareholder in Kokusai Electric (6525 JP) after the placement.
• There will not be a lot of buying from passive trackers following the placement, but it could ease the way for inclusion of the stock in the Nikkei 225 Index.

• KKR is looking to raise approximately US$620m through an accelerated secondary offering for around 13% of Kokusai Electric (6525 JP)‘s (KE) stock.
• KKR had sold in the IPO and undertaken an extended selldown in July 2024 as well. Hence, this deal is somewhat well flagged.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• On July 9, 2025, KKR announced it would reduce its stake in Kokusai Electric from ~23.5% to ~10.6% through a ¥90 billion overnight secondary offering.
• KKR’s move reflects a classic private equity monetization strategy following operational improvements and a successful IPO.
• While the sale caused a modest short-term share reaction (~2% dip), such liquidity events rarely impact long-term value—fundamentals remain the key driver for patient investors.

• In this insight, we discuss a pair trade between SM Entertainment Co (041510 KS) (long) vs HYBE (352820 KS) (short).
• There is an increasing probability that HYBE’s founder Bang Si-hyuk could face some jail time in which case there could be some vacuum of management leadership at HYBE.
• Despite its recent outperformance, SM Entertainment’s valuation is much more attractive than HYBE (SM is trading at 9.6x EV/EBITDA vs 18.5x for HYBE in 2026).

• 1st July the Korean media was “pre-announcing” 2Q25 operating profit to be “weaker than expected”, declining “by more than 15% from the first quarter” to KRW mid-5 trillion range. 
• Samsung official announcement is worse: operating profit KRW 4.6tn, down -56% YoY and -31% QoQ. This suggests a lower margins mix (less HBM, higher Foundry losses) and more Opex. 
• Last week, Consensus was expecting 2Q OP KRW 6.7tn, now down to 6.1tn. The reported 4.6tn is a nasty miss that implies that Consensus is way too high for 2H25. 

• We won’t be generation heads-down forever. Handsets are impractical as our primary device to interact with information technology.

• When we use them, we lose touch to the real world. Headsets are the obvious next step to allow for a more integrated experience.

• Meta has been betting on the handset-to-headset transition for more than a decade. And they have been doing so with courage and determination.

• The precondition for Oneconnect Financial Technology (6638 HK)’s scheme offer from Ping An is satisfied. The offer is HK$2.068 per share (US$7.976 per ADS). The offer price is final.
• Ping An Insurance (H) (2318 HK) is hoping that a dire 1Q25 and letters of support will nudge minorities to accept an offer that values OneConnect below net cash. 
• The high minority participation rate and protest votes at the recent AGM are warning signs that the vote is far from a done deal. Tread carefully.

• Figma (FIG US) filed for an IPO on the NYSE on July 1st for a debut later this month. 
• Their revenue was $749.0 million for the year ended December 31, 2024, representing 48% year-over-year growth.
• Adobe’s acquisition of Figma collapsed in December 2023 after regulatory hurdles paving the way for this IPO. 

• Zhen Ding Technology Holding (4958 TT) is leveraging its full-stack PCB and IC substrate portfolio to position itself as a critical enabler of AI hardware across cloud, channel, and edge applications. 
• AI-Linked hardware is expected to account for over 70% of Zhen Ding’s revenue in 2025, up sharply from 45% in 2024 and just 8% in 2023.
• Zhen Ding shares remain substantially below their 52-week highs; we see the company well-placed in terms of long-term drivers. Well placed for an upcoming AI robotics boom.