TMT/Internet

• Four times a year, the TSE reassesses free float weights for listed stocks. Indices run by the TSE adjust their index shares (shares out x FFW x coefficient) in Jan/Apr/Jul/October.
• Yesterday, the TSE announced its changes for this quarter. Combined with other adjustments on 30 July at the close, we expect 190+ events.
• For now, we expect the trade is about US$3.3bn a side. At the top of the buy side, 16 names with more than $30mm to buy, averaging 5x ADV.

• Samsung Electronics announced today that it plans to conduct a large scale buyback worth 3.9 trillion won, of which 2.8 trillion won will be cancelled. 
• Samsung Electronics reported  consolidated sales of 74 trillion won and operating profit of 4.6 trillion won in 2Q 2025, down 0.1% and 55.9% YoY, respectively. 
• The average daily trading volume (ADTV) of Samsung Electronics (005930 KS) (common shares) is 15.43 million. Therefore, the share buyback of 56.89 million (common shares) represents 3.7x of ADTV. 

• If stock comp stays all in commons like last time, cancellation hits ~1.40% of SO in commons, 1.72% in prefs — setting up preferreds for relative outperformance.
• If they cancel the full pool, Samsung Life + Fire’s stake hits 10.14%, forcing a ₩500B block — nearly 2x the ₩280B print back in Feb.
• Again, odds are the overage hits the tape again — watch for a potential block print before the third leg wraps, like what played out in Feb.

• Douglas Kim and Sanghyun Park have discussed Samsung Electronics (005930 KS)‘s 3.9 Trillion Won Share Buyback Plan announced on July 8th. Read the details in their insights.
• Our latest insight maintained our BUY recommendation: the stock rallied during the following 2 weeks, reaching 64,700, then was marked as “very overbought” in our latest Global Tactical Weekly view.
• The stock started to pull back last Friday, after reaching extremely overbought levels (64700). This insight presents a tactical view for Samsung Electronics direction, for the next 2-3 weeks. 

• Lens Technology (300433 CH), a precision manufacturing solution provider, raised around US$700m in its H-share listing.
• Lens Technology (LT) is one of the leading players in precision structural parts and modules integrated solutions for both consumer electronics and smart vehicles interaction systems.
• We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the trading dynamics.

• Lens Technology (6613 HK) priced its H Share at HK$18.18 to raise HK$4,768 million (US$607 million) in gross proceeds. The H Share will be listed tomorrow.
• I discussed the H Share listing in Lens Technology H Share Listing (6613 HK): The Investment Case. 
• Lens had the fourth-highest international oversubscription rates among recent large AH listings. The AH discount is attractive in part due to the decent price momentum.

• Looking ahead to the third quarter, we estimate that TSMC’s revenue in U.S. dollars could grow by approximately 5–10% quarter-over-quarter.
• Buoyed by the AI boom and the recent increase in U.S. semiconductor investment tax credits to 35%, TSMC will achieve its full-year target of 25% growth in U.S. dollar revenue.
• In the second half of the year, as multiple brands launch flagship smartphone chips, TSMC’s N3P process is fully prepared for volume production.

• Power GaN coming oversupply, an illustration. The fear is a repeat of the SiC situation (large capacity built in China, Wolfspeed filling for bankruptcy protection) 
• Samsung delays A14 to focus on 3-2nm. Samsung and Intel have the same problem: yields are too low to attract customers.  
• Chinese GPU are coming – or IPO are coming? Moore Threads and MetaX approved to list in Shanghai. Tiny revenues, lots of R&D. Biren Technology expected to file in HK.

• Kokusai has delivered steady growth, with revenue rising from ¥181.8B in FY2021 to ¥238.9B in FY2025 and a strong rebound in profitability.
• It plans to expand capacity, grow service revenue beyond 35%, and launch next-gen tools for GAA logic and 3D memory.
• At ~22x P/E and 12.5x EV/EBITDA, valuations appear fair given its scale, but upside exists if GAA traction and service leverage play out.

• McGraw Hill is backed by Platinum Equity and is looking to potentially debut in July. 
• For the fiscal years ended March 31, 2025, 2024 and 2023, they generated revenue of $2,101.3 million $1,960.5 million and $1,947.8 million, respectively.
• The education sector in which this company operates in is one that has “mixed feelings” amongst IPO investors.

• The US$10.23bn net inflow through the Southbound Stock Connect in June marked a near-doubling from the May slump (US$5.85 bn), though it’s still lower than the 15-month average (US$12.1 bn).
• Investors bought high dividend yield SOEs heavily (e.g. China Construction Bank), and sold Tencent, Xiaomi, Alibaba. Healthcare companies – Innovent Biologics and CSPC Pharma were bought, underscoring investors’ defensive stance.
• Investors’ dividend yield fascination seems unabated.  Some technology stocks (Tencent) do not seem overbought. Despite large buying, EV and ecommerce heavyweights (Meituan) are declining. Investors’ appetite in them could slump.

• TSMC: +26.3% Premium; Near Record High After U.S. 4th of July Holiday
• UMC: +4.7% Premium; One of the Highest Levels in History — Short
• ASE: +4.6% Premium; Wait for More Extreme Level Before Going Long or Short

• Figma Inc., a VC-backed collaborative design software maker, filed for long-awaited IPO. Morgan Stanley and Goldman Sachs are the lead bankers on the offering.
• The San Francisco-based company was valued at $12.5B in a 2024 tender offer. Figma is well-positioned with a strong brand among designers and a growing footprint in enterprise segment.
• With strong financial profile and network effects, driven by large scale and efficient GTM strategy, the company remains the leader in collaborative design software market.

• ASML has been underperforming for 18 months. Recent downgrades are a delayed recognition of reality. ASML’s management goals for 2030 (10% revenue growth Cagr) are ok (plausible) 
• But growth is slowing fast in 2H25-1H26. Growth should re-accelerate in 2H26 as the impact of China and  Mature node lower spending, multiple delays (Intel, Samsung) is fading away. 
• The stock is getting cheaper, but lacks catalysts for another 2-3 quarters. Trading at 25x forward PEx, that’s reasonable given the firm’s intrinsic qualities.

• Capgemini to acquire WNS for $76.50 per share in cash; deal implies a 28% premium to VWAP and aims to create a global leader in AI-powered intelligent operations.
• WNS traded at a discount to peers pre-offer; Capgemini expects meaningful synergies (~$8.63/share NPV), justifying the 16x P/E takeout. No termination fee is disclosed publicly.
• Interloper risk is modest; deal certainty is high. With a 3.83% gross spread (pre-market) and 8.15% annualized return, the arbitrage setup is attractive barring regulatory or shareholder surprises.

• Protean’s exclusion from the PAN 2.0 project raises concerns about potential long-term revenue loss, especially as tax services contribute significantly to its current business.
• Protean’s strategic diversification into pension services, digital identity solutions, and international markets positions it well for long-term growth, reducing reliance on tax services.
• With INR800 crore in cash reserves and zero debt, Protean is financially resilient, allowing it to invest in new growth areas, making it attractive for long-term investors despite short-term volatility.

• Figma Inc. is planning to go public in the second half of July. The amount the company intends to raise is not yet disclosed, but it’s likely to exceed $1B.
• I like Figma’s high growth, rule of 60 story, cash flow generation and solid balance sheet. They are profitable and still growing 40%+ YoY while doing $800M+ in LTM revenue.
• I believe Figma’s premium multiple is justified given its best-in-class metrics, top-tier VC investors and Adobe’s attempt to acquire the design software maker for ~$20B in 2022.

• US Eyes New AI Chip Restrictions on Malaysia and Thailand
• Chip and AI Boom Driving Taiwan’s Offshore Wind Expansion — Local Stocks to Watch
• China Set to Become World’s Largest Semiconductor Foundry Hub by 2030 — But One Needs to Consider Leading Edge Capacity vs. Mature Capacity

• We are reiterating our Buy rating, projections and $30 price target for A.k.A. Brands after visiting Princess Polly stores in California and the Culture Kings flagship in Las Vegas.
• We believe overall momentum in the brand has remained strong, with continued high demand and the Princess Polly customer quickly snapping up impressive fashion items at full prices.
• The theme for Princess Polly remains expansion, from the opening of the newest store (in Glendale), to adding the potential to display 20%+ more units, increasing the level of newness even further and tying offerings close to their debut on the website.

• The review period for the September rebalance of the Hang Seng TECH Index ended on 30 June, the changes will be announced on 22 August and implemented on 5 September.
• No constituent changes will result in a one-way turnover of 4.1% and that will mean a round-trip trade of HK$15.2bn (US$1.94bn).
• An expansion of the index universe could lead to one constituent change and that increases the one-way turnover to 6.2% and the round-trip trade to HK$23.1bn (US$2.94bn).

• In this insight, we provide the top 10 stocks picks and key catalysts in the Korean stock market for the two weeks (4 to 18 July 2025).
• Korea Electric Power (KEPCO) (015760 KS) was the best performing stock among the top 100 stocks in KOSPI in the past two weeks. 
• The top 10 picks in this bi-weekly include LG Uplus, KCC, SK Hynix, Naver, Korea Kolmar, Korea Investment Holdings, Misto Holdings, Lotte Tour Development, LG Chem, and SK Inc.

• A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
• ECM developments: FWD Group Holdings (1828 HK), Geekplus Technology (2590 HK), NTT DC REIT (NTTDCR SP) IPOs and Lens Technology (6613 HK) H Share listing.
• Event-Driven developments: Shandong Fengxiang (9977 HK), Yichang HEC Changjiang Pharma (1558 HK), Jilin Jiutai Rural Comm Bank (6122 HK), New World Resources (NWC AU), Insignia Financial (IFL AU). 

• GitLab recently reported its financial results for the first quarter of fiscal year 2026, demonstrating a robust revenue increase of 27%, amounting to $214.5 million.
• The company’s non-GAAP operating margin reached a commendable 12.2%, a significant improvement from the previous year’s negative margin.
• GitLab’s CEO, Bill Staples, emphasized the strategic positioning of its AI-native, cloud-agnostic DevSecOps platform, which caters to the entire software development lifecycle and supports a unified data store for contextual AI.

• Tan’s continuation of IDM 2.0 marks a pragmatic recalibration. By focusing on margin recapture and tailored customer models, Intel’s ambitions are not just about competing with TSMC at scale.
• Intel’s 18A node was never intended as a mass-market foundry product; it was a strategic, internal milestone to reestablish process credibility, with commercial foundry ambitions anchored in 18A-P and 14A.
• Intel’s future hinges less on market share and more on executing a credible, margin-accretive foundry model.  It could well emerge as a second-source alternative in a geopolitically fragmented supply chain.

• Jabil Inc. presented a strong performance in its third quarter of fiscal year 2025, surpassing expectations in multiple financial metrics.
• The company reported net revenue of $7.8 billion, marking a 16% increase year-over-year and exceeding earlier guidance by $800 million.
• This boost was primarily attributed to the Intelligent Infrastructure sector, particularly in AI-related revenue, supporting robust demand in cloud and data center infrastructure markets.

• Oracle Corporation has reported a strong performance for its fourth quarter and fiscal year 2025, surpassing expectations in terms of both revenue and earnings per share (EPS).
• The company’s results reflect significant momentum in its cloud transition, which has been a strategic focus for several years.
• On the positive side, Oracle has demonstrated robust growth across its cloud offerings.

• Alphabet is making headlines once again—this time for a groundbreaking deal that could reshape the future of clean energy.
• In one of the largest commercial commitments yet to nuclear fusion, Google has signed an agreement with Commonwealth Fusion Systems (CFS) to purchase 200 megawatts of electricity from the company’s first commercial fusion power plant, ARC, currently under development in Chesterfield County, Virginia.
• This deal marks a major endorsement of fusion power as a viable long-term solution to the surging energy needs of hyperscale technology companies.

• Given the METI extension on FEFTA review on Shibaura (6957 JP), risks are slightly higher. <¥5,900 was a good buy on an incremental basis. ¥5,970 is OK but not spectacular.
• As expected (at least by me) – I Squared has withdrawn its Offer for HKBN Ltd (1310 HK).
• Re: New World Development (17 HK), this “rescue package” announcement – ~HK$88.2bn – should come as no surprise, as the alternative situation (liquidation/bankruptcy) and the ensuing optics were not great.

• Taiwan Semiconductor Manufacturing Company (TSMC), the world’s most advanced chipmaker and a linchpin in the global semiconductor supply chain, is making a historic push into the United States.
• With a combined $165 billion committed to building six fabs, two advanced packaging facilities, and an R&D center in Arizona, TSMC aims to address strong customer demand from U.S.-based tech giants like Apple, NVIDIA, AMD, Qualcomm, and Broadcom.
• The first fab, using 4nm technology, has entered high-volume production, and construction on the second and third fabs is underway.

• CLEAR has reported its fiscal first quarter results for 2025, showing a mixed performance that reflects both growth opportunities and some challenges.
• The company, known for its secure identity platform, emphasized continued progress in expanding its products and services, especially in the travel sector, while also navigating broader macroeconomic uncertainties.
• Starting with the positives, CLEAR reported strong membership growth, with total members on its network reaching 31.2 million, a 42.3% increase year-over-year.

• Power Integrations, Inc. reported Q1 revenues of $106 million, reflecting a 15% year-over-year increase, aligning with the mid-point of its guidance range.
• The company achieved a non-GAAP EPS of $0.31 and realized a strong cash flow, which supported its strategic decision to repurchase shares amidst market volatility.
• Each of the four primary end markets—consumer, computer, communications, and industrial—witnessed growth.

• Accenture reported a strong third-quarter performance in fiscal 2025, surpassing revenue guidance with $17.7 billion, marking a 7% growth in local currency.
• The company maintained its role as a leader in generative AI (Gen AI), securing $1.5 billion in Gen AI bookings and generating over $700 million in related revenue.
• Accenture also expanded its operating margin by 40 basis points, with EPS growing by 12% to $3.49, reflecting robust financial health.

• Lens Technology is getting ready to complete its IPO in Hong Kong. Lens Technology is planning to raise as much as HK$4.77 billion (US$608 million) in this IPO.
• If the offer size adjustment and overallotment options are exercised, the IPO gross proceeds could increase to HK$6.3 billion (US$803 million).
• In 2024, the company held a 13% share of the global market for precision structural parts and modules for consumer electronics and a 20.9% share of smart vehicle interaction systems. 

• Vodafone Idea (IDEA IN) faces severe financial distress due to INR 83,400 crore in mounting Adjusted Gross Revenue (AGR) dues and substantial deferred payment obligations. 
• Management warns Vi cannot operate beyond Financial Year 2026 without timely government support for AGR dues, halting crucial bank funding.  market.
• Vi proposes payment plans and seeks substantial funding, while ARPU is growing, and the government supports a three-player

• Our base case valuation of Lens Technology is market cap of 146 billion CNY  based on P/E of 24.9x our estimated net profit of 5.8 billion CNY in 2026.
• The company’s current market cap is 120.7 billion CNY. Thus, our base case valuation represents a 21% upside from current levels.
• Lens Technology is well positioned to be one of the first companies to undertake large-scale production of key components and complete device assembly for humanoid robots and AI glasses.

• Verint Systems Inc. presented its Q1 2026 earnings results, showcasing a strong beginning to the fiscal year.
• The company reported accelerated annual recurring revenue (ARR) growth of 6%, with total revenue of $208 million and non-GAAP diluted earnings per share (EPS) of $0.29, both surpassing guidance expectations.
• This positive performance was primarily attributed to the company’s expanding AI momentum, led by its AI-powered bots and CX automation platform.

• Coosea Smart Technology Co., Ltd. (CST) is looking to raise about US$100m in its upcoming Hong Kong IPO. The deal will be run by Citic.
• According to Frost & Sullivan, in 2024, CST was the world’s second largest end-to-end solution provider for local smartphone brands by shipment volume, and rose to first place in 1Q25.
• During the Track Record Period, CST generated revenue from over 70 countries or regions, mainly focusing on Asia and Americas.

• Hong Kong single stocks traded lower in a holiday-shortened week.
• Breadth pulled back sharply from the previous week’s extremes and Put activity picked up noticeably across single stock options.
• Intervention in HKD continues to ramp steadily higher with HKD bumping along top of the range. 

• Pinterest, once seen as an also-ran in the social media race, is quietly engineering one of the most data-driven comebacks in the digital advertising world.
• With its Q1 2025 results showing a 16% year-over-year revenue increase to $855 million and monthly active users (MAUs) hitting a record 570 million (+10% YoY), Pinterest is demonstrating clear traction.
• The platform’s focused evolution—from a passive pinboard to an AI-powered visual discovery engine with deep commerce integrations—is attracting attention across investor circles.

• Peraso Inc. reported its financial performance for the first quarter of 2025, unveiling a combination of significant advancements and continuing challenges faced by the company.
• The firm’s revenues reached $3.9 million, up from $2.8 million in the same quarter of the previous year, showing a clear year-over-year growth.
• This expansion was driven primarily by increased shipments of millimeter wave (mmWave) products, indicating their growing market acceptance.

• Core Scientific’s first quarter fiscal year 2025 results highlight its strategic pivot towards high-density colocation infrastructure, driven largely by its significant agreements with CoreWeave.
• This strategic focus is shaped by the growing demand for advanced computing capabilities informed by AI-driven infrastructures, representing both opportunities and challenges for the company’s future.
• A pivotal point in Core Scientific’s strategy is its collaboration with CoreWeave, which underpins its expansion into AI-focused datacenter infrastructure.

• Ambarella Inc., the Santa Clara-based semiconductor designer known for its AI-enabled imaging chips, is reportedly exploring strategic options—including a potential sale.
• The company has engaged bankers and quietly approached potential acquirers, according to Bloomberg.
• Shares of Ambarella surged over 21% on the news, pushing its market capitalization to approximately $2.6 billion.

• YAGEO’s deal for Shibaura Electronics (6957 JP) had been extended a couple of times – once for Shibaura’s yuho, and once for Taiwan Investment Commission Approval. 
• YAGEO had re-filed its notification for FEFTA on 2 June, and the “normal” 30 day waiting period expired 1 July. YAGEO extended by 4 business days to 15 July.
• The TRS amendment was less informative than the TDNET release today. That’s worth reading. More waiting ahead. But the timing may be politically strategic.

• The real point of Reuters’ article on Intel CEO “new” Foundry strategy is, imo, to pre-announce the possibility of a very large write off 
• TSMC discontinues GaN doesn’t matter, it’s not even 1% of revenue. 1) Auto demand is slow, GaN is lower margins, lot of competition  2) management has better things to do 
• UMC 6nm rumor, maybe yes but most likely with Intel’s manufacturing after 2030. UMC and Intel first start with 12nm in 2027-28.

• On Monday, June 30, Meta CEO Mark Zuckerberg announced the creation of Meta Superintelligence Labs, staffing it with a host of leading researchers from the likes of OpenAI and Google 
• With astronomical hiring bonuses and lucrative compensation packages, this newly assembled team will struggle to gel and likely drive an exodus of existing Meta AI employees elsewhere
• Yann LeCun is sidelined in the MSL memo. He believes LLMs are not the way to achieve human-level AI. It appears that Mark Zuckerberg disagrees. Let’s see…

• UMC’s renewed push into 6nm, paired with Intel’s strategic overhaul under new CEO Lip-Bu Tan, raises the likelihood of an Intel equity stake in UMC.
• We maintain our Structural Long view on UMC and reiterate our original thesis: a deeper partnership via a stake from Intel would be transformative.
• At 12.5x trailing PER with a net cash position, UMC remains attractively valued as a strategic asset — especially if can essentially have its own ‘Group’ advanced fabs with Intel.

• SmartRent’s first quarter earnings call for 2025 highlights several dynamics at play in the company’s pursuit of sustainable growth and value creation.
• The company, well known for its Internet of Things (IoT) technology, aims to transform property operations and enhance resident experiences.
• SmartRent’s approach involves extensive IoT device integration, a software platform compatible with third-party systems, and deployment expertise tailored to retrofit environments.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Softbank Group
• The UST curve bear-steepened yesterday, alongside a selloff in long-dated UK gilts. The yield on the 2Y UST rose 1 bp to 3.79%, while that on the 10Y UST climbed 4 bps to 4.28%.
• Equities advanced after US President Donald Trump announced that he had reached a trade deal with Vietnam. The S&P 500 was up 0.5% to a fresh record of 6,227, while the Nasdaq rose 0.9% to 20,393.

• Belden Inc.’s first-quarter results for 2025 reveal a mix of considerable growth achievements and underlying challenges.
• The company reported revenues of $625 million, a 17% increase from the previous year, surpassing the high end of its guidance.
• This was complemented by a 29% rise in earnings per share (EPS) to $1.60, driven by an improvement in gross margins to 39.8% and adjusted EBITDA margins to 16.6%.

• Banxa agreed to be acquired by OSL Group for C$1.55/share in cash, pending shareholder and regulatory approval.
• Banxa’s management and founder hold a combined 46% stake on a fully diluted basis, potentially securing shareholder approval.
• The termination fee for the OSL transaction is set at 5% of the transaction value, indicating elevated risks.

• MACOM Technology Solutions Holdings, Inc. reported its financial results for Q2 of fiscal 2025, demonstrating strong growth across its core business segments, namely Industrial & Defense, Data Center, and Telecom.
• The company achieved a revenue of $235.9 million, marking a significant sequential increase from the previous quarter.
• Adjusted earnings per diluted share were recorded at $0.85, showcasing a robust bottom-line performance.

• Yelp Inc. reported solid financial performance in the first quarter of 2025, achieving an 8% year-over-year increase in net revenue to $359 million, exceeding their expectations.
• This growth was driven by the continued strength in Yelp’s services business, contrasting with challenges faced in the restaurant, retail, and othercategories (RR&O) which saw a 3% revenue decline year-over-year.
• Profitability saw significant improvements with a net income margin expansion by 3 percentage points and an adjusted EBITDA margin increase by 4 percentage points compared to the same quarter last year.

• Jim Chanos discusses Bitcoin treasury companies and their flaws on Bloomberg Audio Studios Podcasts Radio News
• Companies are continuing to adopt the strategy of using treasury to buy Bitcoin
• The value of companies like MicroStrategy is being inflated by the appreciation of their Bitcoin holdings

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

• Taiwan Semiconductor (TSMC) – ADR (TSM US) is planning to scale back its presence in the gallium nitride (GaN) market to focus on high-growth areas.
• To meet customer demand, Taiwan Semiconductor (TSMC) – ADR (TSM US) has recently been reallocating resources away from mature process nodes.
• We estimate that Navitas Semiconductor Corp (NVTS US) alone consumes over half of TSMC’s GaN capacity each month, making it TSMC’s largest GaN customer.

• Pine Labs (0568874D IN) is looking to raise up to US$1bn in its upcoming India IPO. The deal will be run by Axis, Citi, MS, JPM and Jefferies.
• Pine Labs (PL) is a fintech firm focused on digitizing commerce through digital payments and issuing solutions for merchants, consumer brands and enterprises, and financial institutions.
• According to a Redseer Report, PL was the largest player in issuances of closed and semi-closed loop gift cards by transaction value in India in FY24.

• SoftBank group (SBG) relies increasingly on Arm’s premium valuation for NAV growth, with SBG shares having benefited from their high correlation to those of Arm Holdings
• JPY-USD FX strengthened recently, with the potential for BoJ monetary tightening and Fed easing set to accentuate this trend; SBG is USD asset heavy, and JPY heavy in its liabilities
• The Vision Funds are slowly seeing IPO exits for private companies; in essence, we see that SBG shares are challenged by (geo)political, concentration, currency and market risks

• Even if Intel Corp (INTC US) ceases marketing 18A to new customers, the company will still fulfill existing foundry commitments.
• In response to the 18A dilemma, Intel’s initial solution is to redirect resources toward the development of 14A, a next-generation process where Intel hopes to gain an edge over TSMC.
• In addition to the strategic realignment of the foundry business, Tan’s broader efforts include refreshing Intel’s leadership team.

• KKR’s £40/share offer is now board-recommended, displacing Advent’s prior bid; Spectris shares trade near offer price with minimal spread.
• With full board support and limited regulatory risk, the market implies >99% deal certainty.
• Advent must act swiftly or concede defeat; further bidding appears unlikely but not impossible.

• Tax credit increase from 25% to 35% (portion of investment deducted from taxable income), which becomes as impactful in $ as the direct subsidies or about $40bn. 
• The US is working hard to make Semi investments more attractive. Subsidies, loans and tax credits altogether now approach $150bn. 
• That could mitigate a little bit of TSMC price increase in Arizona. But it’s not massive. The impact of tax credits increase from 2% of revenue to 3%. 

• Shanghai Sunmi Technology Co., Ltd. (SSTC) is looking to raise about US$100m in its upcoming Hong Kong IPO. The deal will be run by DB, Citic, and ABCI.
• SSTC is the largest Android-based BIoT solution provider in the world in terms of revenue in 2024, with a market share of over 10%, according to CIC.
• The company mainly relies on offline channels as over 99% of total revenue was generated from offline channels over the Track Record Period.

• Extra Edition of the Broker Call Report

• Capillary Technologies India Ltd (CTIL) (0611334D IN)  is looking to raise about US$240m in its upcoming India IPO. The bookrunners for the deal are JM Fin, IIFL, Nomura.
• CTIL provides AI-based, cloud-native SaaS products and solutions, primarily serving enterprise customers generating over ₹8 million in annual revenue from operations.
• As per the Zinnov Report, CTIL was the global leader in loyalty and engagement management by product count in FY25, and among few offering end-to-end loyalty solutions.

• Lens Technology (6613 HK)‘s global offering opened yesterday, and the raise could reach up to US$800m if the offer-size adjustment option and the overallotment option are exercised.
• The allocation to cornerstone investors is smaller than in other recent AH listings. The discount of over 25% to the A-shares is attractive given the recent trend for large listings.
• Lens Technology (6613 HK) could be added to a global index in December. Inclusion in Southbound Stock Connect in August and HSCI inclusion could take place in March 2026.

• Back on the 9th May 2025, Domain Holdings Australia (DHG AU) entered into a Scheme, at A$4.43/share (in cash), with CoStar, the same terms as the 27th March NBIO. 
• Apart from the standard Scheme vote, this needs FIRB to sign off.  Nine Entertainment Co Holdings (NEC AU) (60.05% shareholder) is supportive.
• The Scheme Booklet is now out, with a Scheme Meeting on the 4th August, and expected implementation on or before the 27th August. The IE (FGrant Samuel) says “fair & reasonable“.

• Chinese iPhone glass supplier Lens Technology (6613 HK) has announced the terms for its H-share listing, and plans to raise around US$600m through issuing 262.3m shares.
• The company’s listing is priced at HK$17.38-18.18 per share, at a 25-28% discount to the last close price of the  A-shares as of 27th June.
• Our valuation analysis suggests that the company’s H-share offering is priced reasonably compared to domestic and international peers.

• Lens Technology (6613 HK), an industry-leading integrated one-stop precision manufacturing solution provider, has launched an H Share listing to raise US$600 million.
• I discussed the H Share listing in Lens Technology H Share Listing (6613 HK): The Investment Case. 
• The proposed AH discount of 24.8% to 28.1% (based on the 27 June A Share price) is attractive, and I would participate in the H Share listing.

• Samsung doesn’t provide guidance when it reports, but gives revenue an operating profit guidance ~2 weeks before reporting. But we have an officially non-official preview in Korean media. 
• 2Q25 operating profit will be “weaker than expected”, declining “by more than 15% from the first quarter” to KRW mid-5 trillion range. Consensus expects +1% QoQ. 
• Some positive news to counter balance this large disappointment – smartphone, HBM3E – I am skeptical any of these can lift profits in 2H25, revisit early 2026.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Softbank Group, New World Development
• US Treasury yields fell yesterday. The UST curve bull flattened, with the yield on the 2Y UST declining 3 bps to 3.72%, while that on the 10Y UST was down 5 bps at 4.23%. Equities climbed to new record highs.
• The S&P 500 rose 0.5% to 6,205, while the Nasdaq advanced 0.5% to 20,370. Contracted sales for China’s Top 100 developers in June declined 23% y-o-y but were up 15% m-o-m at CNY 339 bn, according to CRIC.

• Fastly Inc.’s earnings report for the first quarter of 2025 highlighted several key aspects of the company’s financial performance and strategic direction, presenting both opportunities and challenges for investors to consider.
• Positively, Fastly reported revenues of $144.5 million, surpassing their guidance range.
• This represents an 8% increase year-over-year, suggesting positive momentum in their revenue growth, notably higher compared to the previous quarter’s 2% growth.

• Samsung Said to Have Give Up Chasing TSMC at the Leading Edge of Chip Manufacturing
• Xiaomi’s Tesla-Killer YU7 EV Surges in Orders — TSMC Rides the Wave as Core Chip Supplier
• TSMC (2330.TT; TSM.US): Will Rapidus Threaten TSMC’s 2nm Market? We Think It’s Too Early to Say (II)

• Calix Inc. reported its first quarter 2025 results, showcasing solid performance, with a clear articulation from its leadership about navigating a dynamic environment in the broadband industry.
• The company, which focuses on providing differentiated broadband experiences through its appliance-based platform, cloud services, and managed service models, recorded revenues of $220 million, reflecting a 7% sequential growth.
• This growth can be attributed to both strong demand and a significant pull-forward from a large customer, which contributed to the quarter’s overperformance.

• Endava’s third quarter fiscal year 2025 results reflect a mixed performance impacted by both internal dynamics and external macroeconomic conditions.
• On the positive side, Endava reported GBP 194.8 million in revenue, marking an 11.7% year-over-year increase, demonstrating resilience amidst a challenging environment.
• The company also achieved an adjusted profit before tax of GBP 24.6 million, up significantly from the previous year, translating to a healthy adjusted PBT margin of 12.6% compared to 8.9% previously.

• Lens Technology (300433 CH), a precision manufacturing solution provider, aims to raise around US$600m in its H-share listing.
• Lens Technology (LT) is one of the leading players in precision structural parts and modules integrated solutions for both consumer electronics and smart vehicles interaction systems.
• We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.

• Early take based on avg daily mkt cap: 5 MID→LARGE, 6 LARGE→MID. Count mismatch due to LG CNS likely making a direct jump into LARGE post-March IPO.
• Local insto-driven moves remain tradable — in the March reshuffle, price action started from T–2M, with strongest returns in the T–1M window.
• With cap gaps near historical norms, it’s time to pre-position around top/bottom cutline names — then scale up into borderlines as we move into the T–1M window.

• Lens Technology (6613 HK), an industry-leading integrated one-stop precision manufacturing solution provider, has launched an H Share listing to raise US$600 million.     
• In terms of revenue in 2024, Lens is a global leader in precision structural parts and modules integrated solutions for both consumer electronics and smart vehicle interaction systems.
• The investment case is based on a well-performing core business, limited tariff impact, reduced reliance on Apple, strong margins, and robust cash generation. 

• In recent months, Nvidia has quietly transformed from the undisputed leader in AI semiconductors into a formidable new player in cloud computing.
• What began with DGX Cloud—launched two years ago as an infrastructure offering focused on AI workloads—has evolved into a full-fledged attempt to reshape how cloud services are consumed and delivered.
• The latest development is the launch of DGX Cloud Lepton, a marketplace designed to aggregate unused GPU capacity across a network of Nvidia-aligned cloud providers, including CoreWeave, Lambda, and Crusoe.

• Lisuan new GPU is a first step, but performance far behind AMD/Nvidia. Loongson new server CPU looks good, close to Intel chip of 2021. Major bottleneck remains SMIC 7nm capacity.
• Qualcomm looks close to qualifying Samsung’s 2nm to manufacture Snapdragon 8 Elite 2. This would imply a major yield breakthru for Samsung.
• Microsoft ARM CPU Maia is in production, but its AI accelerator Braga seems delayed significantly – either performance or an architecture rethink.

• Nemetschek SE demonstrated robust performance in the financial year 2024, underlining its capacity to sustain growth and profitability amid challenging global economic conditions, particularly in the construction industry.
• The company’s transition towards a subscription and Software-as-a-Service (SaaS)-centric business model has proven instrumental in its strategic evolution, contributing significantly to recurring revenue growth.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Constellation Software is a conglomerate of vertical market software companies that primarily grow through acquisitions
• Revenue growth in 1Q25 was 13%, driven by acquisitions and a shift to more SaaS models
• Free cash flow available to shareholders was up 14% to $510 million, excluding adjustments like the IRGA liability

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

• Euronet Worldwide concluded its first quarter of 2025 with several notable achievements and strategic moves that highlight both the strengths and challenges of the company’s diverse business model.
• The company reported double-digit growth in both operating income and adjusted EBITDA, an 18% increase in operating income compared to the previous year.
• The growth spanned across all segments, driven by robust performance in transaction processing and foreign exchange activities.

• Maximus, as reported in their recent second quarter fiscal 2025 earnings, exhibited a mixed performance, reflecting both strengths and challenges in their operational environment.
• The company reported solid revenue growth, driven primarily by its U.S. Federal Services segment, which saw a 10.9% increase in revenue due to robust performance in clinical assessments and increased demand for certain services.
• This growth, however, was slightly offset by a decline in their U.S. Services segment, attributable to the completion of prior year excess volumes linked to Medicaid unwinding.

• GoodRx’s recent results for the first quarter of 2025 reflected a mixed performance and strategic repositioning under the new leadership of CEO Wendy Barnes, who marked her first 100 days in the role.
• The company reported total revenue of $203 million, a year-over-year increase of 3%, with prescription transaction revenue and manufacturer solutions growing by 2% and 17%, respectively.
• GoodRx also achieved an adjusted EBITDA of $69.8 million, up 11% from the previous year, indicating a solid profit margin.

• China Mobile (941 HK) has secured all PRC regulatory approvals for its HKBN Ltd (1310 HK) offer. The remaining precondition is approval from the HK Communications Authority. 
• I Squared, while technically still in the race, is rapidly running out of time. It needs to announce an offer before China Mobile opens its offer for acceptance.
• Despite the HKBN CEO’s comments that the China Mobile offer is not good enough, China Mobile has no pressing need to bump if a competing offer fails to materialise.

• TSMC: +23.4% Premium; Consider Shorting ADR Spread at Current Level; Record Short Interest in Local
• UMC: +1.1% Premium; Wait for More Extreme Premium to Short
• ASE: +2.9% Premium; Near Level to Go Long the ADR Spread

• Xiaomi surged to new all-time highs following its ecosystem launch and strong YU7 pre-order momentum.
• We examine option market activity to assess what’s being priced and whether sentiment is getting ahead of itself.
• Two option trade structures are outlined to reflect our findings.

• Lens Technology (300433 CH), a precision manufacturing solution provider, aims to raise around US$1bn in its H-share listing.
• Lens Technology (LT) is one of the leading players in precision structural parts and modules integrated solutions for both consumer electronics and smart vehicles interaction systems.
• In this note, we look at its past performance and other deal dynamics that might impact the listing.

• Kanzhun (BZ US) plans to raise around US$300m via a public offering for its H-shares.
• We have covered the company since its listing, links to our prior notes are below.
• In this note, we’ll talk about the deal dynamics and structure.

• Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
• On the IPO front, in a busy listing week, the results from listing were mixed.
• On the placements front, there were a number of large deals across the region.