TMT/Internet

• Auto ICs over 50% of revenue and maintaining market share leading position, but 2Q25 guidance reflects China auto industry caution as China stimulus repeat impact fades and inventory stays lean.
• Himax advances in co-packaged optics (CPO) shipping samples; to supply TSMC and NVIDIA; Separately, Himax’s AR display tech may align with META’s needs.
• Strong auto positioning with 200+ Tcon design wins and CPO opportunity in AI/HPC supply chain reinforce long-term upside, despite soft near-term visibility. Maintain our Structural Long view on Himax.

• 1H25 strong revenue growth continues as capacity increase, “production shifting back domestically”, but weakening ASP and clearly demand pull-in in 1H due to US tariffs and China domestic consumer subsidies.
• “2H not clear, especially after late 3Q”. Management mentions the usual macro / US tariffs unknowns. 2025 Capex similar to 2024 (US$7.7bn, 80% revenue), D&A increasing, ASP down, margins muted.
• The stock is as expensive as always. 49x 2025 EPS, 41x 2026. Consensus is not expecting a negative tariffs shock or weaker China domestic demand.

• Operating loss in 1Q25 will persist in 2Q25 – I expect throughout 2025. Hua Hong rapid capacity increase is supposedly sold out but D&A is increasing much faster than revenue. 
• Consensus is not expecting an end-demand slowdown resulting from US import tariffs, or sluggish China domestic consumption. Consensus expects Hua Hong to sell its capacity increase fully. 
• Given losses in 1H25, Consensus EPS forecast is too high for 2025, probably for 2026 as well. Stock is expensive at 43x 2025 EPS, EPS forecasts looks too high.

• Unusual Machines (NYSE American: UMAC) reported another record quarter with revenue of approximately $2.04 million and a gross margin of 24% with some impact from tariffs, which the company expects to be short lived.
• This growth was achieved even though US government purchases have paused recently. Margins took a slight hit from the tariffs.
• The company raised $40 million at $5.00 a share to bolster its balance sheet (customers and suppliers need to see the ability to work large orders), and to build out its Orlando motor manufacturing facility.

• Domain Holdings Australia (DHG AU) entered a scheme implementation deed with Costar Group (CSGP US) at A$4.43 per share, a 42.0% premium to the undisturbed price.
• As CoStar is a US entity, FIRB approval should be forthcoming. The scheme vote is low-risk, as Nine (60.05% of outstanding shares) will vote in favour of it. 
• While attractive to precedent transaction multiples, the offer remains light compared to peer multiples. At the last close and for an end-of-August payment, the gross/annualised spread is 1.1%/3.6%. 

• Soluna just published its monthly update, which includes signing of term sheets for two new wind- powered data centers (Project Hedy for 120MW and Project Ellen for 100 MW), securing land for 166MW of Project Kati, and a new partnership with Blockware for hosting capacity at Project Dorothy 2.
• For April Soluna’s hosted hashrate was a record 1,727 PH/s, and it mined 10 Bitcoins
• Project Dorothy 1A/1B: Dorothy 1A (25 MW hosting) is fully deployed, and Dorothy 1B (25 MW prop-mining) has achieved strong hashrate growth and met Q1 2025 ancillary service requirements.

• Digital Arts forecasts FY03/26 sales of JPY12.6bn, operating profit of JPY6.2bn, and net income of JPY4.2bn.
• The company projects FY03/26 cost of sales at JPY3.3bn, with significant increases in labor and communication costs.
• Digital Arts plans a JPY95.0 annual dividend per share, including a JPY5.0 commemorative dividend for its 30th anniversary.

• For FY03/25, the company reported operating revenue of JPY84.3bn (+8.1% YoY) and net income of JPY12.4bn (+2.3% YoY).
• The company revised FY03/25 revenue forecast to JPY83.0bn, citing higher au Denki and handset sales, with increased expenses.
• FY03/26 forecasts include operating revenue of JPY85.0bn (+0.8% YoY) and capex investment of JPY6.9bn (+20.3% YoY).

• Amkor Technology reported its first-quarter financial results for 2025, delivering revenue of $1.32 billion, which reached the upper end of the company’s guidance.
• Earnings per share (EPS) stood at $0.09, pressured by increased research and development (R&D) expenses dedicated to advancing RDL technology for upcoming programs.
• The company’s global manufacturing operations have largely remained insulated from current tariffs and ongoing trade regulations due to their presence in free trade zones, minimizing direct impacts from U.S. import tariffs.

• FY03/25 revenue grew 10.9% YoY to JPY31.0bn, with operating profit at JPY5.5bn and net income at JPY3.5bn.
• EC Solutions revenue increased 6.9% YoY to JPY16.6bn, driven by e-commerce site development and cloud services.
• FY03/26 forecast: revenue JPY33.5bn, operating profit JPY6.0bn, with growth in EC Solutions and IT Solutions segments.

• Pre-Open, we got a Nikkei article which suggested four different prices possible. We got something in the middle. I think NTT is probably overpaying here.
• There is a fair bit of transparency in the documents and valuation. That is encouraging. There are no synergies counted in the fair calculations. That is discouraging.
• This will not trade like a “normal” Japan risk arb situation. There will be nuances. 

• Yageo Corporation (2327 TT) has now strongly overbid Minebea’s weak overbid of Yageo’s strong overbid of Minebea’s weak overbid of Yageo’s initial hostile offer for Shibaura Electronics (6957 JP). 
• We are now 40% higher than the initial bid and the best bid is approaching the top end of Valuation Agent’s top-of-DCF-range prices. There may be a bit more. Maybe.
• The question now is only whether Minebea responds. If it does, there is a little juice left, but if not, that’s it. It should get done.

• NTT Data Corp (9613 JP) has recommended a tender offer from NTT (Nippon Telegraph & Telephone) (9432 JP) at JPY4,000 per share, a 33.7% premium to the last close.
• The Nikkei earlier reported on the offer. The offer represents an all-time high and is attractive compared to historical trading ranges, peer multiples and precedent transactions. 
• The offer could be considered light as it is below the midpoint of the target IFA’s DCF valuation range. However, the shareholder structure suggests a done deal.  

• Yageo Corporation (2327 TT) has revised its tender offer for Shibaura Electronics (6957 JP) to JPY6,200 per share, a 12.7% premium to Minebea Mitsumi (6479 JP)’s JPY5,500 offer. 
• There are factors supporting Minebea again outbidding Yageo and Minebea withdrawing its offer. Minebea is in a predicament as Yageo has established that it wants Shibaura at any cost.
• The most likely scenario is that Minebea withdraws its tender and the Board switches to a neutral opinion due to its ongoing non-price-related concerns. 

• EToro Group Ltd., a social trading platform, sets terms for upcoming IPO in the United States. The online broker offers 10M Class A shares at range of $46.00-$50.00 per share.
• At the midpoint of price range, eToro would command a market value of ~$4B on a fully-diluted basis. The selling shareholders offer 5M Class A shares.
• BlackRock has indicated a non-binding interest in purchasing up to $100M worth of eToro shares. However, these shares will not be subject to a lock-up agreement.

• The SET50 index tracks the performance of the top 50 largest and most liquid names listed on the Stock Exchange of Thailand (SET).
• Here we look at the potential ADDs/DELs and capping flows for SET 50 for the June 2025 index rebalance. Currently, we expect three ADDs and three DELs for June 2025.
• Last time we didn’t like the look of the trades, so recommended avoiding. ExpectedADDs underperformed ExpectedDELETEs by 13% since then. Expected Flows remain small.

• Semiconductor Manufacturing International Corp (SMIC) (981 HK)‘s 1Q25 results were in line, while the 2Q25 guidance appears somewhat cautious.  
• The Americas continued to contribute a low-teens percentage to revenue, accounting for 12.6%, while China and Eurasia made up the remaining majority.  
• Semiconductor Manufacturing International Corp (SMIC) (981 HK)’s top priority remains its strategic focus on core business and near-term execution.

• Panache DigiLife Limited is an ICT & IoT devices design, manufacturing, distribution and services company.  
• Company’s accounting policy for non-provisioning of old receivables seems to be aggressive. Poor capital allocation resulted in fragile financial health. 
• Concentration risk with sales from single customer accounting for 55% of revenue to be major areas of concern.

• On the 27th March 2025, Domain Holdings Australia (DHG AU)  announced a $4.43/share NBIO from Costar, and subsequently entered into an exclusivity and process deed.
• Domain has now entered into a Scheme with CoStar on the same terms. Including any dividends paid. Curiously, terms were not declared “best & final” as stated in the NBIO.
• Apart from the standard Scheme vote – expected mid-August, this needs FIRB to sign off. Potential implementation late-August. Nine Entertainment Co Holdings (NEC AU) (60.1% shareholder) is supportive.

• Revenue decreased by 1.8% YoY to JPY143.2bn, with IT business revenue up 13.6% and Food business down 43.9%.
• Operating profit increased by 242.7% YoY to JPY8.9bn, driven by IT segment’s OPM rise and cost ratio decline.
• Dividend per share for FY03/25 remained JPY120, with a total payout ratio of 117.7% including treasury stock repurchase.

• This morning, the Nikkei says NTT (Nippon Telegraph & Telephone) (9432 JP) has decided, 5 years after taking Docomo private, to buy out minorities in NTT Data Corp (9613 JP). 
• NTT owns 58%. The article suggests a “30-40% premium” (¥3,900-4,200) “is likely”, with the parent spending ¥2-3trln (¥3,380-5,060) on the deal. The numbers are a bit all over the place.
• It will go limit up today to ¥3,492. A deal should be announced today after the close when NTT Data reports earnings. There’s a cool index event too.

• Swiggy (SWIGGY IN) raised around US$1.35bn in its India IPO in Nov 2024. The lockup on its pre-IPO investors is set to expire soon.
• Swiggy is a business to commerce marketplace company offering users a platform for ordering grocery and household items and food delivery, through its on-demand delivery network
• In this note, we will talk about the lockup dynamics and possible placement.

• Ant Group is considering on listing its overseas unit Ant International in Hong Kong. Ant International contributes approximately 20% to Ant Group’s total revenue.
• Ant International operates four core business lines: Alipay+ (cross-border payment platform), Antom (global merchant acquiring network), WorldFirst (remittance service), and Bettr (digital payment solution).
• Given the growing political to delist Chinese stocks from the US exchanges, there could be a greater political pressure on the Chinese government to approve Chinese IPOs in Hong Kong.

• AMD yesterday reported Q1 2025 revenues of $7.4 billion, up 36% YoY, down 3% QoQ and $300 million above the guided midpoint. Non-GAAP Gross margin was 50%, precisely as guided
• AMD forecasted current quarter revenues of $7.4 billion, flat sequentially, together with gross margin of 43% incorporating the impact of an $800 million charge related to the latest China restrictions
• Enterprise server momentum, both cloud and on premise, is a major tailwind for AMD in 2025, far more so than any traction from its Instinct Accelerators. That comes in 2026.

• 2024 Cash Dividend is NT$28, with payout ratio slightly increased to 83.76%. 2Q25 Guidance Revenue: NT$26.5–27.7bn / US$828–866mn (vs. ~US$830mn in 1Q24), Gross Margin is 37–40% and OPM is 18.5–21.5%.
• 100% of sales and cost are denominated in USD. A 1% appreciation of the  TWD implies a 0.2% decrease in net income.
• 2H25 Outlook: Visibility remains low, and tariffs continue to be the key uncertainty.

• Revenue increased 33.6% YoY to JPY5.2bn, with HENNGE One business revenue at JPY4.9bn (+35.2% YoY).
• Operating profit rose 72.6% YoY to JPY1.1bn, with a margin of 21.5% (+4.9pp YoY).
• Gross profit was JPY4.5bn (+36.8% YoY), and SG&A expenses increased to JPY3.4bn (+28.0% YoY).

• Charter Communications’ first-quarter 2025 performance indicates a balanced mix of positives and challenges.
• From a growth perspective, the company continued to assert its position as a leader in the mobile sector, adding over 500,000 Spectrum Mobile lines during the quarter.
• This growth translates to more than 2.1 million lines added over the past year, reflecting a line growth exceeding 25%.

• Cadence Design Systems, Inc. presented a robust performance in the first quarter of 2025, surpassing guidance across all major financial metrics.
• The company’s revenue grew by 23% year-over-year, with a notable 34% increase in non-GAAP EPS, prompting an upward revision of the annual financial forecast.
• This performance was primarily driven by sustained demand for Cadence’s innovative technologies and solutions.

• Orders increased 17.0% YoY to JPY16.1bn; order backlog rose 51.4% YoY to JPY21.2bn, driven by infrastructure projects.
• Cumulative Q3 sales, operating profit, recurring profit, and net income were 72.1%, 64.2%, 63.8%, and 64.4% of FY06/25 forecast.
• Cloud services sales grew 39.5% YoY to JPY2.5bn; order backlog at JPY10.9bn, up 48.4% YoY.

Datatec previously issued a trading update for FY25 confirming that both Westcon and Logicalis International continued to deliver excellent financial performances in H225, and despite generating lower gross profits year-on-year in FY25, Logicalis Latin America delivered an overall increase in financial performance. Management has now confirmed the ranges it expects to report for EPS, with underlying EPS of 30.0–31.0 cents ahead of our 27.9 cents forecast. We maintain our forecasts pending results on 27 May.

• The recent spike in Asian currencies is driving foreign institutional flows into Asian equities. Currency appreciation is usually a lead indicator of FII flows, implying that this enthusiasm may continue. 
• The markets that were sold down the most are attracting the most flows and could continue to do so. India, Taiwan and to a lesser extent, Korea qualify.
• Domestic sectors like Chinese internet, restaurant chains, athleisure; Indian private banks, consumer discretionary, hospital chains could gain. So could defensives with high dividend yields, e.g. Korea and Chinese utilities, telecom.

• TSMC’s Next Generation 2nm Node is Experiencing Unprecedented Customer Demand
• Showdown Heats Up Between Qualcomm & Mediatek’s Next Generation of Mobile Phone SoCs — And All Roads Lead to TSMC’s Process Technology
• Hyperscale Capex Is Maintained or Increased No Cuts or Postponement Capacity Constrain at AMZN GOOG

• We analysed the earning revision of component stocks of HSCEI in the past month.
• We tabulated stocks with the top impact on index’s EPS, stocks’ EPS revision, and revenue revision.
• We highlighted EPS revision on CCB, Sinopec, BOC, Petrochina, CNOOC, China Overseas, Ping An.

• 2Q25 outlook: Wafer shipments are expected to grow +3~5% QoQ, ASP is expected to increase +0~2% QoQ and Gross margin is projected at 27~29%.
• 2Q25 by platform: PMIC to see significant growth; discrete to grow in low single digits; DDIC to remain flat.
• The 2024 annual dividend policy is maintained at NT$4.5 per share.

• Apple (AAPL US) started a mild pullback after releasing its earnings on May 1st. We think this pullback may be a BUY opportunity.
• Some analysts believe the Trump administration’s tariffs will ultimately prove transitory. While near-term impacts are surely expected for Apple (AAPL US) , they’re probably short-term in nature.
• Our model suggests a potential buying opportunity in Apple (AAPL US) may be approaching. This insight outlines the tactical considerations behind that view.

• Good 1Q25, revenue +36% YoY, EPS +55%. Complicated 2-3Q ahead due to US export restrictions cutting down revenue by 1.5bn. This is a one-off. Ignoring this, underlying growth looks strong.   
• AMD is gaining share in PC and Server, incl enterprise. GPU offering is still behind Nvidia but improving with MI350 in mid-25, MI400 mid-26. MI400 should be on-par with NVDA.
• The stock is down -45% from Jan-24. Trading on low multiples versus historicals: 17x 2026 EPS or more than -1 stdev below avg. Buy!

• Zacks Small-Cap Research Note for CISO Global, Inc. (CISO)

• Zacks Small-Cap Research Note for CISO Global, Inc. (CISO)

• SPS Commerce delivered a strong performance in the first quarter of fiscal year 2025.
• The company’s revenue grew by 21% year-over-year to $181.5 million, marking its 97th consecutive quarter of revenue growth.
• Recurring revenue also saw a 23% increase, underscoring the stability and consistent demand for SPS Commerce’s solutions.

AutoStore is a structural growth story in a cyclical market. The mechanisation and automation of warehouses is a structural trend because labour in developed markets is becoming increasingly expensive, largely because the available workforce is shrinking. However, these are large capital projects and customer willingness to invest is sensitive to economic certainty and cycles. Recent tariff moves have left certainty in short supply and, as investing in new warehouse automation can be easily deferred, the impact has been obvious. Management believes it is at the bottom of an unnecessary cycle.

• Most Secondary-listed companies have announced the number of shares that underlie ADRs and are held by the ADR depositaries as of end-March (or around that time).
• There are some significant increases in the number of shares held by the ADR depositaries. That changes the free float for the stocks and consequently the estimated flows.
• NetEase (9999 HK), Trip.com Group (9961 HK), Baidu (9888 HK) and Weibo (9898 HK) will have passives buying, while NIO (9866 HK) switches to a sell.

• Q1 saw record quarterly inflows by SOUTHBOUND investors at HK$435bn, beating the previous 2021Q1 record by >HK$100bn. The first three weeks in April were HK$168bn. The next two weeks flat.
• Two weeks ago saw SOEs sold quite heavily in somewhat weaker volume. This past week saw only 3 days of SOUTHBOUND trading and saw net selling of big internet names.
• This week threatens to be quiet as well, as tariff news moves away from China for a little while, and towards foreign auto exporters, Canada, Mexico, and “trade frameworks.”

• MongoDB (MDB US) is forecasted to be deleted from Nasdaq100 on 16 May due to an index weighting of lower than 0.1% on the last day of March and April.
• Shopify (SHOP US) is the forecasted replacement. The company became eligible following its listing transfer from NYSE to Nasdaq on 31 March.
• Alnylam Pharmaceuticals (ALNY US) and eBay Inc (EBAY US) are the main addition candidates for the acquisition of Ansys Inc (ANSS US) by mid-2025 and the December 2025 review.

• TSMC: +15% Premium; Trading Near Level to Go Long the ADR Spread
• UMC: -1.8% Discount; Also Near a Level to Go Long the Spread
• CHT: -2.2% Discount; Good Level to Go Long the Spread

• On the 17th March, eftpos terminal provider Smartpay (SPY NZ/SMP AU) announced the receipt of two NBIOs
• One from Tyro (TYR AU) (@ NZ$1.00/share) and one from a third party (believed to be Shift4 (FOUR US)). Both parties were granted a limited period of commercial due diligence. 
• After Shift4 (if indeed them) bumped terms to NZ$1.20/share/A$1.12/share, it was granted exclusivity on the 2nd May. Tyro has now walked. 

• The company set terms with a F-1/A putting 10 million shares for sale at a range of $46-$50 which would value the company as high as $4.05b.
• BlackRock and funds managed by BlackRock placed a 20-percent cornerstone investment order and is on the cover of the prospectus. 
• The blueprint to getting an IPO out the door during this time is to shrink the size of the transaction, bring in a cornerstone investor and provide an attractive valuation.

• Our daily digest of news from UK Small Caps 28th April 2025 @HybridanLLP * A corporate client of Hybridan LLP ** Potential means Intention to Float (ITF) has been announced, or it is a rumour ***Arranged by type of listing and date of announcement ****Alphabetically arranged Dish of the day Admissions: Last Friday (25th April), The Smarter Web Company (AQSE:SWC), announced its first day of dealings on the on the Aquis Stock Exchange.
• The Smarter Web Company is a UK-based web design agency, specialising in creating bespoke, mobile-friendly websites and offers a range of online marketing strategies to help businesses enhance their online presence.
• Services include various web design packages, logo design, Search Engine Optimisation, animation and custom development.

• Results in line, demonstrating resilience – FY3/25 results were in line with guidance, as Simplex responded effectively in driving a notable earnings recovery in H2 FY3/25.
• Orders and backlog growth were robust, denoting high earnings visibility.
• Management provided clarity over the insurance business, which will continue as part of Financial Retail, and FY3/26 guidance points to sustained sales and earnings growth YoY in the high teens. 

• Nemetschek has partnered with Google Cloud to embed AI into its AEC/O and media software, expand global market access through digital marketplaces, and promote sustainability in design and construction workflows.   
• For Q1 2025, it reported better-than-expected revenue growth, though EBITDA was temporarily impacted by the insolvency of a payment service provider; underlying margins remain strong, and full-year guidance was reaffirmed.   
• Nemetschek remains one of Europe’s fastest-growing software firms, driven by a successful transition to subscriptions, with strong visibility through 2027–2028.

• On 2 May, Smartpay Holdings (SPY NZ) disclosed receiving a third non-binding scheme proposal from another international strategic at NZ$1.20 (A$1.12), 20% premium to the Tyro Payments (TYR AU) offer.
• Smartpay previously disclosed a NZ$1.00 cash/scrip bid from Tyro and an undisclosed offer from an international strategic (rumoured to be Shift4 Payments (FOUR US)). 
• Smartpay was susceptible to bids due to the RBA’s surcharge review, but the shareholder structure necessitates an attractive offer. The NZ$1.20 offer is attractive.

• We assume that Vanguard Intl Semiconductor (5347 TT) will see an upside in its 2Q25 outlook by a few percentage points.
• The DDIC (Display Driver IC) segment appears relatively flat, while PMIC (Power Management IC) may experience slight growth.
• Vanguard Intl Semiconductor (5347 TT) and other Taiwanese semiconductor Fabs are not subject to the 125% tariff imposed by Beijing on U.S. products. 

• SIMO beat 1Q25 EPS estimates by 20%, with strong gross margins (47.1%) driven by PCIe Gen 5 SSD controller mix and tight cost control.
• SIMO’s MonTitan confirmed as boot SSD supplier for NVIDIA’s BlueField-3 DPU, marking SIMO’s formal entry into NVIDIA-linked enterprise AI storage.
• Management maintains $1bn revenue run-rate target for 4Q25, supported by PCIe 5, UFS 4.1, and MonTitan ramps. We maintain our Structural Long rating.

• Airtasker Limited (ASX:ART) is an online marketplace for local services, connecting people and businesses who need work done with people who want to work.
• ART has reported its Q3 FY25 trading update with key RaaS KPIs all heading in the right direction.
• Another quarter of positive cash flow was achieved, resulting in a stable net cash position of $18.3m.

• I tally 49 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma.
• Four new deals discussed on Smartkarma this week: Ainsworth Game (AGI AU), Bright Smart Securities (1428 HK), Hainan Meilan International Airport (357 HK), and of course, Toyota Industries (6201 JP).
• Key updates/news took place on: PointsBet Holdings (PBH AU), Gold Road Resources (GOR AU), Dickson Concepts Intl (113 HK), Canvest Environmental Protection Group (1381 HK), and Shibaura Electronics (6957 JP).

• VeriSign Inc.’s first quarter of 2025 showed a solid performance with a 4.7% increase in revenue, reaching $402 million compared to the same period last year.
• This was bolstered by positive trends in domain registrations.
• The domain name base for .com and .net increased by 777,000 names from the end of 2024, resulting in a total of 169.8 million domain names.

• SS&C Technologies reported a commendable financial performance for the first quarter of 2025.
• Adjusted revenue reached $1.5148 billion, reflecting a notable 5.5% increase year-over-year.
• The adjusted diluted earnings per share rose by 8.3% to $1.44.

• Celestica Inc., a key player in the electronic manufacturing services sector, showcased encouraging yet complex financial dynamics in its Q1 2025 earnings report.
• The company’s financial performance exceeded expectations, with revenue reaching $2.65 billion, a year-over-year increase driven by robust demand in its Communications & Enterprise (CCS) segment.
• The company’s adjusted EPS stood at $1.20, reflecting an impressive 45% increase from the prior year.

• 2Q25 small 2% beat. Products revenue (iPhone, Mac, etc) up 3% YoY. Services up 12%. Jun-25: low- to mid-single digit revenue growth YoY (inline), 100bps hit to margins or US$900m. 
• Good effort to articulate supply chain reshuffle for products sold in US: iPhone from India, the rest from Vietnam. Beyond June, no quantification of impact on costs and demand. 
• Despite low 5-8% EPS growth, the stock is expensive due to steady Services growth and large cash returns to shareholders. Trading at 29x FY25 EPS, 27x FY26. 

• The commercialization of general purpose humanoid robots could be the most disruptive innovation that the next few decades have in store for us.

• It would be a new computing platform that would by far surpass everything that we have seen in personal and mobile computing.

• AI would be liberated from cyberspace to real space. Instead of shifting bits and bytes around, it would be moving physical objects.

• While Amazon’s 3P business usually grows faster than 1P, both 1P and 3P retail business grew at similar rate in 1Q’25.
• Ads revenue continued its momentum at 19% growth YoY which was higher than both Google and Meta.
• After growing at ~19% YoY for the last three consecutive quarters, AWS growth decelerated this quarter to 17%.

• What did hyperscalers say on Capex in March conf calls? Amazon: nothing. Google: maintained. Meta: increase. Microsoft: maintained. No Capex cuts or postponement. 
• At the opposite, Amazon and Google mention capacity constraints, revenues could be higher with more capacity. All firms mention that AI is a critical building block of future growth. 
• Financial statements show 1) improving operating margins, 2) higher capex but still higher free cash flow. Positive for NVIDIA Corp (NVDA US) and Taiwan Semiconductor (TSMC) (2330 TT) .  

• On a sum-of-the-parts basis, LION and STRZ are worth significantly more than is reflected in LGF.A’s stock price.

• At the close today, investors could buy 1 share of Lionsgate Entertainment (LGF.A) for $8.90. On May 6, that investor will receive 1.12 shares of LION and 1.12 shares of STRZ.

• I estimate LION is worth $11 and STRZ is worth $1.71. As such, it looks like there is ~60% upside

• Intel’s first-quarter results for 2025 painted a mixed picture, marked by a modest financial beat but overshadowed by weak forward guidance and deep-rooted structural challenges.
• Under the newly appointed CEO Lip-Bu Tan, who took charge just five weeks ago, the company reported adjusted earnings of $0.13 per share on revenue of $12.7 billion—both surpassing Wall Street expectations.
• Gross margins reached 39.2%, higher than the guided 36%, buoyed by stronger-than-expected sales of Xeon and Raptor Lake chips.

• Baidu is intensifying its AI initiatives with the launch of ERNIE 4.5 Turbo and ERNIE X1 Turbo, aiming to solidify its position in China’s competitive AI landscape.
• These models boast enhanced multimodal capabilities and are priced significantly lower than competitors, with ERNIE 4.5 Turbo costing just 1% of GPT-4.5’s price.
• In a strategic shift, Baidu plans to open-source ERNIE 4.5 by June 30, 2025, and has made its ERNIE Bot free for individual users.

• SK Telecom experienced the biggest cyberattack in its history in April which is likely to result in a major shakeup of its management team. 
• We estimate SK Telecom could lose 1 million+ mobile service customers. Given its ARPU of 29,355 won per month, this would represent lost annual revenue of nearly 352 billion won. 
• This massive cyberattack could cost SK Telecom more than 1 trillion won in a combination of lost revenue and additional commission/advertising necessary to attract new customers. 

• The provider of Decision Intelligence software for service operations, provided an update on trading for the year ended 31 March 2025.
• Group revenue is expected to have increased by 13% or 15% on a constant currency basis, to approximately £30.4m, reflecting upsell of the latest iterations of its Decision Intelligence software and the successful go live with several major new customers.
• SaaS revenues increased by approximately 13%, or 14% on a constant currency basis, up from 8% growth in the prior year. 

• Tyler Technologies, a leader in providing integrated software solutions for the public sector, reported its first quarter 2025 financial results revealing both strengths and challenges.
• The company achieved a 10.3% year over-year revenue growth to $565.2 million, driven by a robust increase in subscriptions revenue, which climbed by 19.7%.
• Notably, Software-as-a-Service (SaaS) revenues grew 21%, marking continuous growth in this area for 17 consecutive quarters.

• A Nikkei article today suggested Minebea Mitsumi (6479 JP) would overbid Yageo’s dramatic 20% overbid of Minebea’s early ¥4,500 overbid of Yageo’s initial ¥4,300 bid for Shibaura Electronics (6957 JP). 
• Now the news is out. MinebeaMitsumi has bid ¥5,500. Shibaura Electronics has endorsed. This is bang-in-line with the expected path. The question is now YAGEO’s overbid, expected 7 May.
• If I were YAGEO, I would wait for Shibaura’s earnings a couple of days later, then overbid by ¥100-150 and go for 35 days. There’s optionality there.

• Minebea Mitsumi (6479 JP) has revised its tender offer for Shibaura Electronics (6957 JP) to JPY 5,500, representing a 1.9% premium over Yageo Corporation (2327 TT)’s JPY 5,400 hostile offer. 
• There are factors supporting Yageo again outbidding Minebea, and Yageo calling it quits. A revised Yageo could potentially touch JPY6,000, 40% higher than its first offer.
• The shares are trading 7.1% above Minebea’s offer, factoring in a fair chunk of the upside from an ongoing bidding war. Take profits as risk/reward looks unattractive. 

• Digital advertising has surpassed the days of “Mad Men” a while ago and thanks to AI, it seems even better positioned to unlock new markets and more opportunities.
• Meta is, of course, one of the companies leading this march.
• Here are my highlights from today’s call. Daily Active People (DAP) across its Family of Apps (FOA) accelerated to 80 mn QoQ in 1Q’25.

• On April 29, Intel hosted the latest in a series of “Direct Connect” events, this time focusing on the company’s Foundry progress and plans
• They talked about “ups and downs” with 18A, seeming to lower expectations for the process node which former CEO Gelsinger “bet the company on”. Lots of emphasis on 14A instead.  
• Foundry chief Naga Chandrasekaran casually announced that the company was “walking away” from Copy Exactly and “democratizing innovation” at the fabs to fix yield, reliability, predictability and cost challenges. Wow!

• Qualcomm Inc (QCOM US) 2Q25 (March-25) spot inline with expectations, 4Q guidance inline with expectations. Revenue growth is slowing down sharply in June. Consensus expects further slowdown in 2H25. 
• QCOM is losing iPhone modem, Android is not growing in units but chips become more expensive with AI, new revenue streams (AI PC, Auto, Industrial IoT) are not well understood. 
• The result is Consensus forecasting basically no EPS growth in FY26-27 and the stock is trading at 12x EPS, almost -1 standard deviation below average PEx

• In FY03/25, the company achieved revenue of JPY2.43tn, operating profit of JPY697.3bn, and net income of JPY544.1bn.
• For FY03/26, the company projects revenue of JPY2.6tn, operating profit of JPY727.0bn, and net income of JPY566.0bn.
• The company plans to increase R&D expenses to JPY300.0bn in FY03/26, up from JPY250.0bn in FY03/25.

• Pureprofile Ltd (ASX:PPL) is a data analytics and consumer insights company underpinned by proprietary technology, servicing business decision makers in brands and media companies as well as market researchers.
• On April 30, Pureprofile reported a 16% increase in Q3 FY25 revenue to $12.7m and a 16% increase in Q3 EBITDA to $0.6m versus the previous corresponding period (pcp).
• Australia/New Zealand (ANZ) revenue grew 10% on the pcp to $6.6m while Rest of World (RoW) jumped 24% to $6.1m, or 48% of total revenue.

• FY03/25 results: Sales JPY183.1bn (+0.6% YoY), Operating profit JPY7.9bn (+3.6% YoY), Net income JPY5.1bn (-0.9% YoY).
• FY03/25 forecast: Sales JPY186.0bn (+1.6% YoY), Operating profit JPY6.0bn (-24.2% YoY), Net income JPY4.9bn (-4.5% YoY).
• Hakuto’s medium-term plan targets sustainable growth by FY03/29, with Vision 2030 and Hakuto 2028 initiatives.

Solid State finished the year strongly, including the announcement of a £19m communications order and defence activity gaining momentum. This, combined with the restructuring and cost initiatives, suggests positive momentum going into FY26. This was after the well documented weakness in industrial markets and destocking affected the year to March 2025.

• Mediatek beats in 1Q, good guidance for 2Q, but close to Consensus. Several positives in 2025: flagship smartphone gains, smartphone AI upgrades, strong WiFi and Connectivity growth, progress in Auto.
• How large is the “sizable revenue” opportunity of data center custom ASICs from 2026? Management sounds increasingly positive / confident. The stock valuations reflect this.
• The stock trades at 18.5x 2025 EPS, 15.5x 2026 EPS, not extravagant but on the high-end. If you have the stock, keep it. If you don’t, TSMC looks more interesting.  

• Wrkr Ltd (ASX:WRK) offers compliance solutions for Australian superannuation contributions and payroll including member onboarding, super payments, messaging and employee validation.
• WRK’s Q3 FY25 activities report demonstrates a continued balance of cost management (up just 3% against Q3 FY24) against lumpy cash receipts (down 6% against Q3 FY24 but up 39% on Q2 FY25) amidst continued milestone/project work, which should drive revenue in FY26.
• This quarter saw the receipt of a $328k R&D tax credit but also a record capitalised IP spend of $985k as new product development and systems integration continues.

• MediaTek beat 1Q25 EPS expectations as Smart Edge and mobile segments delivered strong sequential growth; flagship SoC traction supports improved ASP mix.
• AI remains central to strategy: NVIDIA partnership progressing — NT$1bn AI ASIC revenue targeted for 2026.
• Tariff-Driven macro caution clouds 2H outlook, but we maintain Structural Long view — AI, auto, and premium mobile SoCs drive long-term opportunity.

• 2Q25 guidance is projected to be between NT$147.2bn and NT$159.4bn (midpoint-flat QoQ), with a gross margin expected to range between 45.5% and 48.5%, and operating expenses between 27% and 31%. 
• In 2Q25, MediaTek expects mobile to be flat to slightly down, continued QoQ growth in smart edge, and QoQ growth in power ICs. 
• Regarding flagship smartphone SoCs, MediaTek remains optimistic about gaining market share and expects the ASP (average selling price) of its next-generation flagship chips to continue rising.

• The Nasdaq-100 Stock Index (NDX INDEX) stalled this week. The week is not over yet, but let’s take a closer look at our tactical model to assess short-term scenarios.
• Obviously tariffs will impact the economy but often markets can defy rationality, leading to short-term pain if we’re positioned incorrectly.
• This insight evaluates how far the rally could extend and how deep a pullback might go, this can be of interest to option desks or to anyone looking to hedge.

• Samsung Electronics (005930 KS) already released 1Q25 data, we knew it was a decent quarter on good Smartphone sales. What we didn’t know is how bad Memory was. 
• Memory revenues declined sharply -17% QoQ on poor 4.4% OP margins: loss of HBM 2/3 revenues (China ban), no HBM3E, ASP pressure for Commodity DRAM and NAND 
• Smartphone is seasonally down in 2Q and HBM3E will start very slowly. A small upside possible on pre-tariff demand but the bigger negative remains Samsung low exposure to AI growth.

• Sales increased 22.3% YoY to JPY4.3bn, with BtoB Platform Food sales rising 29.5% YoY due to cloud-based management systems.
• Operating profit surged 152.6% YoY to JPY581mn, driven by reduced data center costs and software amortization expenses.
• BtoB Platform ES segment sales grew 10.8% YoY, with increased system usage fees from digitalization and invoicing service adoption.

• Delta Taiwan delivered record 1Q25 results, driven by strong AI data center demand; EPS beat Bloomberg consensus by 8%.
• Management highlights microgrids as essential for resilient AI infrastructure amid power grid instability, and challenges keeping national power supply up with data center expansion.
• Valuation gap widens sharply: Delta Taiwan trades at 22x PER vs. 60x for Delta Thailand, despite having stronger 2025–2026E growth. Weak macroeconomic situation also makes Delta Thailand highly vulnerable.

• ASE slightly missed 1Q25 profit expectations; operating margin slipped slightly due to seasonal ATM softness and higher opex from LEAP and test investments.
• LEAP advanced packaging and AI test continue to scale; but still make up only ~6% of revenue; ASE’s exposure to vulnerable mature/legacy chip end-applications remains too high.
• We rate ASE Neutral, vulnerable to global slowdown; citing macro opacity, tariff-related pull-ins, and a non-cheap valuation relative to 2H25 growth uncertainty and risks of a market de-rating.

• 2Q25 OSAT revenue is expected to grow 9–11% QoQ, with GM up 1.4–1.8%; EMS revenue is expected to decline 10% YoY with a 1.0% YoY drop in OPM.
• 1H saw some pull-in and shift orders plus seasonal growth, but nothing is certain, including tariff and ASEH investing in US….
• Automotive remains conservative; high-end demand is stronger. Inventory correction continues for low-end products like MCUs. Overall automotive segment is expected to grow YoY.