TMT/Internet

• Q3 arrived slightly soft, but currency-neutral EBIT narrows the miss; Q4 needs a steep ramp, though much of the downside risk already appears priced in.
• Longer-Term trajectory remains solid: sustained ~25% growth and a credible path to mid-teens operating margins by FY27 as AI adoption and enterprise penetration deepen.
• Cash flow softness reflects slower conversion and continued intangible investment, but growing pains not structural issue; valuation still shows 25%+ upside on DCF.

• Samsung Elec 1P discount hinges on tech selloff cooling retail’s semi chase; setup ripe, odds high for reversion early next week.
• Dividend tax hearings may cut threshold to 35%; ~20 large‑caps (₩10T+ mkt cap) screen in FY25, Samsung included, fresh catalyst not yet priced into 1P discount.
• If tech selloff extends next week and dividend tax headlines hit, retail cools, driving Samsung Elec 1P discount to snap tighter quickly.

• AI-Driven KOSPI concentration necessitates a balanced, diversified portfolio (AI/Tech + Defensives) with a tactical hedge.
• KOSPI’s 84% YTD gain is narrowly led by Samsung and SK Hynix (45% of gains), raising concentration risk tied to the volatile global AI capex cycle.
• The strategy is built by blending high-beta AI-linked technology exposure with lower-beta insurance and industrial stocks for ballast and stability.

• Apple Inc. reported robust financial results for the fourth quarter of fiscal year 2025, showcasing an impressive performance with total revenue reaching $102.5 billion, an 8% increase from the same period last year, marking a record for the September quarter.
• The company’s services sector set an all-time revenue record with $28.8 billion, reflecting a substantial 15% growth, largely driven by strong demand across developed and emerging markets.
• Additionally, the company saw a record earning per share (EPS) of $1.85, marking another significant achievement.

• Amazon.com reported robust financial results for the third quarter of 2025, highlighting both progress and challenges across its business segments.
• Total revenue reached $180.2 billion, marking a year-over-year increase of 12% when adjusting for foreign exchange impacts.
• Operating income was reported at $17.4 billion, however, this was impacted by two significant expenses: a $2.5 billion FTC settlement and $1.8 billion in estimated severance costs.

• Capillary Technologies India Ltd (CTIL) (0611334D IN) IPO has opened for subscription. It consists of fresh issue worth INR 3.45 bn along with OFS worth INR 5.33 bn.
• Capillary is one of the rare SaaS companies having full stack offerings in customer loyalty and engagement solutions. It has a global presence and actively expanding to US and Europe. 
• While KPIs look good and company has turned around into profits, there are concerns with cash generation, overall consolidation process, increasing provision on receivables along with few governance issues.

• 4Q25 seasonal outlook? Silergy expects flat to slightly up QoQ, similar to past years.
• Silergy does see consolidation, and given its stronger financials, product breadth, and R&D capabilities, the company remains a top supplier and will continue to gain share.
• Will 1H next year be better than 2H this year?Hard to say because of Chinese New Year seasonality.We expect YoY growth, but not strong yet.

• AXT is a key manufacturer of specialty compound semiconductor substrates (InP, GaAs, Ge), which are critical for high-performance applications where silicon is inadequate, such as 5G, data centers, and AI.
• The company is currently navigating a cyclical downturn, reflected in recent financial losses and negative cash flow. However, recent quarterly results suggest a potential recovery, driven by strong demand for Indium Phosphide (InP) substrates used in data center and AI applications.
• Significant geopolitical risk exists due to the company’s reliance on its manufacturing facilities in China and the associated export permit requirements, which have previously caused revenue delays.

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• In 1H FY03/26, revenue rose 12.9% YoY to JPY632mn, with gross profit increasing 73.3% YoY to JPY270mn.
• Laser Device business revenue grew 10.8% YoY to JPY579mn, with operating profit rising 34.9% YoY to JPY98mn.
• Visual Information Device business revenue increased 43.2% YoY to JPY52mn, reducing operating loss to JPY100mn from JPY223mn.

• Digital Information Technology is a well-established Japanese IT services firm demonstrating a consistent and impressive track record of double-digit growth in revenue, net income, and dividends, capitalizing on Japan’s digital transformation trend.
• The company operates through two primary segments: a comprehensive Software Development arm, which includes business solutions, embedded systems, and cybersecurity products, and a System Sales segment focused on SMEs, providing a diversified revenue stream.
• Supported by a robust domestic IT market projected to grow at a CAGR of approximately 10-11%, the company is well-positioned to benefit from strong government initiatives and increasing corporate investment in digitalization, cloud adoption, and cybersecurity.

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• The revenue growth accelerated for the fourth quarter in 3Q25.
• In 3Q25, the gross margins of all business lines improved year over year.
• Tencent’s operating margin had improved year over year for thirteen quarters.

• There could be up to 7 adds and 4 deletes for the CSI All Share Real Estate Sector Index in December.
• Estimated one-way turnover is 3.8% at the rebalance leading to a round-trip trade of CNY 535m. There are a couple of stocks with over 0.5x ADV to trade.
• The forecast deletes have outperformed the forecast adds over the last 2 months and this is an attractive entry point as we near announcement date.

• November’s seasonal strength extends into the U.S. Thanksgiving period, where macro markets have tended to post positive returns.
• Despite the positive averages, dispersion in returns remains wide, reminding traders that seasonality is no guarantee.
• Positive seasonals can align with favorable trading setups, but timing and risk management remain key.

• NVIDIA Corporation’s recent earnings for the second quarter of fiscal 2026 highlighted a record quarter in terms of total revenue, driven by widespread adoption of its comprehensive product suite across various sectors.
• The company reported a total revenue of $46.7 billion, surpassing its expectations with substantial growth noted in its data center segment, which increased by 56% year-over-year.
• The rollout of new technology, including the Blackwell platform and GB300 systems, was cited as a key driver of this growth, facilitating NVIDIA’s expansion in the AI infrastructure space.

• EnjoyGo Technology (ENJG HK) (EGT) is looking to raise at least US$100m in its upcoming Hong Kong IPO. The deal will be run by CICC and Guotai Junan.
• EGT, founded by automotive giant, SAIC Motor, is an all-scenario smart mobility platform in China, offering one-stop services covering ride-hailing, vehicle leasing, vehicle sales and Robotaxi services.
• According to Frost & Sullivan in 2024, EGT ranked fifth among ride-hailing platforms in China in gross transaction value and second among ride-hailing platforms in Shanghai in completed order volume.

• Revenue in 3Q25 was 7.8% higher than in 2Q25, in line with stronger seasonal demand. GM: 22.0% in 3Q25, compared with 20.4% in 2Q25 and 20.5% in 3Q24.
• The Company expects: Revenue Flat to up 2% quarter-over-quarter (QoQ). Gross Margin: Between 18% and 20%.
• SMIC’s stock price has risen 160.7% year-to-date in 2025, outperforming Taiwan Semiconductor (TSMC) – ADR (TSM US) at 44.2% and United Microelectron Sp Adr (UMC US) at 10.8%.

• Twilio’s third-quarter results for 2025 reveal a mix of strong performance metrics and ongoing strategic advancements that could impact investors’ perspectives on the company.
• The company reported a record $1.3 billion in revenue, marking a 15% increase year-over-year, and $235 million in non-GAAP income from operations, both above expectations.
• This translates to a non-GAAP operating margin of 18%, albeit with a slight sequential improvement.

• Wasion Group is a leading Chinese provider of smart metering and energy efficiency solutions, well-positioned to benefit from domestic and global grid modernization trends.
• The company is experiencing accelerated growth, driven by China’s ‘dual carbon’ policy, strong investment in smart grids by state-owned utilities, and expansion into higher-growth areas like smart water/gas metering and international markets.
• Key risks include high customer concentration with Chinese state-owned utilities, potential for margin pressure from intense competition, and reliance on government policy direction.

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• Towa holds a dominant global market share in semiconductor molding equipment, a critical step in the chip manufacturing process. Its technological leadership, particularly in compression molding for high-end chips, positions it to capitalize on long-term growth trends.
• The company is a key beneficiary of the secular growth in artificial intelligence (AI), high-performance computing (HPC), and electric vehicles (EVs). These applications require advanced semiconductor packaging, driving demand for Towa’s specialized equipment.
• Financial performance has been robust, with significant revenue and operating profit growth. The company has a long-term vision, “TOWA Vision 2032,”targeting substantial sales growth and improved profitability, supported by strategic investments in R&D and production capacity.

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• Freee reported 1QFY06/2026 results today. 1Q revenues increased 32.1% YoY to ¥9.7bn with an Adj. OPM of ¥690m (vs ¥480m in 1QFY0/2025). Both revenue and GAAP OP beat consensus.
• Freee KK (4478 JP) ’s shares had a sell-off following its 4QFY06/2025 earnings announcement which saw the company breaking away from its recent trend of consecutive quarterly operating profits.
• As we highlighted in our previous insight, 4Q decline was only a temporary setback as the company’s profitability has bounced back and we expect earnings momentum to continue.

• Hynix tagged L2: cash‑only, no margin. >40% two‑day rip triggers KRX halt. L2 caps distort tape; Square’s Oct 27–Nov 10 run showed the messy playbook.
• Hynix L2 review: five >200% YoY prints since Nov 4, but no fresh 15‑day high—₩620k from Nov 3 still the cap, yesterday stalled just below.
• Break above ₩620k likely triggers L2, leverage caps, volatile tape, Square outperformance; hold below into Monday kills L2 risk, keeps Hynix’s relative bid with retail still piling in.

• There could be 4 constituent changes for the Yuanta/P-Shares Taiwan Top 50 ETF in December as positioning for buying by one set of index trackers pushes stocks into other indices.
• There will be passive inflows in some of the forecast adds week after next and the flows from these index trackers will come a few weeks later.
• With large AUMs tracking the dividend indices, stocks that have moved up a lot now have low dividend yields and there could be opposite flows from those index trackers.

• Groww (1573648D IN) raised around US$747m in its India IPO. Groww, officially called Billionbrains Garage Ventures, is a direct-to-customer digital investment platform providing multiple financial products and services.
• With Groww, customers can invest and trade in stocks (including via IPOs), derivatives, bonds, mutual funds and other products. Customers can also avail margin trading facility and personal loans.
• We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading dynamics.

• There could be one change for the CNI Semiconductor Chips Index with Verisilicon Microelectronics S (688521 CH) replacing Tianshui Huatian Technology Co, Ltd. (002185 CH). 
• Passive trackers will need to buy 0.5x ADV in Verisilicon Microelectronics S (688521 CH) and sell 0.4x ADV in Tianshui Huatian Technology Co, Ltd. (002185 CH). 
• There will be large selling in Cambricon Technologies Lt (688256 CH) due to capping while there will be smaller inflows for the other index constituents.

• Fractal Analytics Ltd (2453623D IN) is looking to raise US$560m in its upcoming India IPO.
• Fractal Analytics Limited (FAL) is an enterprise AI company which supports large global enterprises with data-driven insights and assists them in their decision making through its end-to-end AI solutions.
• In this note, we look at the company’s past performance.

• Softbank Group (9984 JP) is swinging wildly. On Nov 11, the stock sank -13% after it said it had sold its entire stake in NVIDIA (NVDA US)  for $5.83 billion.
• The stock also posted record Q2 earnings on Nov 12, but closed the day down -3.46% (after a strong rally from the 21k bottom). Most gains come from OpenAI investment.
• For sure it’s not easy to hold this stock at the moment, this insight will analyze the next 2-3 weeks’ outlook, support and resistance, according to our quantitative model.

• AMD achieved unprecedented revenue of $9.2 billion in Q3 2025, a 36% YoY growth driven despite margin contraction in the data centre segment.
• Despite record data centre revenue of $4.3 billion, the uplift was carried by fifth-gen EPYC server CPUs rather than Instinct GPUs.
• Multi-Year GPU commitments (from OpenAI to Oracle) strengthen the AI narrative without near-term numbers; Q4 guidance implies just 4% sequential growth, underscoring a digestion phase before the MI400 ramp.

• Atlassian Corporation Plc reported strong financial performance for the first quarter of fiscal year 2026, achieving total revenue growth of 21% year-over-year, amounting to $1.4 billion.
• A significant contributor to this growth was their cloud revenue, which saw a 26% increase to $998 million.
• Additionally, the company’s remaining performance obligations (RPO) grew impressively by 42% to $3.3 billion.

• The US Senate passed a temporary funding measure after a 60-40 vote yesterday, backed by eight centrist Democrats.
• The Bill will still require approval from the House and the signature of President Donald Trump. Mr Trump said yesterday that the US was “getting close” to a trade deal with India.
• US Treasury Secretary Scott Bessent downplayed concerns over high costs for consumers under the Trump administration, saying that it had inherited elevated price levels from the Biden administration, which he described as the worst in the past 40-50 years. 

• Despite macro challenges, KPIT delivered a decent Q2FY26 and is on track to post a much better H2FY26, led by reducing uncertainty and improving demand environment.
• More importantly, KPIT has been adding select capabilities that have been pivotal to building its differentiation and competitiveness. Its approach to move to solutions vs services has been yielding fruition.
• Deal wins came in strong in Q2FY26 at $232mm, well above the typical $150mm+ run-rate. Additionally, KPIT also won a mega $100mm+ deal.

• Softbank Group (9984 JP)  reported a record H1 net income of ¥2.9 trillion, driven principally by a USD 14.6 billion fair-value gain from its OpenAI investment and Rights to invest.
• The Group fully exited its USD 2.9 billion NVIDIA Corp (NVDA US) stake in October, realizing gross gains of USD 2.9 billion on sale proceeds of USD 5.8 billion.
• It also sold partial stakes in T-Mobile for USD 9.2 billion and Deutsche Telekom for USD 2.4 billion even as it raised its investment target in OpenAI to USD34.7 Bn.

• There could be 3 constituent changes for the iShares China Large-Cap (FXI) (FXI US) ETF in December. That could easily increase to 4.
• Two of the forecast inclusions will also have inflows from the FGlobal Index at the same time, increasing the impact. The third is a potential HSCEI INDEX add in December.
• The HA premiums for CATL (3750 HK) and Jiangsu Hengrui (1276 HK) have dropped ahead of lock-up expiry and there could be premium expansion closer to index/ETF inclusion.

• There could be 1 constituent change for the STAR Chip Index at the December rebalance. There will also be a few capping changes.
• Estimated one-way turnover is 2.3% resulting in a round-trip trade of CNY 2.5bn (US$352m). Passives need to trade between 0.3-0.4x ADV in the potential changes.
• The forecast add and delete will have same-way flows from passive trackers of other indices and that will increase the impact on the stocks.

• Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
• Japan Business Systems (5036 JP) and Orion Breweries (409A JP) were included in the TOPIX index at the end of October 2025. 
• Japan Eyewear Holdings (5889 JP), FIT EASY (212A JP), and Tekscend Photomask (429A JP) will be included in the TOPIX index at the end of November 2025.

• In this insight, we provide reasoning behind the clear recent outperformance of Korean preferred shares versus common shares.
• Among the 10 pairs, nine of them have preferred shares outperforming common shares in the past five days.
• One of the main reasons why the preferred shares have recently outperformed their common counterparts is because of the expectation of the higher probability of lowering tax on dividends.

• With the review period complete, we forecast 10 changes for the ChiNext Index (SZ399006 INDEX) and 5 changes for the ChiNext 50 Index in December.
• The largest flows will be in 2 stocks that are forecast adds for both indices. There are 14 stocks with over 0.5x ADV to trade from passive trackers.
• The forecast adds outperformed the forecast deletes from June to August, but there has been significant underperformance since then. Outperformance could resume as positioning kicks in prior to announcement.

• Megaport Ltd (MP1 AU) is looking to raise around US$131m via a fully underwritten primary placement.
• The company will use the proceeds to fund the acquisition of Latitude.sh and accelerate its network expansion into India.
• In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

• We like GDS holdings, a high-beta play on Asia data center market, on the back of strong AI and hyperscale cloud infra growth across Asia
• GDS is a high beta play through 3 ways:  flexible capital deployment, high velocity AI growth, as well as diversification
• We think AI growth and utilization may surprise on the upside.  Also, establishment of a C-REIT platform will enable asset recycling at a high multiple

• Monolithic Power Systems Inc. (“the company”) in its third quarter of 2025, reported a banner quarter, achieving record revenue levels of $737.2 million, marking sequential growth of 10.9% and an 18.9% increase from the same period in the prior year.
• This outcome underscores the efficacy of their diversified market approach and strategic innovations aimed at addressing specific customer needs across a variety of segments.
• On a positive note, the company has demonstrated a robust capacity for growth, amplified by its successful penetration into multiple market segments.

• TrueCar has signed a definitive agreement to be acquired by Fair Holdings for $2.55 per share in cash.
• The acquisition deal is 72% funded, with Fair Holdings needing to raise an additional $60 million.
• TrueCar’s past legal issues are unlikely to impact Fair’s fundraising efforts for the acquisition.

• Today after the close, KKR announced a deal whereby they and founder OKUBO Izumi-san would take Forum Engineering Inc (7088 JP) private in an LBO. 
• The process of this deal ticks most all of the “bad process” boxes but the price is pretty good.
• 52% is locked in. Insiders and cross-holders appear to own another 15-18%. This looks like a done deal to me. Money comes 30 December.

• The HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.
• The official index changes and indicative weights for the December 2025 index rebal event will be announced publicly after the close on Friday 21st November 2025.
• We continue to expect one index change for December 2025 and we estimate there to be capping flows of ~US$1.9bn one-way.

• Forum Engineering Inc (7088 JP) has recommended a tender offer from KKR & Co (KKR US) at JPY1,710, a 32.6% premium to the last close price.
• The offer is arguably light due to a lack of an auction and is below the midpoint of the target IFA DCF valuation range. 
• However, the offer is attractive compared to precedent transactions, peer multiples and represents an all-time high. The large number of cross-holders will help meet the required tendering rate.

• The Hang Seng Internet & IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).
• We expect one index change in December 2025 translating to capping flows of US$530mn one-way.
• We also expect seven index changes for the next semiannual index review which will take place in March 2026.

• The review period for the December rebalance of the CSI All Share Semiconductor Index ended 31 October. The changes should be announced on 28 November and implemented on 12 December.
• We forecast 3 adds and 6 deletes for the index with a one-way turnover of 1.4% and a round-trip trade of CNY 609m (US$85m).
• The forecast adds have outperformed the forecast deletes over the last few weeks and stocks that have same-way flows from other index trackers could exhibit higher volatility near-term.

• Nvidia Pushes TSMC for More Capacity as AI Chip Demand Surges
• Apple Expands Its Satellite Ambitions for iPhones Beyond Just Emergencies — A Step Towards Disintermediating Telcos?
• Nvidia’s International HQ in Taipei Deal Clears Final Hurdle — Boost for Taiwan 2026E-2027E

• Navan (NAVN US) went public on 30 October 2025 right before the December 2025 cut-off for a US IPO index addition with a current market cap of $4.5bn.
• Inclusion in US indices is expected in December 2025, as the security meets US eligibility criteria before the lock-up expiry.
• Inclusion in Global indices is expected in February 2026, prior to lock-up expiry, and September 2026 following lock-up expiry.

• BILL Holdings shares have bottomed out near $40 per share after Starboard Value and Elliott Management built large stakes in the American SMB back-office pioneer.
• BILL Holding shares significantly underperformed in 2025 with shares down ~44% over the year versus a 21% gain on the Nasdaq.
• I see further room for upside on potential launching new intelligent AI agents, partnerships with software providers, disciplined expense management and operating efficiency.

• Upwork is strategically pivoting to higher-value enterprise clients and leveraging Artificial Intelligence (AI) to drive growth, which is translating into improved profitability and strong cash flow generation.
• The company operates in the rapidly expanding freelance platform market, benefiting from secular tailwinds such as the shift to remote work and the increasing adoption of flexible talent solutions by businesses globally.
• While facing intense competition and macroeconomic sensitivity, Upwork’s established two-sided network of freelancers and clients provides a significant competitive advantage, though its ability to consistently translate this into high returns is still developing.

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• Orders increased 7.6% YoY to JPY66.5bn, while order backlog rose 7.9% YoY to JPY47.5bn.
• Operating profit declined 9.4% YoY to JPY1.2bn, with a gross profit of JPY7.4bn and GPM of 14.1%.
• Nihon Denkei’s earnings forecast for FY03/26 includes sales of JPY124.0bn and net income of JPY3.0bn.

• Following the methodology update for the HSIII Index, there could be up to 5 constituent changes in December.
• Estimated one-way turnover is 12.8% and that will result in a round-trip trade of HK$9.8bn (US$1.25bn).
• Xiaomi (1810 HK) is the biggest beneficiary of the new methodology while there will be large funding outflows for a lot of the current index constituents.

• There could be 12 changes at the December rebalance with the Information Technology sector gaining 2 index spots and a smaller number of changes in the other sectors.
• We estimate one-way turnover of 2.7% at the rebalance leading to a round-trip trade of CNY 69.8bn (US$9.8bn). There are 8 stocks with over 2x ADV to trade.
• The forecast adds have outperformed the CSI 300 Index over the last 5 months while the forecast deletes have underperformed the index.

• In mid-September, global index provider M _ _ _ announced that they were conducting an index consultation on Digital Asset Treasury Cos. I wrote about it here.
• My recommended short at the time is down 30%, despite announcing a large buyback program. Others have lost significant premium vs underlying digital assets. 
• The same index provider expanded their list of affected names on 29 Oct. And a DIFFERENT Index provider this week added DATCOs to a US Advisory Panel Meeting Agenda Wednesday.

• Just Dial is a dominant player in India’s local search market, boasting a vast database of listings and a strong brand recall built over two decades. The company is currently in a growth phase, evidenced by a significant 102.04% 3-year CAGR in net income.
• The strategic acquisition of a majority stake by Reliance Retail Ventures Ltd. provides substantial synergistic opportunities, access to capital, and integration into a larger digital ecosystem, which is expected to accelerate the growth of its B2B platform, JD Mart.
• Despite strong financial performance, the company faces intense competition from Google’s local search offerings and various specialized vertical players, which poses a significant threat to its market share and pricing power. The company’s future success hinges on its ability to innovate and effectively monetize its new ventures.

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• Welcome to Curator’s Cut — a fortnightly roundup of standout themes from the 1,500+ insights published on Smartkarma. 
• In this cut, we revisit memory stocks’ stellar year, unpack results from the best pure-play gaming franchise, and spotlight airline stocks poised for lift-off.
• Want to dig deeper? Comment or message with the themes you’d like to see highlighted next.

• Context: Some of Hong Kong’s largest and most prominent companies will report in the coming days, representing 20% of the Hang Seng Index (HSI INDEX) 
• Highlight: This Insight quantifies option-implied swings which serve as a gauge for post-earnings reactions.
• Why Read: Prepare for a busy earnings week by understanding where single-stock and broader market volatility may be elevated.

• Cognex Corporation reported strong financial results for the third quarter of 2025, showcasing a solid strategic direction and improved operational efficiencies.
• The company’s focus on AI technology for industrial machine vision is evident in its performance and the introduction of innovative products like the SLX, aimed at enhancing logistics applications.
• Positive aspects from the results include achieving double-digit revenue growth and reaching the highest adjusted EBITDA margin since Q2 of 2023.

• Advantest’s updated guidance and MTP3 targets confirm its dominant, long-term growth trajectory as a key supplier for the high-performance computing and AI semiconductor supply chain.
• Despite a strong structural growth story, the stock faces near-term headwinds from a sequential decline in Q2 operating income and an elevated valuation that reflects peak market optimism.
• We suggest a tactical adjustment to vega exposure due to market dynamics, recommending a strategy to monetize the heightened implied and realized volatility following the strong earnings report.

• EchoStar’s recently amended agreement to sell its unpaired AWS-3 spectrum licenses to SpaceX for $2.6 billion in SpaceX stock represents a pivotal shift in its operational and strategic trajectory.
• Building on a previous September deal where EchoStar committed to transferring AWS-4 and H-block licenses to SpaceX for up to $17 billion (half cash, half stock), this new AWS-3 transaction strengthens both firms’ long-term ambitions.
• For EchoStar, this move not only unlocks immediate financial runway and positions it to operate more flexibly but also furthers its transformation from a spectrum-heavy, capital-intensive business into a leaner, investment-focused entity.

• While approximately 80% of pair trades play out according to plan, a small subset of trades fails to produce a trade close signal within the expected timeframe.
• This Insight investigates the phenomenon of parameter drift and how to manage its adverse effects.
• Analyzing challenging trades provides valuable insights into model behavior, enhancing both risk management and preparedness for future market shifts.

• Pine Labs is a fintech company supporting digitization of commerce through digital payments and issuing solutions for merchants, consumer brands and enterprises, and financial institutions.
• While the company has been growing in line with peers, its focus on enterprise customers and subscription pricing stands out, while peers have focused on merchants with a %-fee model.
• IPO priced at sharp discount to expectations ($2.5bn vs $6bn), which is fair given changing business/industry dynamics. Pending RBI investigation and potential selling from early investors are other near-term concerns.

• NEC and Siemens plan to develop an automated robot teaching system for faster set-up and more efficient operation of production lines incorporating multiple robots.
• NEC’s FY Mar-26 guidance raised on strong 1H results. BluStellar, which includes digital twins for robot teaching, grew faster than expected.  
• Aerospace/Defense led sales growth and followed BluStellar in operating profit. Improving product mix and rising Japanese defense budget point to growing long-term potential.

• Macnica is a leading Japanese technology distributor specializing in semiconductors and network equipment, well-positioned to capitalize on long-term growth in AI, IoT, and automotive sectors.
• The company is strategically shifting towards a higher-margin ‘Services & Solutions’ model, expanding beyond traditional distribution to include proprietary products and cybersecurity services.
• While facing near-term headwinds from semiconductor market cyclicality and margin pressure, Macnica maintains a strong balance sheet, attractive dividend yield, and a valuation that appears reasonable compared to global peers.

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• TSMC: +21.8% Premium; Wait for Lower Premium Before Fresh Long
• UMC: +2.2% Premium; Good Level to Short the ADR Premium
• CHT: -2.0% Discount; Near Level to Go Long the ADR Spread

• Bitfarms is a vertically integrated Bitcoin mining company aggressively expanding its operational footprint in North America and diversifying into High-Performance Computing (HPC) and AI infrastructure to create new, stable revenue streams.
• The company’s strategy hinges on leveraging low-cost, primarily renewable energy sources to maintain competitiveness in a post-halving environment, where operational efficiency is paramount for profitability.
• Significant financial risks exist, including a history of net losses, high stock volatility, and execution risk associated with its capital-intensive pivot to the AI/HPC sector, alongside its inherent exposure to the volatile price of Bitcoin.

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• Glosel is an established Japanese electronics distributor with strong ties to key suppliers like Renesas, positioned to benefit from positive industry tailwinds in automotive and industrial sectors.
• The company exhibits a high-risk financial profile, characterized by strong three-year earnings growth but severely negative operating and free cash flow, leading to the elimination of its dividend in FY24.
• While valuation appears reasonable on a Price-to-Book basis, the persistent cash burn, volatile profitability, and intense competitive landscape present significant uncertainty for investors.

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• Shutterstock is strategically pivoting towards generative AI and data services to counter the secular threats to its core stock content business, a move critical for future growth but with an uncertain payoff.
• While recent acquisitions like Envato are boosting subscriber numbers and revenue, organic growth in the core content segment is declining, and margins are under pressure from a shifting business mix and competitive intensity.
• The company’s strong dividend yield and high momentum score reflect shareholder returns and recent market cap growth, but these are juxtaposed against a challenging long-term decline in net income and cash flow, indicating a high-risk, high-reward transition period.

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• TSMC’s advanced-node wafer costs are rising sharply, with 2nm pricing now 50% above 3nm and multi-year price hikes expected; margin pressures likely for fabless players like Qualcomm, MediaTek, and AMD.
• U.S. fab expansion eroding TSMC’s cost advantage; production reportedly 30–50% more expensive than in Taiwan. This opens the door for Intel and Samsung as geopolitical and cost dynamics shift.
• Presently, TSMC remains irreplaceable in yield and process leadership, but one key moat may no longer be unchallenged; foundry competition to reshape over the next three years.

• EQT appears to be focused on IRR, prioritizing integration over equity; TOB looks low-return, rights issue chatter spooked markets today, so TOB-driven positioning isn’t realistic near term.
• EQT also faces risks: FSS cap raise approval and a relatively light 34.85% stake limiting exit flexibility. Still, there’s a tactical angle in play.
• EQT skipping TOB, but stealthy on-screen buys could spark a flow bounce; local market still eyes short-term setup trade on gradual stake-building.

• Pine Labs is now looking to raise up to US$450m in its upcoming India IPO.
• 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.
• We have looked at the company’s past performance in our earlier notes. In this note we talk about the RHP updates and provide our thoughts on valuations.

• CMTX finalized its IPO price at 60,500, the high end of the IPO price range. The book building process saw participation from 2,423 institutions. Demand ratio was 756.19 to 1. 
• Our base case valuation of CMTX is implied market cap of 1.0 trillion won or 106,847 won per share (65% higher than the IPO price). 
• Given the excellent upside, we have a Positive View of this IPO. The 71.8% shares that are under lock-up periods is high and this suggests a very bullish sign. 

• Microsoft reported a robust financial performance for its fiscal year 2026 first quarter, underscoring its leadership in the burgeoning cloud and AI sectors.
• The company’s revenue reached $77.7 billion, an 18% increase from the previous year, driven significantly by Microsoft Cloud, which generated $49.1 billion, up 26% year-over-year.
• This growth was attributed to strong demand for Azure and AI-driven solutions, particularly through strategic partnerships like that with OpenAI.

• Markets steadied in North America suggesting a firmer open for Hong Kong stock on Monday.
• Hong Kong market breadth improved notably, suggesting broader participation despite uneven performance across sectors.
• Option activity eased slightly, though Call demand remained steady relative to overall volume.

• WT Microelectronics (3036 TT) is looking to raise up to US$450m in its upcoming global depository receipts offering. The firm is also looking to raise another US$350m via convertible bonds.
• In mid Oct 2025, WT Micro announced its board’s resolution to issue between 65-90m common shares via a GDR offering.
• Similar to previous GDR listings, the deal is a long drawn out process with the firm required to jump through a number of board/shareholder/regulatory approval loops.

• Meta Platforms, Inc. recently reported its financial performance for the third quarter of 2025.
• The company showcased robust user engagement across its suite of applications, with 3.5 billion people using one or more Meta apps daily.
• Instagram reported an impressive 3 billion monthly active users, marking a significant milestone.

• Cognizant Technology Solutions recently reported their Q3 2025 results, showcasing significant performance that suggests both enhancements in their operational capabilities and efforts to position themselves within the burgeoning AI landscape.
• Revenue for the quarter reached $5.4 billion, reflecting a 6.5% increase year-over-year in constant currency.
• This growth marks the fifth consecutive quarter of organic revenue increase, highlighting the company’s robust performance across multiple sectors and geographies.

• eBay’s third-quarter financial performance for 2025 highlighted a balance of strengths and areas for potential improvement.
• The company’s gross merchandise volume (GMV) grew by 8% year-over-year, amounting to $20.1 billion, and revenue increased by over 8% to $2.82 billion.
• Furthermore, non-GAAP earnings per share rose over 14% to $1.36.

• In the past several days, one of the biggest news splash in the global financial markets has been Michael Burry taking huge bearish positions on Palantir and NVIDIA.
• Prices of Palantir and Nvidia are down 6.3% and 3.6%, respectively from 31 October to 6 November. Nikkei and KOSPI are down 2.9% and 2%, respectively in the same period.
• The risks surrounding CIRCULAR DEALMAKING involving OpenAI have become even more significant.  Amid these uncertainties, Michael Burry is taking action with his uber bearish positions on Nvidia and Palantir. 

• Kospi’s rally has extended seven months and now shows signs of fatigue, trading with speculative assets and now sharply diverging.
• Implied volatility is elevated, with short-term measures above the 90th percentile on multiple lookbacks.
• We recommend an option trade and hedge given the current setup.

• Northsand (446A JP) aims to raise around US$121m in its Japan IPO.
• Northsand is a consulting firm that provides both IT and business consulting services. Established in 2015, it helps organizations improve efficiency, modernize operations, and achieve sustainable growth.
• In our previous note, we looked at its past performance. In this note, we will talk about valuations.

• Improving policy visibility on chips and geopolitics restores confidence in China’s AI infrastructure outlook.
• Explosive AI-token growth is driving sustained hyperscaler build cycles and stronger IDC order pipelines.
• GDS’s balanced China and DayOne portfolio supports double digit EBITDA CAGR; catalysts include new orders, C-REIT and DayOne IPO, implying 60-100% re-rating potential.

• CoStar’s revenue grew 20% year over year, with strong growth in residential segments such as Apartments.com and Homes.com
• Elevated sales and marketing expenses account for 50% of revenue, raising questions about sustainable growth and margin levels
• Management is optimistic about gaining momentum and investing in two-sided marketplace platform for future success, but concerns remain about long-term profitability and valuation metrics.

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

• Since the last rebalancing of our portfolio on 5th September, it has returned 13.5% vs 9.5% from MSCI-Asia-ex-Japan. Since inception (15th May), our portfolio has appreciated 20.1% vs MXASJ’s 18.6%.
• Six stocks, SK Hynix, TSMC, Samsung Electronics, Alibaba, China Hongqiao, Tencent, contributed almost the entire return of our portfolio. Overweight on Korea drove more than half the portfolio’s return.
• We turn more selective on Chinese discretionary consumption and step into the Korean defense sector. We exclude Anta Sports and Mediatek and include Hyundai Rotem and Hon Hai Precision.

• Pastel Ltd, a subsidiary of Singapore Telecommunications (Singtel) is looking to raise up to US$1.2bn via selling a 0.8% stake in Bharti Airtel (BHARTI IN).
• There have been three US$1bn+ selldowns already in 2025, twice by Sunil Mittal-led promoter entity Indian Continental Investment (ICI) and once by Singtel, which last sold in May 2025.
• In this note, we run the deal through our ECM framework and comment on deal dynamics.

• oRo is a specialized provider of cloud-based ERP and digital marketing solutions, well-positioned to capitalize on Japan’s accelerated digital transformation.
• The company operates through two core segments: a high-growth, high-margin Cloud Solutions business centered on its proprietary ‘ZAC’ ERP for knowledge-based industries, and a Marketing Communication business offering digital strategy services.
• Sustained double-digit revenue and net income growth, coupled with a strong balance sheet, is balanced by intense competition in the IT services sector and recent performance headwinds in the marketing segment.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Revenue reached JPY656.8bn (+27.0% YoY), with IT Infrastructure Distribution segment revenue at JPY649.7bn (+27.1% YoY).
• Operating profit was JPY22.4bn (+65.9% YoY), with IT Infrastructure Distribution segment profit at JPY21.8bn (+65.9% YoY).
• Industrial Machinery segment revenue increased 12.8% YoY to JPY7.1bn, with operating profit at JPY585mn (+68.1% YoY).

• 4Q25 Guidance: Revenue NT$22–23bn (declined 4.9% QQ); Entering traditional low season. Gross Margin: 35–38%; Operating Margin: 14.5–17.5%.
• AI-Integrated products currently ~20% of SoC revenue and growing. Image SoC / New Camera Trends: New AI Vlog cameras seeing positive demand. 
• Key 2026 factors: FX, gold price, raw materials (KGD, substrate) supply.

• Pony.ai has finalized the Hong Kong public offering price at HK$139 per share and it expects to raise HK$6.71 billion (US$860 million) from its planned secondary listing in Hong Kong. 
• Our base case valuation of Pony.Ai is HK$178.2 per share over the next 6-12 months, which represents 28% higher than the Hong Kong public offering price. 
• Given the solid upside, we have a Positive View of Pony.ai. Despite our Positive view, there have been increasing concerns about the overstretched valuations of major AI/tech related companies globally.

• Pony AI (PONY US) raised around US$860m and WeRide (WRD US) raised around US$310m in their HK Secondary offering.
• We have looked at the deal dynamics in our previous note.
• In this note, we talk about the trading dynamics for the two deals.

• In Q126, Microsoft recorded $4.1 billion in net losses from investments in OpenAI, up from $688 million in the year ago quarter.
• The newly updated partnership between Microsoft and OpenAI has many clauses contingent on when (not if) AGI gets declared. Since AGI has no actual definition, an expert panel will decide. 
• Sam Altman dreams of an OpenAI IPO so that detractors can be lured into shorting the stock and getting burned in the process. Revenue growth is a touchy subject, apparently

• Groww is India’s largest stockbroker with 13mn active users. It is progressing towards a full-stack investment platform, expecting to cross-sell multiple financial products to over 18mn users on its platform.
• It is aggressively expanding into lending (MTF, LAS) and has recently acquired ‘Fisdom’ to offer premiumised wealth solutions (AIF, insurance, tax-filing). It also owns Groww AMC, offering debt/equity/Fixed income products.
• At 33 times FY25 earnings, IPO is priced reasonably considering its deep penetration in the market (customers from 98% Pincodes) and strong ARPU and profitability supported by decent retention metrics.

• All Winner Technology (300458 CH) could replace StarPower Semiconductor (603290 CH) in the CES China Semiconductor Chips Index at the close of trading on 12 December.
• Cambricon Technologies Lt (688256 CH)‘s index weight is currently higher than 10% and the stock will be capped to limit its index weight.   
• The forecast add has outperformed the forecast delete over the last year and recent market volatility (and valuations) has narrowed the gap.

• Info -Tech is led by Mr. Ricky Lim, Founder and Chairman, who started the company in 2007 with Mr. Babu Dilip, Co -founder and Chief Executive Officer.
• The business remains founder -led, with senior management comprising long -serving functional heads across product, technology, and sales.
• Ownership is concentrated among the founder and key management, aligning incentives with long – term growth and profitability.

• Zebra Technologies reported its third-quarter 2025 results, surpassing its initial outlook.
• The company posted $1.3 billion in sales, representing a year-on-year increase of 5%.
• Adjusted EBITDA margin improved slightly by 20 basis points to 21.6%, and non-GAAP diluted EPS rose by 11% to $3.88.

• Good 3Q25, good 4Q guidance, optimism that the Server CPU market is growing faster, new GPU MI400 (2H26) will re-accelerate growth. Plus some price increase or higher ASP. Not controversial.
• More controversial is Consensus expecting OP margin to jump from 24% (2025) to 31% (2027). There will be leverage as Data Center AI revenues grow – but it looks optimistic.
• Valuations are elevated (41x 2026 EPS) for good reasons 1) Server share gains 2) rapid AI growth 3) higher ASP. After a vertical rally, the share price needs some room.

• Teradyne Inc. reported robust financial results for the third quarter of 2025, with a notable revenue growth of 18% and a significant increase in non-GAAP EPS by 49%.
• This performance was primarily driven by heightened demand for semiconductor tests related to AI applications.
• The UltraFLEXplus platform, which is tailored for high-performance processors and networking devices, has seen increased use due to the complexities of AI devices, indicating the strategic advantage of Teradyne’s focused R&D investments.

• Milian Technology files for Hong Kong IPO and seeks fresh capital for further expanding its global presence and accelerating overseas market penetration.  
• Xiaomi backed online social networking platform company is one of the fastest growing marriage and dating platforms in China, reaching RMB2,373m revenue in 2024, up ~129% YoY.
• I expect Milian Technology may seek unicorn valuation in upcoming HK IPO as growth is exceptionally high and profitability improved.