TMT/Internet

• TSMC: +11.8% Premium — Falling Closer to Its Historical Range
• ASE: +9.2% Premium; Further Breakdown Could Indicate Return to Previous Trading Range
• CHT: -1.8% Discount — Good Level to Long the Spread

• Mediatek is advancing full speed with recent industry collaborations for automotive chips, data center connectivity solutions, and AI memory solutions.
• In particular, the company has entered the market for Co-Packaged Optics (CPO), with partnerships announced with Foxconn and Ranovus.
• While the stock has rallied and re-rated, consensus forward estimates do not appear overly demanding and could still have room to increase further.

• Quanta surged with major server wins from Meta, Alphabet, and Amazon. Nanya Tech results are two weeks ahead and Intel will host a webinar this week about its Foundry business.
• Mediatek: Accelerating Momentum in Automotive, Data Center, and AI Memory Solutions 
• Hon Hai (Foxconn): After the 50% Surge, Where Can It Go From Here? 

• In mid-January, the TSE announced a “name-and-shame” list where they listed all the companies which had put forth a disclosure about 【資本コストや株価を意識した経営の実現に向けた対応】. But they did not actually shame.
• The list shows which companies have disclosed a policy/consideration. But no data/links. We have the links, and we are weeks ahead of the TSE. Working to get months ahead.
• We created a tool to name everyone, show their reports, provide links, and now a new tool. Put in a name, see the difference between the Old/New Reports.

• China announced game approval for the Feb batch. The number of games approved remained at a higher level than 2023.
• The pace of China game approval appears to have accelerated to the same level as pre-tightening.
• However, neither Tencent and Netease got any approval in March.

• Just a week after Nvidia’s GTC conference, Quanta has reportedly secured large orders for new Nvidia Blackwell-based servers from Google, Amazon AWS, and Meta. 
• Other firms showcasing Nvidia servers at GTC include Wiwynn, Gigabyte, Pegatron, Asus, Hon Hai (Ingrasys), Wistron, Dell, and Super Micro. There could be a higher probability of new order wins.
• Stock Focus: Asustek — Improving outlook as a play on both AI PCs and AI servers.

• 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: Bharti Hexacom (6597372Z IN) and Lianlian DigiTech (2104619D CH) IPOs.
• Event-Driven developments: Lawson Inc (2651 JP), Roland DG Corp (6789 JP), Sciclone Pharmaceuticals (6600 HK), CIMC Vehicle Group Co Ltd (1839 HK), HKBN Ltd (1310 HK), Probiotec Ltd (PBP AU). 

• A shares were down on the week, but rallied Thursday and Friday.
• Net SOUTHBOUND buying was +HK8.5bn after $57bn the two weeks before. SOUTHBOUND ended its consecutive net daily buy streak Monday, then started buying again.
• The flavour of SOUTHBOUND buying has been high-div SOEs for months and months. That is starting to change slightly. Tencent was the top net buy this week. Again.

• Mediatek Inc (2454 TT) Dimensity 9400 is expected to be released in September 2024F.  
• Artificial Intelligence (AI) is a trending topic, and MediaTek is adapting by emphasizing Generative AI functionality in its Dimensity 9300 and 9400 smartphone models.  
• The smartphone market is expected to recover in 2024F, with MediaTek’s revenue in the second quarter potentially surpassing the first quarter.

• We discuss the end of the mandatory lock-up periods for 46 stocks in Korea in April 2024, among which 6 are in KOSPI and 40 are in KOSDAQ.
• These 46 stocks on average could be subject to further selling pressures in April and could underperform relative to the market.
• The top three market cap stocks including those of which at least 1% of outstanding shares could be sold in April include APR, Angel Robotics, and Samhyun. 

• Micron Technology’s Fiscal Second Quarter 2024 Earnings showcased a lean towards optimism with some cautionary notes.
• It was revealed that the Micron sees substantial demand for High Bandwidth Memory (HBM) which has even surpassed their expectations and as such the HBM supply for 2024 is already sold out, with most of 2025’s capacity also already allocated.
• This is due in part to the product’s high performance specs and 30% lower power consumption.

• FactSet Research Systems Inc., a multinational financial data and software company, posted a mixed result for its second fiscal quarter of 2024.
• Despite enduring difficult market conditions and an industry rife with uncertainties, FactSet revealed a year-over-year growth of 5.4% in organic ASV plus professional services.
• The quarter-end showed over 8,000 clients with 75 net new logos added.

• Accenture’s Q2 financials reflect its ability to prosper amidst economic uncertainties due to the deep trust its clients place in it, its aptitude in handling complex core work and its strategic global positioning.
• The firm’s Q2 earnings indicate a persistence of momentum.
• They executed a significantly large number of sizable deals which elevated their positioning to capture more growth in the future, as spending continues to rise.

• Hon Hai shares have hit a new all-time high and have just risen past our target price of NT$155, surging after investors flocked to Hon Hai on AI news.
• Hon Hai showcased two key technologies at Nvidia’s GTC conference last week: Nvidia-based AI servers with liquid cooling systems and an AI autonomous driving controller using Nvidia’s Orin X processor.
• Hon Hai’s sharp rally appears to have partly been caused by a short squeeze; While we like the long-term fundamentals and increased TP to NT$170, Hon Hai appears near-term overbought.

• Bharti Hexacom is looking to raise up to US$513m in its upcoming India IPO.
• Bharti Hexacom (BH) is a communications solutions provider offering consumer mobile services, fixed-line telephone and broadband services to customers in the Rajasthan and the North East telecommunication circles in India.
• We have looked at the company’s past performance in our earlier notes. In this note, we talk about valutions.

• Bharti Hexacom (6597372Z IN), a 70% owned subsidiary of Bharti Airtel (BHARTI IN), aims to raise up to US$513 million at an IPO price range of Rs542-570 per share.
• We previously discussed the IPO in Bharti Hexacom IPO: The Bull Case and Bharti Hexacom IPO: The Bear Case. 
• Our valuation analysis suggests that the IPO price range is unattractive. Therefore, we would not participate in the IPO.

• Ibotta, a cashback rewards platform provider, files to list IPO on NYSE. The Denver-based technology company was backed by VC investors, GGV Capital, Walmart and Koch Disruptive Technologies.
• Ibotta is a trusted and well-known brand in the cashback space in the United States, and means “I-bought-a”. The company is led by its Founder & CEO, Bryan Leach.
• Considering Ibotta’s strong and profitable growth, low penetration of the addressable market opportunity, and potential international expansion, they should have a successful IPO.

• The electronic financial transactions industry is expanding, with a focus on personalization, the gig economy, and fraud prevention
• Mastercard is well positioned to benefit from the shift away from cash and towards digital payments
• Magellan’s portfolio manager Alyssa DeMarco discusses Mastercard’s growth and innovation with Devin Core, highlighting the company’s evolution over the past decade and its strategic focus on diversification and global expansion

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

• Genesys Intl Corp (GENE IN) or (GICL) is engaged in Geospatial services.
• The balance sheet of the company is surrounded by impairments; in the last few years, the company has impaired a major chunk of its intangibles, investments, goodwill and advances
• Other forensic insights include doubts on revenue recognition, struggle with the cash flows and earnings quality, recon issues and treatment of few line items

• Astera Labs, an overvalued fabless semiconductor company, has completed its IPO and raised ~$565M of net proceeds in the offering. The IPO was priced at $36/share.
• Astera Labs shares jumped 70%+ in their first trading day and finished session at $62.03. The stock peaked at $95.21 on Tuesday and fell ~21% over the next 2 days.
• According to their prospectus, ~5.9M shares of Astera Labs will be available for sale following the public release of earnings for 1Q’24, which I expect to be announced in April.

• The looming threat of a business ban on TikTok in the United States is driving millions of users and advertisers to seek alternatives to the popular short video platform, presenting a significant opportunity for rivals such as YouTube and Meta.

• Data released by Sensor Tower in March indicates that, over the past 90 days, nearly 94% of TikTok users in the U.S. have begun using Alphabet’s YouTube.

• Additionally, 80% of TikTok users have shifted their attention to Instagram, 68% to Facebook, and 55% to Snapchat.

• U.S. chipmaker Micron Technology Inc. expects deeper cooperation with the Chinese government as Beijing ramps up efforts to boost foreign investment, its CEO said at a forum in the capital Monday.
• Speaking at the China Development Forum, Sanjay Mehrotra hailed the recent release by the State Council of a 24-point plan designed to promote high-level opening-up and attract foreign investment as the latest show of China’s determination to improve its business environment for foreign companies.
• Micron cannot grow its business in China without government support, Mehrotra added, while reaffirming the company’s commitment to expand its business in the world’s second-largest economy, where it has a presence in Beijing, Shanghai, Shenzhen and Xi’an.

• 50% mobile market share with scope to improve shareholder returns – Okinawa Cellular is the operating company for parent KDDI’s (9433) mobile and FTTH brands in Japan’s southernmost prefecture, with a dominant 50% mobile carrier market share.
• The company benefits from the parent’s centralized R&D initiatives limiting its costs, and economies of scale through the joint procurement of handsets.
• With sector-leading operating margins and a strong track record of free cash flow generation, management actively allocates capital to shareholder returns, resulting in an estimated total shareholder payout ratio of 127.8% for FY3/24. 

• This is our first report on software player, ACI Worldwide Inc. The company delivered a solid earnings performance for the fourth quarter and full year ended 2023.
• The company witnessed a strong acceleration in growth, with a revenue growth of 9% and an EBITDA growth of 32% in its Biller segment.
• The company also demonstrated growth in its banking segment, with revenue growth of 35% and 24% in its anti-fraud and real-time payment solutions respectively.

• While AEye announced 4Q23 revenue of $0.1 million and reduced cash burn again, the real story was the signing of a letter-of-intent with a Tier 1 automotive ADAS sensor supplier.
• CEO Matt Fisch said this, “marks the beginning of a new relationship as part of our capital- light, automotive-first strategy.”
• AEye announced its first 4Sight Flex product, Apollo, which will target L2+, L3, and L4 applications in the automotive market. 

Datatec expects to report revenue of $5.44bn for FY24, up 5.8% y-o-y, and noted that the quality of earnings improved in the year. During H224, Westcon International continued to deliver a strong financial performance. Logicalis International also had a strong half, although its reported revenue growth has been suppressed by a higher proportion of net revenue-reported software sales. Logicalis Latin America had a tougher H2 due to difficult market conditions in Argentina and Brazil. We maintain our forecasts pending FY24 results, which are expected to be on or around 27 May.

• QYOU Media announced the launch of two new channels for its Connected TVs business as well as a distribution agreement for QPlay+.
• On its March 7th townhall, QYOU USA highlighted that it is currently having its best quarter ever, bouncing back from the Hollywood strike.
• This sets up QYOU for a record 2024, as seen in our model and Q1/24 preview section below.

• Globalwafers (6488 TT) is looking to raise up to US$681m in its GDR offering. The proceeds will be used to purchase raw materials overseas.
• The deal is a somewhat large one to digest at 20.2 days of three month ADV and the proceeds will be used to purchase raw materials overseas. 
• In this note, we run the deal through our ECM framework and comment on deal dynamics.

• In response to Roland DG Corp (6789 JP) request, on 22 March, Taiyo said it was considering a revised offer. However, Taiyo has since remained silent. 
• Despite discussions with Brother Industries (6448 JP), the Board have not been able to eliminate dis-synergies concerns. The Board has left the decision to accept the Taiyo offer to shareholders.
• While the Board is trying to dissuade Brother, Brother will take its offer directly to shareholders if the Taiyo offer fails. Taiyo’s behaviour suggests a reluctance to bump. 

• I wrote about this in my recent post about HBM, and it seems almost everything I talked about became true. HBM is going to bail out the memory markets meaningfully.
• Let’s talk about earnings, but I was hoping you could keep this post in mind while I discuss Micron.

• These are the kinds of beats we start to see when the cycle turns. Now, the stocks have begun to anticipate this, but given the pricing dynamics of HBM, I feel very confident in Micron’s ability to hit a new cycle high in profitability.

• Tencent reported C4Q23 revenue, IFRS operating profit, and non-IFRS net income in-line with our estimates and in-line with consensus, with non-game revenues exceeding while game revenue missing expectations;
• We believe the shift from game to non-game should enhance Tencent multiples but the market might have concerns on the sustainability of this change. 
• We believe this change is sustainable with game revenue reaccelerating and non-game revenue continues to gain weight. We cut TP by 3% to reflect slow game recovery in C1H24.

• Delta Taiwan Outperforms Delta Thailand After Showcasing Its AI Power Efficiency Solutions at NVIDIA Corp (NVDA US)’s GTC Conference 
• Delta Taiwan vs. Thailand Valuation Mismatch Has Corrected Further; Delta Thailand Finally Worth Less Than Its Parent
• Short Interest Spiked for Delta Taiwan; Taiwan Rally Short-Term Overdone Due to AI Concept Stock Hype?

• Bharti Hexacom (6597372Z IN), a 70% owned subsidiary of Bharti Airtel (BHARTI IN), aims to raise up to US$513 million at an IPO price range of Rs542-570 per share.
• In Bharti Hexacom IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
• The bear case rests on low geographic diversification, slowing growth, share overhang from TCIL’s desire to exit fully, mid-tier revenue growth and EBITDA margin. 

• WCP raised around US$314m via selling a mix of primary and secondary shares in its Korean IPO. The lockup on some of its parent’s stake will expire soon.
• WCP designs, manufactures, and sells separators, which are one of the four core materials for secondary Lithium-ion batteries.
• In this note, we will talk about the lock-up dynamics and updates since our last note.

• Charter Communications is contending with a narrowing competitive advantage in the cable industry due to the entrance of new rivals like fiber overbuilders and fixed wireless providers.
• The company must make ongoing capital investments to stay competitive, despite uncertain returns on these investments.
• Charter’s aggressive capital allocation approach, motivated by management incentives, is raising doubts about the company’s investment potential and future outlook.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Oracle Corporation had a strong performance in its third-quarter fiscal year 2024, with revenue in-line with expectations and EPS $0.02 above the high-end guidance.
• However, both potential future performance and inherent risks were noted, which investors should closely observe.
• A significant part of the discussion was centered on Oracle Cloud Infrastructure (OCI), tagged as the primary driver for the company’s overall revenue acceleration.

• Taimei has transformed from a classic SaaS model to an industrial Internet platform, with value-added digital services as main source of revenue.However, this may not necessarily bring better financial performance.
• Considering declining revenue growth/gross margin, as well as constantly increasing customer acquisition cost, it’s highly uncertain whether Taimei can successfully turn losses into profits in 2025 as expected by management.
• The significant valuation changes in Series E/E+/F Financing attracted the attention of Shanghai Stock Exchange.Taimei is actually not confident in its future performance. Its valuation could be lower than Yidu.

• Xiaomi released healthy financial results inspite of the shrinking market.
• Alibaba Freshippo founder, Mr. Hou, retired from his role as the CEO of Freshippo.
• JD began to provide aftermarket service to BYD, the largest new energy vehicle producer.

• Key Taiwan Server Names Soar; Delta Electronics Major Winner of Nvidia’s Conference
• TSMC (2330.TT; TSM.US): Raising Growth Target to 25%+ YoY in 2024F
• Memory Monitor: Micron Leapfrogging Into HBM3E for AI; Nanya Lagging Peers But Poised to Benefit 

• Bharti Hexacom (6597372Z IN), a 70% owned subsidiary of Bharti Airtel (BHARTI IN), aims to raise around US$500 million at a valuation of US$3.3-4.2 billion. 
• The offer is a pure secondary offering. The Government of India aims to reduce its stake from 30% to 15% of outstanding shares. 
• The bull case rests on market share gains, ARPU growth, low churn rates, improving margins, cash generation and low leverage. 

• Accredify, a company that enables firms to create, issue, and manage tamper-proof verifiable credentials in Singapore, has raised an undisclosed strategic investment from US-based Okta Ventures, the investment arm of the independent identity management platform Okta.
• Accredify will integrate Okta’s solutions, such as SSO and MFA, into its product.
• This Series A extension round follows the Singaporean startup’s US$7 million financing in April 2023, co-led by iGlobe Partners and SIG Venture Capital, with participation from Pavilion Capital and Qualgro.

• FY23/12 saw a strong push towards management initiatives aimed at a V-shaped recovery in financial performance.
• On the other hand, conservative guidance was provided for FY24/12, due to the uncertain market sentiment, strategic cost increases, and the need to avoid downward revisions for three consecutive terms in the mid-year.
• Although the stock price fell sharply after the 4Q FY23/12 earnings announcement, it has recently been recovering somewhat, perhaps fueled by the recognition and understanding of the conservatism of the guidance and the company’s true earnings potential.

• B2B ecommerce startups in India and Southeast Asia have been facing challenges in scaling up their businesses after the pandemic.
• In December 2023, Indian unicorn Udaan laid off at least 100 employees after raising US$340 million, while two months earlier, Indonesia-based Ula announced that it was also cutting jobs and transitioning out of its inventory-led FMCG distribution business.
• However, positive news comes from B2B startup Jumbotail, which has raised US$18.2 million in an equity round.

• GL-Carlink Technology (1818017D CH) is looking to raise >US$100m in its upcoming HK IPO. The deal will be run by CCBI.
• GL-Carlink (GLC) is a connected services provider for players within the automotive aftermarket industry in China, selling in-vehicle hardware products and the provision of SaaS marketing and management services.
• As per CIC, connected services refer to connecting vehicles with the Internet and providing comprehensive hardware products, software services, and value-added services for customers such as 4S stores. 

Nano Dimension made good progress growing revenue and gross margins in FY23. The company is now focused on reducing cash burn and moving to profitability, via its Reshaping Nano initiative, and is simultaneously looking to acquire in the additive manufacturing space to consolidate its position. Nano Dimension continues to buy back shares while they trade at a discount to book value.

• Jensen Huang showcased Nvidia’s dominance in the data center during his keynote address
• Nvidia’s new Blackwell architecture involves stitching together two monolithic cores, not using chiplets, to create a single functioning chip
• The innovation behind Blackwell and its impact on Nvidia’s technological advancements were not fully appreciated during the event, highlighting the complexity and ingenuity of the design.

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

• Ai Palette, a Singapore-incorporated startup enabling consumer packaged goods (CPG) companies to create products using AI and machine learning technologies, has bagged US$4 million in equity financing from local VC firm Tin Men Capital.
• This brings the capital raised by the AI startup in the Series A extension round to US$5.8 million.
• With the fresh funds, Ai Palette looks to expand further into the beauty & personal care and nutraceutical categories, which began development in November 2023.

• A shares were down small on the week. Larger caps down more. H-shares down more after a hard Friday.
• Net SOUTHBOUND buying was +HK35.8bn after $21.4bn the week before. SOUTHBOUND has net bought every day since the end of Chinese New Year.
• The flavour of SOUTHBOUND buying has been high-div SOEs for months and months. That is starting to change slightly. Tencent was the top net buy this week.

• Travelsky Technology Ltd H (696 HK) share price has recovered by 25% since January 2024 sell off
• CNY travel data indicates a huge potential of revenue increase for Travelsky.
• At 18x PER, Travelsky has become a bargain in the travel sector that is clearly rebounding. 

• A review of the structure of the stock market makes us long-term bullish.
• Growth stocks, as proxied by the NASDAQ 100, are weakening but a rotating correction is evident as value stocks are taking up the leadership mantle.
• That said, the S&P 500 is short-term extended and can pull back at any time, with initial support at about 5000 and strong secondary support at about 4800.

• Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
• On the IPO front, Trial Holdings (5882 JP) ended up doing better than we expected, while Hong Kong finally got its first US$100m+ listing for the year.
• For placements, India was again at the forefront, this time with a not-so-pleasant results of Tata Consultancy Svcs (TCS IN). 

• Crypto mining requires high capital investment, faces volatile bitcoin prices, and will experience upcoming revenue cuts due to the halving on April 16th
• Experts believe the risks outweigh the potential for short-term success in crypto mining, making it unlikely to generate significant free cash flow in the long term
• Examples like MARA, which saw a significant increase in revenue at a small fraction of its market value, showcase the precarious nature of the industry

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• 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: Lianlian DigiTech (2104619D CH) launches a US$78 million IPO.
• Event-Driven developments: Chilled & Frozen Logistics Holdings (9099 JP), JSR Corp (4185 JP), Shinko Electric Industries (6967 JP), IntelliCentrics Global Holding (6819 HK), Sciclone Pharmaceuticals (6600 HK). 

• Tencent Holdings Ltd. (腾讯) reported weaker-than-expected results in the fourth quarter of 2023, as the Chinese internet behemoth faced challenges growing its gaming business, particularly in China’s domestic market.
• During the three-month period, Hong Kong-listed Tencent generated 155.2 billion yuan ($21.9 billion) in revenue, up 7% from 2022, according to its earnings report released Wednesday. That missed the average estimate of 157.4 billion yuan by analysts surveyed by Bloomberg.
• Quarterly net profit also fell short of expectations, down 75% year-on-year at 27 billion yuan, compared to average analysts’ predictions of 33.3 billion yuan.

• On 21 March, Bloomberg reported that TPG and MBK had restarted a strategic review to reduce their HKBN Ltd (1310 HK) shareholdings. Previous privatisation rumours have fizzled out.
• The options include going private, attracting new investors, or raising cash through some of HKBN’s assets. Infrastructure-focused funds and one Chinese telco (likely China Mobile (941 HK)) were approached.
• The probability of an offer is low as TPG and MBK will need to accept a material discount on their cost per share and financing challenges due to high leverage. 

• Back on the 18 December 2023, superannuation service provider Link Administration (LNK AU) entered into a Scheme with Mitsubishi UFJ Financial Group.
• MUFJ offered Link shareholders A$2.10/share (in cash) plus a A$0.16/share dividend (25% franked), or a 32.9% premium, all-in. 
• The Scheme Meeting will now take place on the 24th April, with expected implementation on the 16 May. This looks done – and trading accordingly. 

• Micron shares have soared after the company reported its latest results with forward margin guidance well above consensus expectations.
• Micron appears to be successfully leapfrogging into ther HBM memory space, and says that its production for 2024E is sold out and for 2025E is already all ‘allocated’.
• Taiwan’s Nanya Tech has lagged its peers by a wide margin; Nanya lacks HBM products however HBM market demand is driving supply tightness for all DRAM.

• Chinese fintech giant Ant Group Co. Ltd. has completed the reshuffle of its consumer lending businesses Huabei and Jiebei, wrapping up a years-long, government-driven overhaul, a person close to the matter told Caixin.
• Ant’s two wholly owned small loan business units, the operators of Huabei and Jiebei, have fully exited the businesses during the past year.
• The two brands have been incorporated into Chongqing Ant Consumer Finance Co. Ltd. (CACF), a subsidiary set up in 2021 that is 50% owned by Ant, according to the person close to CACF.

• Adobe Inc.
• delivered robust financial results for the first quarter of fiscal year 2024, with a revenue of $5.18 billion.
• This represents a 12% year-over-year growth, demonstrating the significant role of Adobe products in powering the global digital economy.

• The second quarter of fiscal year 2024 saw Jabil Inc.
• achieve approximately $6.8 billion in revenue.
• This performance was in line with the guidance for the majority of the company’s businesses.

• Kuaishou reported C4Q23 revenue, IFRS OP, and IFRS net income in line, 31%, and 51% vs.  our estimates; and in line, 43%, and 67% vs. consensus.
• The significant profit beat was mainly due to the rich content supply on the platform that led to organic traffic influx, resulted in marketing costs reductions. 
• We raised our TP by HK$2 to HK$81, implies 20X PE, vs. current trading at 13X PE for 2025.

• Intel snags $8.5 billion in direct funding through the CHIPS and Science Act to advance its commercial semiconductor projects in Arizona, New Mexico, Ohio and Oregon.
• Investment Tax Credit (ITC) of up to 25% on > $100 billion in qualified investments and eligibility for federal loans up to $11 billion are also on offer
• Meanwhile, two separate reports suggest delays of up to two years in Ohio and suppliers in Arizona unable/unwilling to meet previous commitments to establish local supply chains. Ouch!

• In the Fourth Quarter and Full Fiscal Year 2024 Results, PagerDuty demonstrated solid growth, indicating the company’s steady progression in the market.
• The full-year revenue grew 16% year over-year, and non-GAAP operating margin expanded to 13%.
• Similarly, in the fourth quarter, revenue grew 10% to $111 million, exceeding the high end of the company’s guidance range.

Sunny Optical has released its FY 2023 numbers, which were weak but in line with expectations. Revenue declined 4.6% y-o-y to CNY 31.7 bn, due to lower shipments of handset-related products. Gross profit tumbled c. 30% to CNY 4.6 bn, with the margin shrinking to 14.5%. OCF plunged 64% to CNY 2.7 bn, while capex decreased slightly. FCF was therefore positive, albeit significantly lower. That said, the financial risk profile and liquidity remain healthy, supported by a large net cash position.

We believe the industry operating environment will stabilise. The company marked seven consecutive months of double-digit shipment volume growth in February 2024, indicating that the recovery in the smartphone market is continuing. We expect shipments to stabilise at this level, which will represent a robust increase from the FY 2023 numbers. We project positive revenue and earnings growth in FY 2024.

• Science Applications International Corporation (SAIC) delivered strong performance in the fourth quarter of fiscal year 2024 due to its focus on value provision to customers and a favorable funding environment.
• This resulted in significant revenue growth and throughout the fiscal year, pro-forma revenue increased by over 7%.
• The underlying business execution remains robust, as evidenced by the 11% increase in free cash flow per share and a 50 basis point increase in EBITDA margins, over last year.