TMT/Internet

• SK Inc plans to use SK Hynix as a dividend machine, boosting payouts to ₩3 trillion, and if it absorbs SK Square, it could pocket ₩600 billion—doubling SK Telecom’s dividends.
• SK Inc will likely use ₩5 trillion from the SK Telecom deal for a tender offer, boosting its stake in SK Square to 60-70% before merging to minimize dilution.
• The SK Telecom deal and potential SK Square tender offer could be the main narrative driving SK Group stocks this year, making SK Square a key momentum play.

• The review period for the March rebalance of the KOSPI Size Indices commenced on 1 December and will end on 28 February.
• Over halfway through the review period, we forecast 39 migrating stocks. Among new listings, 1 stock could be added to LargeCap, 3 to MidCap and 2 to SmallCap.
• Three potential downward migrations were deleted from a global index in November. Now, four more potential downward migrations could be deleted from the same global index in February.

• TSMC: +23.9% Premium; Fallen But Remains in Historically Extreme Territory
• UMC: -3.6% Discount; Good Level to Go Long the ADR Spread
• ASE: +0.3% Premium; Can Consider Going Long the Spread at Current Level

• Hana Micron Inc (067310 KS) announced its plan to split into Hana Semiconductor Holdings and Hana Micron (a newly established company).
• Existing shareholders will receive shares of the two companies in equal proportions according to the split ratio which is 32.5% for Hana Semiconductor Holdings and 67.5% for Hana Micron.
• We remain negative on Hana Micron. The valuation of the company remains stretched. In addition, there are increasing concerns about the company’s new plan to split into two different companies.

• Astera Labs (ALAB US) is expected to migrate from Small-cap to Standard at the February 2025 review as its price has soared ~100% since the last review.
• The security’s free float is forecasted to increase from 25% to 70% at the May 2025 review due to lock-up expiry of undisclosed shareholders. Passive fund demand expected is ~$570m.
• Astera Labs (ALAB US) can migrate from small-cap to all-world in September 2025 with a slight price increase. Probability of migration in March 2025 is small.

• Finley translates unstructured credit agreements into code to streamline credit management processes
• Borrowers like RAMP and ANOVA rely on Finley for tracking and automation of reporting requirements
• Lenders like Trinity Capital Valley bank use Finley as a command center for debt capital data and analysis across transactions.

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

• Japan System Techniques (hereafter, the Company) announced its H1 Key consolidated figures net sales of JPY 13,260 mn (+9.3% YoY), operating profit of JPY 1,045 mn (+4.2% YoY), ordinary profit of JPY 1,077 mn (+6.8% YoY), and profit attributable to owners o  parent (hereafter, net profit) of JPY 671 mn (+3.2% YoY).
• Higher sales and profits in the DX&SI business and Package business contributed in H1 earnings growth.
• For FY2025/3, the Company forecasts: net sales of JPY 28,570 mn (+9.1% YoY), operating profit of JPY 3,150 mn (+12.9% YoY), ordinary profit of JPY 3,200 mn (+11.8% YoY), and net profit of JPY 2,300 mn (+10.2%).

• Broadcom offers hope for Samsung as Nvidia encounters difficulties, potentially shifting the balance in the semiconductor industry.
• Taiwan’s aerospace supply chain looks forward to expansion with new opportunities in the US market, driving optimism for future growth.
• China encounters hurdles in competing with Starlink in low Earth orbit satellite technology, as tensions rise over differing approaches to innovation and development.

• AI related demand accounted for ~15% of revenue in 2024, i.e. ~$13.5 billion. This is set to double to $27 billion in 2025
• 5 year growth CAGR of 20%, at the top end of the previously guided 15-20% range
• On track for $100 billion revenue in 2025, and most likely, $200 billion by 2030

• UMC Results This Week; Insight Into Supply/Demand Environment for More Mature Semiconductor Segments
• Nvidia and TSMC Announce Partnership in Silicon Photonics Technology — Will Enable More Energy-Efficient AI
• TSMC 4Q24 Results Signal Multi-Year Market Share Gains; Margin Strength; Sustainable Industry Growth 

• Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
• On the IPO front, Guming Holdings appears to be gearing up for a launch soon.
• On the placements front, while Wuxi XDC failed to perform, Murata Manufacturing (6981 JP) has been holding up so far.

• The relationship between Qorvo and Starboard Value has captured the attention of investors and market observers alike, as recent developments signal a potential turning point for the chip maker.
• On January 17, 2025, it was revealed that Starboard Value, one of Wall Street’s most aggressive activist investors, has acquired a 7.7% stake in Qorvo, equating to a $500 million investment.
• This announcement comes after a challenging year for Qorvo, during which its stock fell by 29%, weighed down by declining revenues in its mobile segment and an unfavorable product mix in the Android ecosystem.

• This week, IAC Inc (IAC) provided an update on its Angi Inc (ANGI) spin-off plans.

• Previously, IAC had suggested that it would spin off ANGI but hadn’t confirmed it.

• IAC will spin-off its entire stake in Angi Inc in the first half of 2025, but no sooner than March 31. 

• AH Premia are lower over the last few weeks of holiday and this past week of heavy SOUTHBOUND buying on telcos, banks, brokers, insurers, tech, and airlines.
• The average AH Premium across all pairs is now the lowest it has been in five years.
• The VERY WIDE Tech spreads bifurcated. SMIC (981) and Shanghai Fudan Microelectric (1385) both continued strongly. China Rail Signal (3969) and Flat Glass (6865) widened again.

• SOUTHBOUND gross trading activity was again not stronger per day than the previous several weeks, but SB Net Buying was again BIG. Given the change in Tencent, remarkable even.
• The story was follow-through, but SMIC and Xiaomi were also big buys. This is shaping up to be a “let’s buy what US Persons cannot” moment.
• No sectors saw net selling through CCASS data five days to Weds. Top 10 activity was quite concentrated this week. Very few stray names.

• Alphabet, the parent company of Google, has long been a pioneer in artificial intelligence, with a history of groundbreaking research and innovative technologies.
• Yet, the company finds itself struggling to close the gap with OpenAI, the leader in generative AI.
• In 2024, Alphabet doubled down on its AI efforts with the rollout of its Gemini chatbot, positioned as a direct competitor to OpenAI’s ChatGPT.

• Plexus Corporation has demonstrated significant progress in its fiscal fourth-quarter 2024 results, reflecting both operational strengths and some challenges faced by the company.
• The company’s revenue for the quarter was robust, reaching $1.05 billion, which surpassed the guidance range and was driven by stronger demand across various market sectors.
• The aerospace and defense, as well as the healthcare/life sciences sectors, contributed significantly to this performance.

• TD SYNNEX Corporation’s fourth quarter and full fiscal year 2024 earnings highlight a mixed performance with both positive and negative aspects for investors to consider.
• During the fourth quarter, TD SYNNEX experienced a 10% year-over-year revenue increase, with gross billings up by 7%, which surpassed the company’s internal expectations.
• This growth was largely spurred by strength in the Endpoint Solutions, driven by robust demand for PCs, as well as double-digit growth observed across its cloud, cybersecurity, and data and analytics portfolios.

• LG CNS reported a successful IPO book building results analysis. The IPO price has been finalized at 61,900 won per share (high end of the IPO price range).
• The demand ratio from the institutional investors was 114 to 1. At the IPO price of 61,900 won, the expected market cap will be 6 trillion won. 
• According to our valuation analysis, it suggests a base case target price of 76,383 won per share, which represents a 23% upside from the IPO price of 61,900 won.

• Samsung Electronics stock has been an underperformer outright and also relative to Kospi200 as an overhang of catalysts has weighed on performance.
• Implied vols are at the 88th percentile over the last 3 years and are at the top of their range relative to Kospi200.
• We recommend 4 different ways to position in front of these catalysts and the large stock buy-back that was announced in November. 

• Trump 2.0 AI policies spark debate and criticism with a focus on nationalism and economic protectionism, dividing opinions.
• China launches new low-altitude economy department to drive future growth, while Apple establishes Shanghai subsidiary to enhance AI integration in the country.
• Nvidia CEO confirms growing CoWoS-L production capacity, but Apple faces crisis in China with 25% drop in iPhone shipments despite market dominance. Vietnam semiconductor push hindered by power supply challenges, prompting Asian countries to counter Trump 2.0’s aggressive policies swiftly.

• Takachiho Koheki (hereafter, the Company) is a trading company highly specialized in electronics technology that has identified the underlying needs of its customers to introduce the world’s cutting-edge electronics products to Japan ahead of competitors.
• With engineering employees accounting for over 40% of its workforce, the Company is a highly specialized technical organization with a total of about 25,000 customer accounts, and its solid customer base is one of its assets.

• In H1 FY2025/3, the Company surpassed initial estimates, reporting consolidated net sales of JPY13,314 mn (+4.6% YoY), operating profit of JPY936 mn (+31.2% YoY), ordinary profit of JPY811 mn (-23.2% YoY), and profit attributable to owners of parent (hereinafter, net profit) of JPY594 mn (-17.2% YoY).

• Author has a long position in CHTR and may buy or sell securities without notice
• Importance of conducting independent research before making investment decisions
• Views CHTR as a opportunity despite competition from FWA, with significant risk-reward potential

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.

• Samsung Electronics announced that it will revamp its executive compensation system to include treasury shares as incentives. Samsung has benchmarked TSMC in terms of paying treasury shares to its employees.
• Samsung Electronics’ decision to revamp its executive compensation system to include treasury shares as incentives aligns the interests of the shareholders along with the company’s management.
• Now that Samsung Electronics has incorporated stock based incentive system, it is likely that other Korean companies that could follow suit. 

• The ChiNext index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.
• The ChiNext 50 index is a subset of the ChiNext Index and it consists of the top 50 names in the ChiNext index with the highest daily average turnover.
• We see 10 changes for the ChiNext index and 5 changes for the ChiNext 50 index in the next index rebal event. Combined it is about US$1bn to trade one-way.

• TSMC 4Q24 Gross Margin Comes In At High End of Range; Profit +57% YoY
• TSMC’s Latest Strong Capex Guidance is Good News for Industry Sentiment
• Long-Term Gross Margins — Will Recently High Gross Margins Become a “New Normal”?

• 4Q24 beat Consensus by ~4%, 1Q25 guidance ~7% above Consensus at OP level.
• 2025 revenue up mid-20%. AI revenues will double or more depending on capacity bottlenecks (2023 5%, 2024 15% of total revenues). 2025 Capex US$40bn, from 2024 30bn. 
• The stock is trading at 18.8x 2025 and 15.8x 2026 Consensus EPS.  This is cheap for the ~25% growth outlook over 2025-26.

• Revenue reached USD$26.88 billion (compared to guidance of 26.1-26.9 billion USD) / NTD$868.46 billion  (+14.3% QoQ, +38.8% YoY); Gross margin at 59%,within the guided range of 57-59%.
• Revenue expected to be in the range of USD$25-25.8 billion (-5.5% QoQ) impacted by seasonal factors, offset by AI demand. Gross margin: 57-59%.   
• AI revenue is expected to double in 2025. With the advancement of AI technologies, the company anticipates mid-40s CAGR for AI accelerators within a five-year period (2024-2029),

• Chongqing Terminus (2471080D CH) is looking to raise about US$300m in its upcoming Hong Kong IPO.
• It operates in China’s public realm AIoT (Artificial Intelligence of Things) industry.
• In this note, we look at the firm’s past performance.

• In Q4 2024, Xiaomi Corp (1810 HK) ranked fourth in China (mainland) smart phone market, achieving the highest annual growth among the top vendors at 29%.
• Chinese government’s recently expanded subsidy program now covers smartphones and wearables, with a 15% subsidy for products priced under CNY6,000. This could boost demand growth in 2025.
• China’s smartphone market rebounded in 2024, driven by affordable premium designs driving upgrade demand in the mass market while innovations like GenAI, foldables, and proprietary systems attracted high-end users.

• In 1Q25, there was a further improvement to -5% QoQ for UMC, and its gross margin is at around 26-28%.
• The extra improvement is from Novatek Microelectronics Corp (3034 TT), which has also received an additional order from Vivo.   
• The outlook remains unclear as Samsung Electronics (005930 KS) is facing uncertainties in 2025.

• Apple suppliers shifting focus to India and China for iPhone production growth, adapting supply chains to changing markets.
• Jensen Huang boosting AI chip production by visiting SPIL’s new Taiwan factory; Huawei’s Mate X6 smartphone making global comeback in EMEA markets.
• TSMC forecasting 5% revenue decrease in 1Q25, setting record capex for 2025; India-US tech ties in jeopardy due to export controls on AI chips.

• Share Repurchase Programme: EUR 800M buyback (4% of market cap) aims to cancel shares, boosting EPS and shareholder value, funded by non-core asset sales.
• Valuation Insight: Current market price significantly undervalued versus EUR 42.68 consensus target and EUR 43.80 DCF valuation, offering substantial upside potential.
• Strategic Alignment: Ensures financial discipline (DFN/EBITDA 5–6x target by 2025/2026) while enhancing returns via repurchase programme and increased dividend payouts from 2026 onward.

• To establish a comparable universe we benchmarked and divided into tiers the 25 most comparable companies after a preliminary screen of over 2,000 technology listed companies.
• To derive reliable forecast assumptions, we conducted ratios trend analysis (using income statement ratios, balance sheet common size analysis, liquidity ratio and operating statistics, leverage ratios, and additional profitability ratios) as well as a comparative ratio analysis (the same ratio analysis as per above for each company in the peer group, as presented below), which allowed us to develop multiple forecast scenarios and sense check the forecasted financials.

• For the purpose of the final recommendation we used the “Upside” scenario, to show that even with optimistic forecasting assumptions, fundamentals fail to justify the current market price. 

• A group of 7 shareholders are looking to sell 61.3m shares in Murata Manufacturing (6981 JP) to raise JPY 143.8bn (US$916m). That is 3.3% of shares outstanding.
• The shares are being offered at a price range of JPY 2296-2345.5/share, a discount of 5-7% to the last close of the stock.
• With the offering less than 5% of shares outstanding and less than US$1bn in size, there is no immediate passive buying and there could be further weakness in the stock.

• Today after the close, Murata Manufacturing (6981 JP) announced an equity offering worth roughly US$870mm if the stock prices 10% below last. 
• Unlike “regular” secondary offerings, this is available only to overseas investors, and bookbuilding is very quick. This “increases the size” relative to its headline (no retail uptake).
• At 11 days of ADV and 3.3% of shares out, it has a certain size, but the stock is well-owned by foreigners, and not terribly volatile vs Peers.

• In this note, we will take a look at the Asia Pacific IPO pipeline for 2025, with a look at ASEAN, ANZ and ADRs. 
• This list has been compiled on a best effort basis from tracking the company filings and through various other sources.
• The deals you see in this note are only a part of our full IPO pipeline tracker. Feel free to drop us a message for additional information on these IPOs.

• A group of shareholders aim to raise around US$900m via selling around 3% of Murata Manufacturing (6981 JP), in another cross-shareholding selldown.
• The company’s shares haven’t done much over the past few years and recent share price performance as well hasn’t been the best
• In this note, we will talk about the placement and run the deal through our ECM framework.

• December 2024 revenues of NT$278.16 billion, up 0.8% MoM and up a remarkable 57.8% YoY. It was the second highest monthly revenue in the company’s history.
• Q424 revenue amounted to NT$868,460. At the company’s forecasted exchange rate for Q4,  NT$32 to the US$, this amounts to $27.14 billion, the company’s highest quarterly revenue ever
• We expect 2025 to be another growth year for TSMC, likely in the mid to high teens range. Expect Q125 to be down ~5% QoQ based on normal seasonality.

• Delta Electronics Thailand (DELTA TB) is trading at a huge valuation premium to Delta Electronics (2308 TT), though that has narrowed over the last couple of months.
• Delta Electronics Thailand has already been on the Market Surveillance list for 2 months and inclusion for another 2 months will mean SET 50 Index deletion in June.
• A placement by Delta Electronics (2308 TT) is not out of the question and that further increases the downside risk for Delta Electronics Thailand (DELTA TB).

• ASML’s total shareholder return is lagging behind its semicap peers and TSMC
• The company’s share price recently experienced a significant two-day drop
• Despite past reservations, the author sees potential for a good risk/reward opportunity in buying ASML stock due to better pricing and negative investor sentiment on lithography

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.

• Shift Inc (3697 JP) ’s share price went up by about 13% today following the release of its 1QFY08/2025 results yesterday. Share price is up 19% YTD.
• • Shift’s aggressive investment on HR and system reinforcement had resulted in a decline in the company’s margins since 1QFY08/2024, this drove share prices down.
• Shift has once again proved that its business model is resilient and we expect the company’s earnings to continue to see strong growth going forward.

• TSMC Results Today; Arizona Production of 4nm Started, Yield on Par with Taiwan
• TSMC Q424 Earnings Preview, 2025 Outlook & Q125 Look Ahead 
• Delta Taiwan Vs. Thailand Monitor: Convertible Sale; Delta Thailand Should Underperform Vs Parent Co 

• Delta Thailand Weakness Amid Block Trade and Convertible Bond News
• Delta Taiwan Offering Convertible Bonds, Convertible into Delta Thailand Shares
• Delta Thailand Still Overvalued Relative to Delta Taiwan — Short Delta Thailand vs. Long Delta Taiwan

• Some speculate Samsung might delay the value-up announcement until after the February 3 ruling, using it strategically to influence the verdict and align with the appeal’s outcome.
• Market chatter even surrounds Samsung’s HBM test delays with NVIDIA, with some linking it to Lee Jae-yong’s February 3 appeal ruling—though it seems more like speculative conspiracy.
• If Lee Jae-yong wins his appeal on February 3, it could trigger key events like value-up disclosure and HBM pass, significantly impacting Samsung’s short-term price action and positions.

• In the past several years, one of the biggest risk factors on Samsung Electronics and other Samsung Group affiliates has been the huge inheritance tax payments by the Lee family.
• Despite the weak share price performances of the four major Samsung Group affiliates, their consolidated equity increased by 31.4% on average from end of 2019 to end of 3Q 2024.
• Once Lee family pays off the fifth installment in 2025, the market could look upon this situation more favorably due to reduced overhang associated with additional future inheritance tax payments.

• Shift reported a 95% increase in OP, to ¥3.2bn, compared to consensus estimate of ¥2.6bn on January 14 after the close.
• Just under 5 months ago, we suggested the stock was about 45% undervalued. It is up 40%.
• We still expect 20% annual growth through 2030. This is no longer a turnaround stock, but now one of the most solid growth stocks in the market.

• There is a great opportunity for someone joining an advanced semiconductor manufacturing camp because there could be fewer players in the field.  
• For a long time, TSMC production staff have won better bonuses in the company, meaning they might be able to overcome the difficulties in production.  
• Rapidus might need another 5 years or more to become profitable if everything runs smoothly for 2nm technology. 

• China’s semiconductor industry faces devastation with 10,000 companies going bankrupt and hiring coming to a halt.
• Biden shifts chip strategy favoring TSMC over Intel as his term nears end, signaling a change in approach.
• Advancements in technology may soon make ‘one robot per household’ a reality, with AI chip export ban discussions ongoing.

• Money Forward, Japan’s leading SaaS provider, reported strong results for its fiscal year ending November 2024: Sales +33% YoY to ¥40.4 billion
• FY11/25 EBITDA guidance of ¥3.5 billion significantly lags consensus expectations of ¥6 billion. 
• The disappointing EBITDA guidance may trigger further selling, but there is no material change to the company’s long-term fundamentals. Time to be bullish

• Revenue for cumulative Q3 FY02/25 was JPY21.6bn, operating profit JPY6.5bn, net income JPY4.7bn, EBITDA JPY7.6bn.
• BDS sales revenue rose 12.7% YoY to JPY14.2bn, with cloud services growing 17.3% YoY, invoiceAgent JPY1.7bn.
• Full-year FY02/25 forecast revised to revenue JPY28.5bn, operating profit JPY8.1bn, EBITDA JPY9.6bn, profit JPY5.9bn.

• Silicon Laboratories delivered mixed results for the third quarter of fiscal 2024.
• The company’s revenue reached $166 million, which marked a 14% sequential increase, although it was down 18% year-over-year due to persisting issues related to excess inventory among distributors and end customers.
• Despite this decline, Silicon Laboratories managed to surpass the midpoint of its revenue guidance, signaling some resilience in its business operations amidst broader market challenges.

• In this edition: • Ahold Delhaize | agrees to buy Delfood • Philips | another challenging year for Philips’ sales in China; software problem detected • InPost / Allegro | Temu close to taking over Allegro’s position as market leader in Poland

• Kokusai Electric (6525 JP) was IPOed in September 2023. The stock was cheap. It rose sharply, tripling in 9 months. At the ATH, the pre-IPO owners launched a HUGE secondary.
• It was like a second IPO. The stock dipped, rallied, plummeted into pricing. Stayed there for two days, and in 6 months, the shares have halved. 
• Lockup expiry is next week, and there is a likely large index event in ~10 weeks.

• Shift Inc (3697 JP) is a high-growth stock in the software services, testing, consulting, development business. They have a big specialist TAM ahead of them. 
• Revenue is up 50-fold in 10 years. OP is up 85-fold in that period. Revenue is guided +17.5% in the year to Aug 2025. OP is guided +28%.
• There is an event coming up shortly which could trigger an imminent index inclusion. It’s worth a look.

• The review period for the Nikkei 225 Index March rebalance ends in 3 weeks. There could be one outright change and one or two others driven by sector balance.
• Shift Inc (3697 JP) will have a 15:1 stock split next week and that puts the stock in the list of potential inclusions over the next couple of rebalances.
• The recent drop in Fast Retailing (9983 JP)‘s stock price will lead to a single step drop in the PAF. That means less passive selling and a smaller funding buy.

• TSMC: +28.4% Premium; Near-All-Time High, Good Level to Short the Spread
• UMC: -0.4% Discount; Fifth Consecutive Month of Increase in ADR Headroom
• CHT: -0.9% Discount; Good Level to Go Long the Spread

• There could be 1 constituent change for the STAR Chip Index at the March rebalance. There will also be a few capping changes.
• Estimated one-way turnover is 6.5% resulting in a round-trip trade of CNY 3.12bn (US$426m). Passives need to trade between 0.24-0.33x ADV in the potential changes.
• There is one very close add and the final list could change depending on price performance over the next 10 trading days.

• Market Euphoria and Investment Challenges: Trump’s re-election has fueled excitement in the stock market, especially for Elon Musk-linked companies, but investing in SpaceX remains difficult due to its private status.  
• Proxy Stocks: Investors can access SpaceX indirectly through proxy stocks like Rocket Lab (RKLB) or funds such as Destiny Tech100 Inc. (DXYZ) and the ARK Venture Fund (ARKVX). 
• Valuation Concerns on DXYZ: Despite DXYZ’s significant outperformance compared to other proxies, its rapidly expanded market cap/fair value multiple raises concerns about overvaluation and stock price sustainability.

• Tough week with 82% of optionable stocks we survey declining on the week but no sign of panic as investors still prefer Calls over Puts. 
• Tencent was far and away the volume leader, accounting for 37% of all option trading.
• Materials was the only Sector to see price gains and implied vol rose across all Sectors we survey.

• HSI and HSCEI were down every day this past week.
• HSI total Put volume heavier than total Call volume on the two largest down days this week showing rising concern amongst investors.
• Having dropped 5.6% to start the year HSI has already moved well past the implied move at the start of the month.

• In this note, we will take a look at the Asia Pacific IPO pipeline for 2025, with a look at Japan & Korea after having looked at HK & India.
• This list has been compiled on a best effort basis from tracking the company filings and through various other sources.
• The deals you see in this note are only a part of our full IPO pipeline tracker. Feel free to drop us a message for additional information on these IPOs.

• TSMC ends partnership with PowerAIR in Singapore over Huawei worries, impacting supply chain in tech industry.
• China retaliates against US with customs actions; CXMT starts manufacturing DDR5 chips, meeting demand for next-gen technology.
• India plans display fabrication facility, offering growth potential but encountering challenges. Luxshare’s purchase of Wingtech ODM to enhance design capabilities, reduce reliance on Apple, and boost tech industry prowess.

• SOUTHBOUND gross trading activity was not stronger per day than the previous two weeks. But SB Net Buying was HUGE. The biggest week since global index deletions in January 2021.
• The story was similar. On Tuesday in the US, Tencent was put on a DoD list leading to a possible CMC list appearance (which would lead to index deletions).
• Tencent saw US$4bn of SOUTHBOUND net buying. SMIC, Xiaomi, and China Mobile were another $1bn.

• Early in the review period, we forecast 3 changes for the FnGuide Semiconductor Top10 Index at the April rebalance.
• Based on the passive assets tracking the index, there will be between 0.6-1.6x ADV to buy in the adds and between 2-4.7x ADV to sell in the deletes.
• The forecast adds have outperformed the forecast deletes by a wide margin over the short-term and the medium-term. There could be more prior to the end of the review period.

• Investors haven’t lost their enthusiasm for Tencent. The put/call ratio is a long way from indicating panic.
• Implied vols have risen but are far from panic levels with 1M implied at it’s 39th percentile over the past year and 15th percentile since 2001.
• Skew has risen significantly for out-of-the-money Puts as spot has moved into a range where there is higher Put positioning vs Call positioning. 

• Strong price action, Kospi rising 2.32% on Monday and finishing the week up 3.24%
• Implied vol was virtually unchanged and historic vols came down in the move higher.
• Kospi tends to have its largest monthly average absolute price change during January.

• Cellnex plans to sell its 72% Swiss subsidiary stake, potentially generating €1.1 billion, as part of a broader strategy to divest non-core assets and reduce debt.
• Recent divestments in Austria, Ireland, and Scandinavia enable Cellnex to focus on strategic markets, targeting a debt-to-EBITDA ratio of 5-6x by 2025/2026.
• Optimizing its portfolio, Cellnex aims to boost shareholder returns via buybacks, higher dividends (which should attract income funds), and leveraging its strong market position in core European markets.

• We preview Plover Bay Technologies’ (1523 HK) FY24 earnings and expect 25% revenue growth and 38% profit growth, aligning with the profit alert’s trends.
• The company will declare its results on February 27th and hold a conference call to clarify its growth prospects for FY25 (vs our assumption of 20% avg-10 Yr growth)
• This is a name worth exploring, trading at 16x/14x FY24e/25e, net cash, with >50% ROEs and 5%/6% dividend yields for FY24e/25e. 

• NEV retail deliveries grew by 41% in 2024, higher than 36% in 2023.
• The US Department of Defense designated Tencent as a Chinese Military Company.
• Smart Share Global plans to go private, as the company has no exclusive advantage.

• MACOM’s third fiscal quarter 2024 financial results exhibit both strengths and areas of concern, offering a mixed bag for potential investors.
• The company reported a revenue of $190.5 million with an adjusted EPS of $0.66 per diluted share, marking a positive trend in turnover buoyed by sequential growth in the Data Center and Telecom segments.
• This financial performance was complemented by an impressive generation of over $40 million in free cash flow and an ending cash position of $521 million in cash and short-term investments.

• Endava PLC reported its financial results for the first quarter of fiscal year 2025, reflecting a period of transition and adaptation to evolving digital transformation trends.
• The company experienced a revenue increase of 3.5% to £195.1 million compared to the same period last year, representing a constant currency growth of 5.2%.
• This growth beat their guidance, and the company emphasized a notable shift in market demand towards AI and core modernization-driven growth, despite a slowdown in traditional digital business.

• I tally 51 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
• One new deal was discussed this week: CC Capital’s NBIO for Insignia Financial (IFL AU). 
• Key updates/news took place on: Arcadium Lithium (LTM AU), CPMC Holdings (906 HK), Greatview Aseptic Packaging (468 HK), Haitong Securities (H) (6837 HK), and Shinko Electric Industries (6967 JP).

• Wolfspeed Inc. has reported its results for the first quarter of fiscal year 2025, indicating a period of strategic transitions and adjustments amidst a challenging macroeconomic environment.
• The company is emphasizing the transition to a 200-millimeter silicon carbide (SiC) platform, which is seen as critical to its operational efficiency and market leadership.
• Wolfspeed aims to optimize its manufacturing processes to lower costs and accelerate profitability—key components of its broader strategy to tap into the growing demand for SiC in electric vehicles (EVs) and other industrial applications.

• Meta Platforms is making headlines once again with its latest overhaul of content moderation policies, signaling a significant shift in how the social media giant manages user interactions and information dissemination.
• In a bold move, Meta announced the elimination of its third-party fact-checking program, aiming to “restore free expression” by adopting a crowdsourced “Community Notes” model akin to Elon Musk’s X platform.
• CEO Mark Zuckerberg emphasized that the previous system was “too politically biased” and eroded trust, particularly in the United States.

• Considering of current financial outcome of Intel Corp (INTC US), we cannot but favor Advanced Micro Devices (AMD US).
• Currently, Advanced Micro Devices (AMD US) has a more favorable competitive landscape compared to Intel Corp (INTC US).
• The competition in PC CPU emphasizes not only performance but also heat dissipation and other techniques related to supply management.    

• Diodes Incorporated has reported its financial results for the third quarter of fiscal 2024.
• The company’s revenue exceeded expectations, reaching $350.1 million, a sequential increase of 9.5% from the second quarter but a decline from $404.6 million in the previous year.
• This growth was notably supported by improved demand in Asia, particularly the automotive sector, which rose by 18% and accounted for 19% of product revenue.

• In Clear’s fiscal third quarter 2024 financial results, the company reported significant advancements and positive momentum across its core strategic areas: enhancing member experience, scaling TSA PreCheck, and expanding Clear Verified.
• The company continues to innovate in identity verification, noting strong adoption of its face-first NV (enrollment and verification) hardware, resulting in three times faster processing with improved privacy features.
• Clear, a leader in secure identity solutions, is focused on simplifying the travel process and enhancing security.

• Broadridge Financial Solutions Inc. reported its fiscal first quarter results for 2025, showcasing a generally positive trajectory with a mix of growth areas and challenges.
• The company’s first quarter was shaped by several key elements, notably its recurring revenue growth, strategic investments, and the impact of recent acquisitions.
• Broadridge’s first quarter saw recurring revenue increase by 4% in constant currency.

• Axcelis Technologies’ third-quarter 2024 financial report highlights a mixed performance, with both positive strides and some challenges.
• The company reported revenue of $257 million and an earnings per share (EPS) of $1.49, aligning largely with expectations.
• This was mainly driven by robust demand in the image sensor market, despite a decline in power and general mature markets.