TMT/Internet

• 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.

• Project Digits is a supercomputer on everybody’s desk for $3000. Seems crazy but feels like 1977 Ken Olson moment “no reason anyone would want a computer in their home”
• Lack of data center revenue growth predictions likely spooked investors and triggered a ~10% pullback. Just buy the dip, you know you want to…
• Micron and MediaTek both jumped on news of their further involvement in NVIDIA’s AI acceleration hardware supply chain. 

• In December, I thought the March 2025 Nikkei 225 Rebalance was going to be 2 ADDs 2 DELETEs and a double-capping for Fast Retailing. 
• Fast Retailing has fallen sharply vs Nikkei 225, and another stock has announced a large-multiple share split, making it a strong candidate for Nikkei 225 ADDITION in March 2025.
• There is short-term path risk on all three ADDs, but they are definitely worth watching. Keep an eye out for separate insights on two of these names.

• Mainland investors continue their record southbound purchases during 2024 and into 2025. 
• GDS Holdings (9698 HK) , GDS Holdings (ADR) (GDS US) had a break out from its triangle formation in its continuation pattern.  The company may list its China REIT assets.
• Tencent (700 HK) had a symmetrical pattern breakdown after the announcement that the US pentagon had placed the company on its blacklist.  The company began a large share buyback.

• Galapagos NV (GLPG), a Belgian biotechnology company, announced on January 8, 2025, its plan to split into two publicly traded entities by mid-2025.
• Vivendi (VIV), the French media conglomerate, has recently undergone a significant restructuring by spinning off several of its key divisions into independent entities.
• On December 30, 2024, Lions Gate Entertainment (LGFA/LGFB) filed its latest proxy related to the spin-off of Lionsgate Studios (LION). You can read it here.

• Perfect Corp. provides an AI and machine learning based B2B SaaS platform for virtual try on and marketing of beauty and fashion products as well as six mobile apps sold B2C for makeup suggestions, try-on, tutorials, photo and video editing and most recently, Gen AI creation and editing.
• It is expanding its offering to new verticals and has strong IP as well as the largest database for AI training in the industry.
• It has a dominant market share and serves almost all the major beauty brands worldwide.

• SmartRent’s recent performance and strategic initiatives provide a complex landscape for investment consideration, marked by both challenges and opportunities.
• The company’s third-quarter results paint a picture of a business in transition, underscored by a leadership change and a strategic refocus on maximizing shareholder value through sustainable practices.
• Positively, SmartRent demonstrated resilience with a 23% year-over-year increase in SaaS (Software as a Service) revenue, indicating strong growth potential within its recurring revenue model.

• Intel’s Panther Lake chip set to drive growth in AI PC market and spark resurgence in semiconductor foundry industry by second half of 2025.
• Rapidus to provide 2nm chip samples to Broadcom, highlighting advancements in semiconductor technology and potential for increased performance.
• Taiwanese companies eye opportunities in expanding renewable energy market in the Philippines, showcasing interest in sustainable business practices. CES 2025 sees Nvidia unveiling robot collaborations while concerns emerge over South Korea’s absence. Honda and Sony face uncertainty as Afeela 1 debuts, while Tata Elxsi and Qualcomm team up to develop virtual models of Snapdragon Digital Chassis solutions. UK-Taiwan tech partnerships strengthen as British Representative to Taiwan concludes term, reflecting deepening alliance between the two countries.

• N-able’s earnings for the third quarter of 2024 revealed several critical insights into the company’s current performance and future strategies.
• On the positive side, the company reported revenue of $116.4 million, marking an 8% year-over-year growth on a reported basis and 7% on a constant currency basis.
• The Company also exceeded its guidance for this quarter.

• Commvault Systems, Inc. reported a robust second quarter for fiscal year 2025, marked by a significant increase in key financial metrics.
• Total revenue reached $233 million, representing a 16% year-over-year increase and marking the fourth consecutive quarter of double-digit revenue growth.
• Subscription annual recurring revenue (ARR) was particularly noteworthy, rising by 30% to $687 million, with software as a service (SaaS) ARR escalating by 64% to $215 million, now composing 25% of total ARR.

• Geovis Insighter Technology Co Ltd, the first commercial aerospace company to list on the Beijing Stock Exchange, achieved a successful IPO with a surge of 407.23% on its debut, in contrast to the recent failed listing attempt by another Chinese satellite company.

• Established in 2016, state-backed Geovis Insighter specializes in integrated solutions for spacecraft measurement, control management and aerospace digital simulation. The company’s stock was first listed on China’s New Third Board in February 2023.

• Its price fell 17.6% Monday, leaving the company with a total market value of 4.3 billion yuan ($587 million), surpassing the required 200-million-yuan threshold.

• KKR has extended the close date of the Fuji Soft Inc (9749 JP) second tender offer period from 9 to 24 January. All other terms remain unchanged. 
• KKR unconvincingly tries to criticize the Bain offer and unsurprisingly believes there will not be a tender offer by Bain that investors can tender into. 
• Despite KKR’s gamesmanship, it has not declared its offer final. A bump remains necessary as Bain remains resolute in launching its offer. The final winning offer could be around JPY10,000. 

• In this note, we will take a look at the Asia Pacific IPO pipeline for 2025, following up with a look at India after having looked at Hong Kong earlier.
• 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.

• Nicola Tangen interviews CEO and Chair of Accenture, Judy Sweet, discussing digital transformation and innovation.
• Accenture focuses on helping companies harness the power of technology and AI to be more efficient and grow.
• Sweet emphasizes the importance of leadership, storytelling, and communication skills in guiding companies through change and fostering a culture of continuous reinvention.

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

• An accelerated return of capital looks unavoidable. IDT has a net cash balance sheet yet generates substantial cash every quarter.
• Traditional business is “adding” ice. Investors (including me) view the traditional telecom business as a “melting ice cube,” but IDT’s CFO says the business might start “adding ice.” Key areas of strength include IDT Digital and Mobile Top Up.
• Spin-offs aren’t imminent. NRS is performing incredibly well, but IDT’s CEO doesn’t see a spin-off happening until the business is generating $100MM of EBITDA.

• Shift Up (462870 KS) raised around US$320m in its South Korean IPO, after pricing at the top. Around US$1.2bn worth of shares will be released from their lockup soon.
• Shift Up is a South Korean games developer, which as released three games so far for the global markets.
• In this note, we will talk about the lockup dynamics and possible placement.

• ARM licenses its intellectual property to companies that design chips, fitting into the broader semiconductor ecosystem
• ARM’s business model involves upfront license payments and royalties for chips shipped by licensees
• ARM’s CPU is a general-purpose chip, while GPUs are designed for specific tasks like graphics, illustrating the importance and interplay between the two architectures

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

• Confluent’s third quarter 2024 financial results reveal a blend of positives and negatives for investors.
• The company demonstrated strong subscription revenue growth, particularly in its cloud operations, but some broader business challenges warrant careful consideration.
• On the positive side, Confluent reported a significant year-over-year subscription revenue increase of 27%, totaling $240 million, with Confluent Cloud revenue growing even more impressively by 42% to $130 million.

• Ubiquiti, founded by Robert Pera, has seen a 1,500% rise in stock since its IPO in 2010
• The company’s unique approach to product development includes inexpensive, innovative products tailored to specific applications
• Ubiquiti’s flat organizational structure and focus on employee ownership and innovation have contributed to its rapid growth and success

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.

• ACI Worldwide Inc. recently reported its third quarter financial results for 2024, demonstrating both strengths and challenges within its business operations.
• During the quarter, the company showcased a notable 24% increase in total revenue year-over-year, driven by strategic efforts to accelerate contract signings, including both renewals and new contracts.
• This allowed ACI Worldwide to recognize new contract revenues upon signing, setting a promising foundation for their financial outlook for the remainder of 2024 and beyond.

• Forecasted trends for AI server market by 2025 indicate a significant growth in the industry, with US targeting Tencent and examining the future of WeChat.
• CES 2025 showcases a growing fascination with autonomous vehicles, with Nvidia and Qualcomm leading ecosystem competition, while Garmin’s AI-driven Unified Cabin wins Innovation Award.
• India’s fab dream holds huge potential but faces significant challenges, as Nvidia and MediaTek surprise alliance disrupts supercomputer market, and Malaysia and Singapore agree on Johor-Singapore Special Economic Zone.

• Tencent (700 HK) shares fell 7.3% on 7 January, after being designated a Chinese Military Company by the U.S. Department of Defense, prompting volatility to spike.
• Given the potential for further downside, or a relief rally, significant price movements and high volatility are to be expected.
• A long straddle is detailed to capitalize on the anticipated volatility in Tencent (700 HK) .

• There are 8 stocks listed in Indonesia, Malaysia, Thailand and Philippines that could be deleted from passive portfolios in February.
• There is a fair bit to sell in the stocks with over US$50m flow and between 3.5-64x ADV. Positioning is not very high in a lot of the stocks.
• Stocks could avoid deletion if they move higher in the next week or two. But increased positioning could keep a lid on that.

• The review cutoff date for the March rebalance of the HSIII was 31 December. The changes will be announced on 21 February and become effective after the close 7 March.
• There could be 5 changes to the index with some inclusions driven by potential addition to the Hang Seng Composite Index. That could lead to buying via Southbound Stock Connect.
• Horizon Robotics (9660 HK) is a potential inclusion to the HSCI and the Hang Seng TECH Index (HSTECH INDEX) in March.

• United Microelectron Sp Adr (UMC US) experiences approximately a 5-10% quarter-over-quarter (QoQ) decline in 1Q25. For the full year of 2025, we anticipate a modest year-over-year (YoY) decline of around 5%.
• We have observed some strength from Taiwanese Fabless companies, which could support the 1Q25 demand for UMC.  
• It has been noted that mature wafer demand is not solely driven by China and may help offset the impacts of the US-China Trade War, benefiting foundries outside of China.

• Lumen Technologies’ third-quarter 2024 performance outlines its strategic efforts and current challenges as it navigates a transformative phase to reposition the company within the digital networking and AI infrastructure sectors.
• The company reported a revenue decline, reflecting ongoing headwinds from legacy business sectors, even as it strives to pivot its offerings toward newer, more competitive markets.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• EV price cuts in Europe impact used car market, while US industry faces tariffs
• Kyocera to sell $1.27 billion in non-core business due to declining profits
• Toyota and Nvidia collaborate at CES 2025 for AI alliance towards autonomous future

Team Internet’s board yesterday confirmed that it has received two separate acquisition proposals from TowerBrook Capital Partners and Verdane Fund Manager. Each proposal offers 125p per share in cash, with an option for shareholders to choose an unlisted equity alternative.

• Take-Two Interactive Software has demonstrated a robust performance in its second-quarter fiscal year 2025 results.
• The company reported net bookings of $1.47 billion, aligning with the higher end of its guidance range.
• This performance was notably driven by the continued success of key franchises such as Grand Theft Auto and Borderlands.

• High-margin and growing Positioning business is overshadowed by struggling cellular module business and inventory issues
• Potential for significant upside if company divests or shuts down struggling business segments
• New leadership team and activist shareholder involvement indicate strategic shift towards unlocking value of core strengths in GNSS semiconductors and modules, with potential upside of 50-200% and limited downside risk

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.

• The U.S. Department of Defense has designated Tencent (700 HK) as a Chinese Military Company. Tencent Holdings (ADR) (TCEHY US) shares were down nearly 8% overnight.
• There is no change to the Non-SDN Chinese Military-Industrial Complex Companies List (NS-CMIC) yet. But the overlap between the DoD list and the NS-CMIC list is high.
• If added to the NS-CMIC list, Tencent (700 HK) will be deleted from global indexes and there will be HUGE passive selling from these trackers.

• Overnight, we got news that the JIC Consortium Deal for Shinko Electric Industries (6967 JP) was approved 27Dec2024. That was the last approval required (other than TSE TOB Launch approval).
• This is “on schedule” or slightly early from the previously-announced expected launch date.
• This morning, the stock is up sharply and is trading <0.75% from terms. Expect an announcement within two weeks. Current arb annualised at high 6% is OK. One could hold.

• The U.S. Department of Defense announced that it has added numerous Chinese companies including Tencent and CATL as companies that work with China’s military.
• This is likely to negatively impact Tencent and CATL’s prices in the next several weeks but positively impact on some of the major Korean rechargeable battery and gaming stocks.
• The higher probability scenario at this point is for Tencent and CATL to be officially included in the Chinese Military Industrial Complex list in the coming weeks. 

• Intel is pinning much hope on the success of the AIPC, a venture in which they are tied at the hip with Microsoft, which calls it a CoPilot+ PC
• The AIPC/CoPilot+ PC concept is struggling to gain traction. They will sell in volume, but only because buyers will have limited alternatives available. Ultimately, we see AIPCs cannibalising non-AIPCs
• Intel’s performance was underwhelming to say the least, but at the same time, not in the least bit surprising. Earnings coming on January 23. 

• Dell’s switch to AMD processors for commercial PCs in CES 2025 poses a threat to Intel’s market dominance in the industry.
• MediaTek and Nvidia’s collaboration to develop advanced supercomputer chips at CES 2025 promises enhanced performance and capabilities.
• US DoD banning Tencent, CATL, and CXMT in response to escalating tech tensions, and Toyota’s inauguration pledge to Trump raising concerns.

• LUNA stock faced a 57% decline due to Nasdaq delisting notice, with trading volume 25 times the average.
• White Hat Capital Partners invested $50m in December 2023 and increased the loan facility to $30m in October 2024.
• Luna Innovations specializes in fiber optic sensing solutions, with notable contracts in aerospace, automotive, and oil & gas industries.

• The Insight presents two S&P 500 INDEX (SPX INDEX) options strategies for 2025. Call overwriting can generate premium income and potentially enhance returns in a choppy but mildly positive market.
• The second strategy is a Risk Reversal, using the proceeds from a short call to buy a protective put option, providing downside protection while still allowing for some upside potential.
• Both strategies are designed to align with the expected market conditions, considering factors such as inflation, economic growth, and market volatility.

• The Fed injected some volatility into the market after their December meeting, as they noted an uncertain inflation outlook and the SEP less expected rate cuts for 2025.
• We discussed in our latest report (12/23/24 ETF Pathfinder), and continue to believe, that this is a buying opportunity.
• Market dynamics remain risk-on, the SPX remains above 5850 (a key support level we have discussed since late-November), mid-caps (IJH) and small-caps (IWM) are above supports at $61.50 and $218

• Latest TSMC Price Hike — Introducing the $18,000 Wafer; Supports The Case That Management Margin Guidance is Overly Conservative
• Mover Over Apple, Nvidia Could Become TSMC’s Largest Customer in 2025E
• SK Hynix(000660.KS): Insisting on HBM Technology and Continuing to Surpass Samsung in Net Earnings 

• Mitsubishi Research Institute (MRI) provides consulting services, as well as research and analysis, for the financial sector, government agencies, and the private sector.
• Profitability is poised to expand through acquiring new clients, growing recurring business, and focusing on profitable projects by moving up the value chain towards upstream consulting within the current medium-term plan (FY9/24-FY9/26).
• MRI aims to achieve 12% ROE by FY9/26 with such initiatives (7.5% FY9/24). Having a strong balance sheet with a net cash position, MRI plans to increase capital allocation to M&A, driving non-organic growth. 

• We see 38 potential and close adds and 51 potential and close deletes for the Hang Seng Composite Index in March. Some of the stocks are close on market cap/liquidity.
• There have been many new listings in the last weeks of December. Some of them are fairly large and will be added and that increases the number of potential deletions.
• There are stocks that have a very high percentage of holdings via Stock Connect and there could be some unwinding prior to the stocks becoming Sell-only.

• On 6 January, LG Corp announced that it plans to purchase 250 billion won worth of LG Electronics and LG Chem from 6 January to 7 March 2025.
• The share buybacks would represent 1.5% and 0.7% of LG Chem and LG Electronics’ market cap, respectively.
• Our base case NAV valuation analysis of LG Corp suggests implied NAV of 14.7 trillion won or NAV per share of 93,430 won, which is 25% higher than current price.

• 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.
• In this insight, we take a look at the final rankings of potential ADDs and potential DELs for the March 2025 index rebal event.
• We expect one change for the HSTECH index in March 2025 and combined with capping flows currently see US$475mn one-way flows.

• This Insight analyzes Tencent (700 HK) tailor-made option strategies traded over the last five trading days on the Hong Kong Exchange. Strategy highlights and volatility insights are provided.
• Historically low implied volatility favors bullish or bearish long volatility strategies.
• Calendar Spreads are a popular strategy. Bulls and bears are both very active in the market, expressing their views through trades.

• The Hang Seng Internet & IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).
• In this insight, we take a look at the final rankings of potential ADDs and potential DELs for the March 2025 index rebal event.
• We expect four changes for the HSIII index in March 2025 and currently expect flows of US$114mn one-way (including capping flows which will change).

• ASML CEO and delegation to visit TSMC, showcasing collaboration in semiconductor industry
• US adds 13 firms, majority Chinese, to entity list amid ongoing tensions
• Samsung Display to unveil 18.1-inch foldable OLED panel at CES 2025, showcasing advancements in display technology

AAC Technologies Holdings Inc is a China-based company formed in 1993 and incorporated in the Cayman Islands. It was listed on the Hong Kong Stock Exchange in 2005. AAC is one of the world’s leading solution providers for smart devices, with: [1] cutting-edge technologies in materials research; and [2] simulation, algorithm, design, automation and process development in areas including acoustics, optics, as well as electromagnetic drives and precision mechanics. The company also offers advanced miniaturised and proprietary technology solutions.

• In this edition: • Ahold Delhaize | formal closing of Profi deal • ING | determines cash payment per share as part of current distribution • PostNL / IDS | termination Russian gas transit: no material impact on Křetínský’s financial flex • TomTom | to partner with Esri delivering advanced location analytics • Dutch housing market | first signs of a normalisation?
• • Corporate Agenda week 2

• The review period for the March rebalance of the Hang Seng TECH Index (HSTECH INDEX) ended on 31 December.
• There could be one constituent change in March. With capping changes, that could lead to a one-way turnover of 2.6% resulting in a round-trip trade of HK$6.88bn (US$884m).
• Horizon Robotics (9660 HK) is also a potential inclusion to the HSCI Index in March, though inclusion in Southbound Stock Connect will only come through in May.

• SOUTHBOUND gross trading activity was quite light the last two weeks of the year. Non-SB trading of HK was even lighter. Net buying was strong.
• Net buying on tech was VERY big but not on Alibaba Group Holding (BABA US) (small positive) or Meituan (3690 HK) (largest outflow). 
• Financials and High Div SOEs are back on the menu. SOUTHBOUND has been a Very Big Percentage of traded volume. 

• After the peak of 4Q24, Taiwan Semiconductor (TSMC) – ADR (TSM US)‘s  revenue will see a decline of about -5% QoQ in 1Q25.  
• TSMC is expected to use 2nm technology in 4Q25, and we believe Advanced Micro Devices (AMD US) and Apple (AAPL US) could present products around 1Q26.
• TSMC could be set to announce its 2nm production plans, expansion into the US, Germany, and Japan, mature technology quotations, and the Capex budget for 2025. 

• LG CNS (LGCNSZ KS), the IT service unit of LG Corp (003550 KS), seeks to raise up to US$837 million through a primary/secondary offering.
• We previously discussed the IPO in LG CNS IPO: The Bull Case and LG CNS IPO: The Bear Case.
• We examine the syndicate’s valuation methodology. Our analysis suggests that LG CNS is attractive in the IPO price range. We would participate in the IPO.

• Apple’s spectacular 2024 has positioned it as a behemoth in the technology sector, with its stock climbing 30% compared to the S&P 500’s 23% gain.
• It closed the year at $250 per share, giving the company a valuation exceeding $3.8 trillion, just shy of the $4 trillion milestone—a feat no company has achieved.
• This growth was driven by new product launches, including the revolutionary Apple Vision Pro, advancements in AI with Apple Intelligence, and record-breaking revenue of $94.9 billion for the September quarter.

• According to our updated valuation analysis of LG CNS, it suggests a base case implied market cap of 7.4 trillion won, representing target price of 76,383 won per share. 
• Our base case valuation target price of 76,383 won is 23% higher than the high end of the IPO price range. 
• We lowered our target price by 6%, mainly due to greater political risks arising from the recent cancelled martial law and ongoing impeachment of President Yoon.

• AI agents are becoming more powerful assistants but need careful management to avoid potential risks.
• Honor is preparing for an IPO with corporate restructuring and rebranding efforts.
• Taiwan tightens restrictions on tech exports to China while the US considers banning Chinese drones like DJI.

• SSI’s Tracking Portfolio ended 2024 with a -1% return, hindered by cash holdings and significant losses in MSTR, BHIL, and BOOM.
• SSI shared 85 investment ideas in 2024, including 14 Portfolio Ideas, 69 Quick Pitches, and 2 “Why I’m Not Involved” overviews.
• Portfolio Ideas suffered losses over 50% due to ignored red flags, while Quick Pitches had a 60% win rate.

• IPG Photonics’ recent earnings for the third quarter of 2024 highlighted several key developments, financial metrics, and strategic initiatives that offer insights into the company’s current position and future prospects.
• The revenue for the quarter was $233 million, marking a significant year-over-year decline of 23% and an 8% decrease sequentially when adjusted for the sale of its Russian operations.
• Despite this, adjusted earnings per share were at the top end of the guidance, reflecting some operational resilience amid a challenging demand environment.

• LG CNS (LGCNSZ KS), the IT service unit of LG Corp (003550 KS), seeks to raise up to US$837 million through a primary/secondary offering.
• In LG CNS 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 fading growth momentum, mid-tier revenue growth, weak non-AI growth, high contract assets, bottom-tier FCF margin and large share overhang. 

• AI server BBU status being monitored to ensure no issues on the artificial intelligence server, ensuring smooth operations.
• TSMC’s global update highlights Japan, US, and Europe’s progress, showcasing Taiwan’s chip giant’s influence worldwide.
• Xiaomi investing in GPU cluster for faster processing, China’s Hua Hong appoints Intel veteran as President, South Korea investing $24.79 million in chip R&D projects.

• Singapore-based Eureka Robotics has raised US$10.5 million in Series A financing.
• B Capital spearheaded the round. New investors Airbus Ventures, Maruka Corporation, and G. K. Goh Ventures participated along with existing investors UTEC and ATEQ.
• Eureka Robotics was founded in 2018 to enable factories worldwide to automate dull, dirty, and dangerous tasks. The company leverages its proprietary technologies, which include high-accuracy calibration, computer vision, motion planning, and force control.

• Waystar provides cloud-based revenue cycle management and healthcare payments software solutions for healthcare organizations
• Platform streamlines billing, payments, and reimbursement processes for improved revenue collection and patient experience
• Offers two core segments with highly recurring revenue streams: software (financial clearance, claim management, denial management, revenue capture, analytics) and payments tied to transaction volumes

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.

• In Q324, Didi grew slowly, but core margin improved significantly on higher “take rate”
• Q324 liquidity position sound, but pace of 2024 investment difficult to sustain
• Two important reasons Didi could list shares in ’25, even if cash needs aren’t urgent