TMT/Internet

• Alphabet Inc., the parent company of Google, has long been a dominant force in the tech world, leveraging its search, cloud, and AI capabilities.
• Recent announcements, including the development of its custom quantum computing chip “Willow,” the launch of Gemini 2.0 AI models, and its partnership with Samsung for mixed-reality headsets, have spurred investor optimism.
• These developments come against the backdrop of an earnings call highlighting impressive revenue growth and expanding AI applications across search, cloud services, and autonomous driving.

• 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 rankings of potential ADDs and potential DELs for the March 2025 index rebal event.
• Based on the latest available data, we see four ADDs and four DELs for HSIII in March 2025.

• Nec Networks (1973 JP)‘s own FA didn’t include any measure of transaction synergies to be created about which NEC and NESIC were so sure. This is not being done right.
• Singapore Post (SPOST SP)‘s muted price action after announcing the ~S$900mn FMH sale is illustrative. But expect more value to be unlocked from divesting non-core ops going forward. 
• The FTC’ blocking the giant grocery merger of Kroger Co (KR US) and Albertsons Cos (ACI US) spells trouble for ACT and Seven & I Holdings (3382 JP).

• 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.
• Five new deals this week: Insignia Financial (IFL AU), Fosun Tourism (1992 HK), and Lifestyle China (2136 HK). VCredit Holdings (2003 HK) and Vesync (2148 HK) also in the crosshairs. 
• Key updates/news took place on: Guotai Junan Securities (2611 HK)/Haitong Securities Co Ltd (H) (6837 HK), Fuji Soft Inc (9749 JP), CPMC Holdings (906 HK), and Dexus Property (DXS AU) 

• GitLab’s recent quarterly results reveal a complex, yet promising landscape for the company.
• GitLab reported arevenue increase of 31% year-over-year, reaching $196 million for the third quarter of fiscal year 2025.
• The company exceeded profitability guidance with a non-GAAP operating margin of 13.2%, up more than 1,000 basis points from the prior year.

• Guidewire Software’s recent earnings for the first fiscal quarter of 2025 provides insightful details on the company’s strategic initiatives and financial performance.
• The company reported a strong start to the fiscal year, emphasizing momentum in cloud adoption and strategic international growth.
• On the positive side, Guidewire Software demonstrated robust performance with total revenue reaching $263 million, marking a 27% year-over-year increase.

• Hewlett Packard Enterprise’s fiscal fourth quarter results for 2024 demonstrated a robust performance, highlighted by record quarterly revenue of $8.5 billion, marking a 15% year-over-year increase.
• This growth was driven largely by the continued success of HPE GreenLake and a notable acceleration in AI system revenues.
• The company’s results surpassed expectations across key financial metrics, including revenue, diluted net earnings per share, and free cash flow.

• Onto Innovation reported its third-quarter financial results for 2024, demonstrating several strengths and challenges that inform its investment outlook.
• The company achieved a revenue of $252 million, marking a 4% sequential increase and a 22% rise year-over-year.
• This performance set a new quarterly record for inspection revenue, indicating robust demand within its specialty device and advanced packaging segments.

• Samsara Inc. reported strong financial and operational performance in the third quarter of fiscal 2025, highlighting its continued growth and strategic advancements in a dynamic market.
• Samsara ended the quarter with an annualized recurring revenue (ARR) of $1.35 billion, representing a 35% year-over-year growth, and achieved a record 10% adjusted free cash flow margin.
• The growth in ARR was driven by signing high-profile clients across various sectors, including significant deals with companies like Papa John’s and Fortune 500 firms, indicating Samsara’s ability to attract large, complex organizations seeking digital transformation of physical operations.

• Sprinklr, a company focused on a unified AI-powered customer experience management platform, reported its Q3 fiscal year 2025 financial results, providing insights into its current operational status and future strategies.
• The company achieved a total revenue of $200.7 million for the quarter, marking an 8% year-over-year growth, while subscription revenue grew by 6% year-over-year to $180.6 million.
• However, professional services revenue disappointed with a gross margin of negative 8%.

• ~4 weeks ago, Fuji Soft Inc (9749 JP) responded to Bain’s Proposal to take over the company but got KKR to bid ¥1 more, then said that covered it.
• The Special Committee then asked the FSI Board to halt further negotiations with Bain, and to ask Bain to destroy all confidential documentation. 
• Bain rejected saying it contravened METI Guidelines on Corporate Takeovers and reappeared 2 days ago with a ¥9,600 bid. The structure/details of Bain’s bid was probably a strategy mistake.

• ServiceTitan, a provider of field service management software for home service businesses, priced its IPO at $71.00/share and raised ~$625M.  
• ServiceTitan IPO has seen robust demand among institutional investors. The company boosted its initial price range to $65.00 to $67.00 per share.
• The offering was priced above the price range, valuing ServiceTitan at ~$6.5B. The stock jumped ~42% on first day as a public company and closed at $101.00 on Thursday.

• Nvidia Corp. on Tuesday asserted its commitment to fair competition, after China’s market regulators opened an antitrust investigation into the U.S. chip giant over suspected violations linked to a 2020 deal.
• The probe, announced on Monday by the State Administration for Market Regulation (SAMR), concerns Nvidia’s compliance with the country’s Anti-Monopoly Law and conditions tied to its $6.9 billion acquisition of Israeli network-equipment maker Mellanox Technologies Ltd.
• The deal — the largest acquisition Nvidia has ever made — faced intense scrutiny from Chinese regulators, who conditionally approved it after nearly a year-long process.

• Samsung Display appoints new VP to lead strategic product realignment, driving focus on key areas.
• BYD expands EV production in Europe, while Gotion aims for battery growth in Morocco and Slovakia.
• Google unveils Gemini 2.0 and next-gen TPU Trillium, ushering in the era of AI agents; Morris Chang shares insights on Intel’s leadership crisis. Samsung shifts 2,000 engineers to Pyeongtaek to tackle HBM hurdles.

• Although the outlook for 1Q25 might be somewhat negative, we believe that it is a reasonably typical result.
• We understand that MediaTek did not succeed in qualifying its Apple iPad and iWatch CPUs originally, but we believe it is now preparing for a re-qualification process.
• Looking ahead to 2025, we anticipate a more favorable outlook for MediaTek.

• Yesterday, NEC Corp (6701 JP) extended its Tender Offer to buy controlled subsidiary Nec Networks & System Integr (1973 JP) for another 10 days. It did not have enough shares.
• As discussed here 4wks ago, then here yesterday, NEC might not get enough shares unless it offers a higher price. There’s a reason. It is not a high enough price. 
• METI Fair M&A Guidelines and Guidelines for Corporate Takeovers define fair. Guarantees of a floor price and a fair allocation of synergies. One is questionable. The other is not there.

• Mike Green explains how leveraged products on MSTR resemble a short straddle in their rebalancing requirements
• The two times leveraged long products, MSTU and MSTX, are unique due to their large size and underlying asset volatility, creating potential volume amplifying feedback loops
• The leveraged complex has contributed to the large premium of MSTR to the value of its bitcoin holdings, impacting ETFs forced to use options market due to limited leverage from swap providers

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

• LG CNS (LGCNSZ KS) is looking to raise around US$850m in its upcoming Korea IPO. 
• LG CNS is a South Korean information technology company. The firm primarily provides comprehensive digital transformation services and solutions backed AI, big data, and cloud.
• In this note, we look at the firm’s past performance.

• Novanta Inc.’s third quarter of 2024 results reflect a mixed performance driven by a challenging macroeconomic environment, customer-related timing issues, and some positive business developments.
• The company reported revenue of $244 million, an increase of 10% year-over-year, though organic growth was flat.
• Adjusted gross margins were 46%, a slight decline from the previous year due to the dilution from the Motion Solutions acquisition, although core business margins improved by 70 basis points.

• BlackLine’s recent quarterly performance showcases a mix of both robust achievements and ongoing strategic challenges.
• The company, co-led by Owen Ryan and Therese Tucker, has demonstrated its ability to exceed revenue and profitability targets, reflecting effective strategic execution.
• A significant achievement this quarter was the record free cash flow generation, indicating strong financial health and potential for reinvestment in growth initiatives.

• Mediatek’s Apple Watch Win Highlights Smartwatch Market Opportunity; Breakthrough Into Apple’s Supply Chain
• MediaTek’s Role in Apple Watch Connectivity; Mediatek’s TSMC Relationship to Provide a Lasting Advantage
• Mediatek Rallied But Remains Below Highs; Significant Upside Remains — Maintain Structural Long

• NVIDIA Corporation, the global AI and semiconductor powerhouse, has found itself in the crosshairs of China’s antitrust regulators.
• Amid an escalating tech war between the U.S. and China, Beijing’s State Administration for Market Regulation has launched an investigation into NVIDIA’s compliance with antimonopoly laws concerning its $6.9 billion acquisition of Mellanox Technologies in 2020.
• This probe comes on the heels of the U.S. imposing stricter export controls on advanced semiconductor technologies, further intensifying the global tech rivalry.

• Interview with Michael Dell, founder of Dell Technologies, discussing his journey and insights in the tech industry
• Dell started his tech career at a young age, working in a Chinese restaurant and later upgrading computers
• Dell shares his thoughts on entrepreneurship, technology development, and the future impact of AI in various industries

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

• US increases tariffs on tungsten, wafers, and polysilicon in Section 301 Trade Action against China by Trade Representative, impacting global trade.
• Challenges facing semiconductor industry highlighted by Intel and Microchip cases under CHIPS Act, affecting technological development.
• Apple and Broadcom collaborate on custom AI chip, enhancing ASIC capabilities, while Tesla resumes search for showrooms in India. Xiaomi aims for premium market in India as smartphone sales slow.

• GlobalFoundries’ third-quarter fiscal year 2024 results provide a comprehensive overview of its financial performance and strategic initiatives.
• The company reported revenue of $1.739 billion for the quarter, reflecting a 7% sequential growth, albeit a 6% decline year-over-year.
• This revenue growth is commendable given the challenging industry conditions with lower factory utilization levels around mid-70s.

• Two days before the close of its TOB on subsidiary Nec Networks & System Integr (1973 JP), NEC Corp (6701 JP) announced it had no plans to raise the price. 
• The next day, the second largest shareholder reported a stake increase from 11.68% to 13.12%. That changes the dynamic further, and a change in terms was likely. 
• Today post-close, NEC extended the Tender Offer by 10 days. It is worthwhile understanding the likely current disposition of shares. 

• Topcon Corp (7732 JP) shares rose 51% over two days, confirming a Bloomberg report that is conducting a privatisation auction. The process is in the second round of bids.
• Exploring the privatisation process is unsurprising, as Topcon has materially underperformed the Nikkei 225 since its last medium-term management term plan was announced on 12 May 2023.
• Despite the share price pop, Topcon trades at a discount to median peer multiples. At an offer of JPY3,000, Topcon would trade in line with median peer multiples.

• 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 rankings of potential ADDs and potential DELs for the March 2025 index rebal event.
• We see two index changes based on the latest available data. However, the reference period is not complete which means our expectations can change over the next few weeks.

• The battle for Fuji Soft Inc. (9749 JP) took an unexpected turn. Bain revised its offer to JPY9,600, a 1.6% premium to KKR’s JPY9,451 second tender offer. 
• Bain has introduced a minimum number of shares to be purchased criterion. Bain’s offer is structured to address most but not all of the special committee’s reasons for opposition.
• The Board’s first reaction will be to ask KKR, its preferred bidder, to bump. Given the amount of time and effort KKR has put into this bid, it will bump. 

• Palantir Technologies (PLTR US) is anticipated to be the largest addition following its eligibility, which was secured through a listing transfer from NYSE to Nasdaq just before the cut-off date.
• Super Micro Computer (SMCI US) is projected to exit the index despite its recent entry in July 2024, as it has ranked above the exit threshold of 125.
• ARM Holdings (ARM US) is not an expected deletion due to special ADR market cap treatment. Equinix Inc (EQIX US) is not an expected addition because it is a REIT.

• This is our 10th “Annual Edition of the Major Korean IPOs Pipeline Preview” at Smartkarma.
• This insight will feature 50 of the biggest potential IPOs in Korea in 2025.
• These 50 IPOs in Korea are likely to represent more than 80% of all capital raised through IPOs in Korea next year.

• AMD’s Lisa Su has been honoured as Time’s CEO of the year, a fitting tribute to a leader who  pulled off what many thought to be impossible
• Despite flawless execution and carving out a brand new $5 billion market segment within AI Acceleration, AMD’s share prices is down 44% from its 52 week high
• AMD will ultimately face headwinds from Arm but, for the time being, their growth will come from continuing to take market share from Intel and building on their Instinct platform 

• ISU Petasys is betting the FSS chief, tied to the current administration, won’t have much market power due to the impeachment drama—and that gamble looks likely to pay off.
• ISU Petasys’ rights offering still offers solid trade potential, with 97% stockholder allocation and only 21% from the major shareholder, increasing the chance of significant unclaimed shares hitting the market.
• Our plan is to grab stock rights cheap, ride the 15% discount, and capitalize on stock pullbacks, though lack of futures limits short hedging. Still, an unhedged setup looks promising.

• BCG is a dominant operator of online classified assets in Lithuania and Estonia, with potential expansion into Latvia
• Despite being in the early stages of monetization, BCG shows strong earnings growth potential and appeals to private equity buyers
• BCG’s focus on generalist and vertical classifieds, with various monetization strategies, positions them well for continued 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.

• Raksul operates niche B2B online marketplaces in Japan with exceptional shareholder alignment
• Recent dip in stock value due to market trends, but shows promise for 2-4x returns in next two years
• Unique approach to collecting tolls on indirect costs for SMEs in Japan sets them apart in 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 Bloomberg article today said Topcon Corp (7732 JP) is weighing takeover bids received from KKR and EQT. ValueAct has been pressuring the company for 18mos (5+% in May23)
• ValueAct has apparently been pushing the company to divest assets and concentrate on core ops, or go private (and have someone else do it). 
• This is further evidence of the METI-enabled “Bad Cop-Good Cop Routine” which could expand M&A and governance activity dramatically. 

• Talabat Holding (TALABAT UH) is expected to be listed on 10 December 2024, on the Dubai Financial Market at a valuation of ~$10.3bn.
• Fast-Entry is forecasted to be announced for the one Global Index at the close of 10 December and traded on 20 December in conjunction with the review.
• Uncertainty regarding the Fast-Entry arises due to lack of shareholder information in the Institutional Offering which can result in the float market cap being determined as invalid.

• According to our valuation analysis, it suggests a base case implied market cap of 7.9 trillion won for LG CNS, representing target price of 81,095 won per share.
• Therefore, our base case valuation target price of 81,095 won is 31% higher than the high end of the IPO price range.
• We estimate LG CNS to generate sales of 5.99 trillion won (up 6.8% YoY) and net profit of 356.1 billion won (up 7.1% YoY) in 2024.

• Consistent compounders, stocks with steady earnings growth and excess returns over a long period of time, are difficult to find. It’s even more difficult to find reasonably valued compounders.
• From the universe of large Asian companies, we screen those with steady profit growth (>10%) and excess returns in each of last 10 years and over next three forecast years.
• Our list of 20 inexpensive compounders comprises 10 from onshore China, 5 from HK, 3 from India and 1 each from Japan and the Philippines.

• The Semiconductor industry associations report re-accelerating Semi sales, and increase 2024-25 forecasts. This is due to higher AI / Accelerators, HBM Memory but the rest of the market remains sluggish
• TSMC remains on its high growth plateau at 34% YoY, driven by AI and 3nm. UMC remains on a sluggish recovery at 7% YoY.
• AMD, Nvidia, SK Hynix, TSMC: stocks are not expensive on PE relative to earnings growth. Non-Consensus: we think AMD and SK Hynix are worth a serious look.

• The Circuit podcast discusses the uncertainty surrounding Intel’s future leadership and strategic direction
• Ben and Jay analyze the board’s role in Intel’s challenges and debate the company’s path forward
• The podcast ends on a hopeful note, with Jay expressing optimism about Intel’s 14A technology and the potential for success in the future

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

• TSMC’s November revenue decline was better than expected, poised for nearly 30% annual revenue growth.
• SK Hynix restructures CIS organization to replicate HBM success model, aiming for improved performance.
• TSMC founder sheds light on reasons behind Samsung and Intel’s setbacks, pointing out core issues. YMTC refutes backdoor listing rumors, facing industry scrutiny; while Samsung explores using discrete LPDDR for AI-driven iPhones and China investigates Nvidia amid US-China chip tensions.

• Gartner, Inc.’s financial performance in the third quarter of 2024 showed resilience amidst a complex economic landscape.
• The company’s contract value grew by 7% year-over-year and revenue figures exceeded expectations, with a total Q3 revenue of $1.5 billion representing a 6% increase on an FX-neutral basis.
• Gartner exhibited robust performance across its business segments, leading to raised guidance for revenue, EBITDA, EPS, and free cash flow for the year 2024.

• Qorvo, Inc. has reported its financial results for the second quarter of fiscal 2025, revealing a mixed performance across its various business segments.
• During the quarter, Qorvo achieved a revenue of $1.047 billion, marking an 18% sequential increase and exceeding their guided midpoint.
• This growth was driven by double-digit increases across all three operating segments: Advanced Connectivity and Sensors Group (ACG), High Performance Analog (HPA), and Connectivity Systems (CSG).

• Revenue grew 10.8% YoY to JPY37.3bn, driven by Overseas Solutions order growth and yen depreciation impact.
• Operating profit decreased 9.7% YoY to JPY634mn due to business liquidation expenses and additional game co-development costs.
• Revenue from animation production increased YoY, but Media Contents faced a loss due to joint game development costs.

• Constituent changes to the S&P 500 INDEX and capping changes will result in a round-trip trade of US$15.9bn across the Select Sector indices and the S&P500 Equal Weight Index.
• The Select Sector index trackers and S&P 500 Equal Weight trackers will need to buy Apollo Global Management and Workday, adding to the buying from S&P 500 INDEX trackers.
• The flows will change over the next week as stock prices move around and final capping is done after the close on 13 December.

• Pat Gelsinger took to X to invite us to join him in 24 hours of “praying and fasting” for Intel’s 100k employees to help them navigate “this difficult period”
• This is an unprecedented move never before seen in the semiconductor world, albeit we suspect that IBM may have dabbled in something similar to resurrect their 2nm process prowess
• This coming Thursday is the proposed date. Don’t expect miracles, this could take until the following Monday for the full impact to manifest itself in terms of share price appreciation

• Strong price action across the market this week coupled with implied vols having caught down to historic vols has put a floor on implied vols.
• Tencent sees strong call buying in December 410 and 420 Calls with month end 400 strike Put buying for December and January.
• Cathay Pacific, +21% over past 3 weeks, HSBC, at 52-week high plus up 38% on the year and BABA, down 21% from Oct 02 high all active names.

• Although vols have stabilized this week both HSI and HSCEI are still trading about 3-4 vol above where they were pre-stimulus and are still not monetizing.
• Strong price action this wek helped keep a floor under implied vols. 
• Positions were added in both HSI and HSCEI with demand tilted towards up-strike Calls given the rally on the week.

• LGES takes over GM battery plant in response to Trump’s win, expanding its presence in the US market.
• India establishes a sovereign AI ecosystem, driving ambitions forward for technological advancements in the country.
• Samsung’s One UI 7 Beta introduces AI enhancements and improved security features in anticipation of the Galaxy S25 release.

• In this edition: • ASM International / ASML Holding / BE Semiconductor Industries | brightened outlook for semiconductor equipment sales • Black Friday/Sinterklaas update | fewer debit card payments during Sinterklaas week

• QuantumPharm (2228 HK) listed in Hong Kong after raising US$126m towards the bottom end of its IPO price range. Its six-month lockup will expire on 12th Dec 2024.
• QuantumPharm is a R&D platform, utilizing quantum physics-based first-principles calculation, advanced AI, high-performance cloud computing, and scalable and standardized robotic automation to provide drug and material science R&D solutions.
• In this note, we will talk about the lock-up dynamics and updates since our last note.

• ServiceTitan, a founder-led market leader for trades businesses in the United States and Canada, is expected to IPO this week.
• The company’s amended S-1 puts the initial price range per share at $52.00 to $57.00, implying a market cap of roughly $5B at the midpoint.  
• I have a positive view of upcoming ServiceTitan IPO and expect an attractive first trading-day return. The stock will begin trading on the Nasdaq on Thursday.  

• Highwire Capital’s $2.50/share offer for SGRP is 60% higher than previous bids, raising concerns about financing.
• Founders William Bartels and Robert Brown sold significant SGRP shares below offer price, undermining confidence in the transaction.
• SGRP’s stagnant business faces challenges with declining EBITDA margins and volatile free cash flow, impacting valuation.

• We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
• Highest spreads: Lifestyle China (2136 HK), Arcadium Lithium (ALTM US), Shanghai Henlius Biotech (2696 HK), ESR Group (1821 HK), Get Nice Financial Group Ltd (1469 HK), Canvest.
• Lowest spreads: Renewable Japan (9522 JP), Macromill, Inc (3978 JP), Fuji Soft Inc (9749 JP), Nec Networks & System Integr (1973 JP), Capitol Health (CAJ AU), Elematec Corp (2715 JP). 

• The Sep24 Nikkei 225 Rebal was odd. They could have done 3. They did 2. For now, I still see 2 IN and 2 OUT for the Mar25 Nikkei225 Rebal.
• There is also a DOUBLE-capping event for Fast Retailing which on 8% outperformance could become a TRIPLE-capping event. For now, the trade is shaping up to be US$7bn a side.
• There is still a tech bent to potential ADDs. Some Consumer Goods stocks need stock splits to get in. Longer-term, the TOPIX Methodology Rejig is an interesting problem set.

• TSMC’s N2 Progress Sparks Buzz Amid Yield Improvement Rumors; If True Then 2nm Will Become Even More Successful Than 3nm
• Hon Hai & TASA Showcase Homegrown Space Technologies Including an Alternative to Starlink
• Himax: Buyback Program Lifts Shares; Auto Display Controllers, AR Displays & WLO for AI Progressing 

• SOUTHBOUND gross trading activity rebounded about 20% this week vs the previous week. Net buying was a little lower but still strong. Market volumes overall in HK remain weak.
• Alibaba Group Holding (9988 HK) was again the top buy and EV names XPeng (9868 HK) and BYD (1211 HK) were bought, but tech as a whole was sold.
• I continue to expect HK-listed tech to see ongoing buying. Alibaba, Tencent, Xiaomi, etc are safe havens against Trump tariffs as they don’t compete in the US. 

• Rubrik, cybersecurity company and leader in the segment of enterprise backup and recovery software solutions, delivered a high quality beat and raise in 3QFY25.
• Stock indicated up 20%+ during regular trading session on heavy volume. Rubrik raised guidance for FY25 total revenue to $861M at the midpoint, implying ~37% growth.
• Moreover, the company generated positive FCF, achieved strong growth at scale and surpassed $1B+ in subscription ARR, a big milestone.

• WSTS is revising up Semiconductor demand for 2024 and 2025, AI demand higher than expected. Taiwan AI Server ODM revenues are still booming, impressive numbers.
• Samsung and SK Hynix expediting new LPDDR “In Memory Processing” for Nvidia in 2026. TSMC forecast AI demand 3x increase to 2026.
• Intel 18A low yield and low density brings new light on management reshuffle. TSMC N2 is ~20% ahead. Apple trying its own 5G modem, again.

• Private Equity Interest: Worldline has attracted early-stage interest from private equity firms, including Bain Capital, driven by its discounted valuation and extensive market presence in Europe.
• Market Challenges: Worldline’s stock declined over 50% in 2024, with Q3 revenues dropping 1.1% organically, reflecting struggles in Merchant and Financial Services and the need to stabilize growth.
• Valuation and Takeover Potential: Worldline’s current valuation at 4.61x EV/EBITDA offers upside potential, with a €9.00/share target implying an 18.4% return, though profitability recovery remains uncertain.

• Intapp, Inc. concluded its fiscal first quarter of 2025 on a strong note, showcasing substantial growth in cloud annual recurring revenue (ARR) and laying a strong foundation for future expansion.
• A key highlight was the 27% year-over-year growth in cloud ARR, reaching $309 million, which now comprises 74% of the company’s total ARR of $417 million.
• SaaS revenue also increased by 30% year-over-year to $77 million, driving total revenue up by 17% to $119 million.

• TSMC: +23.5% Premium; Decent Level to Short Relative to Historical Trading Range
• UMC: +0.1% Premium; Middle of the Historical Trading Range; Short Interest Rises Again
• ASE: +3.5% Premium; Near Middle of Recent Range, Wait for Better Levels

• DigitalOcean, a cloud infrastructure provider aimed at developers, startups, and SMBs, achieved steady progress in its third quarter of 2024.
• The company reported revenue growth of 12% year-over-year, propelled by the success of its core cloud offerings and substantial gains in its AI/ML platform.
• Despite facing challenges from earlier price adjustments and acquisitions, DigitalOcean demonstrated robust growth in annual run rate revenue of $798.3 million, marking a consistent 12% increase year-over-year.

• The ADDs/DELs for the ASX index family for the December 2024 index rebal event were announced after market close on Friday 6th December 2024.
• There will be one ADD/DEL for both ASX 50 and ASX 200. All of these are perfectly in line with our final expectations.
• In this insight, we take a final look at the flow expectations for each of these index changes.

• Marvell Technology Inc. reported its third quarter of fiscal year 2025 earnings, indicating a mix of positive growth and strategic shifts.
• The company’s revenues reached $1.516 billion, exceeding guidance by $66 million and showing a 19% sequential increase, driven by heightened demand in the AI sector and strong execution.
• On a year-over-year basis, revenue grew by 7%, marking a return to growth, with data center applications, notably in AI, accounting for 73% of total revenues.

• Descartes Systems Group reported solid third-quarter financial performance, showcasing significant growth in revenue and adjusted EBITDA, while expanding its portfolio through strategic acquisitions.
• The company registered a 17% increase in total revenues compared to the same period last year, driven by a combination of organic growth and successful incorporation of newly acquired businesses.
• Organic revenue growth stood at approximately 10%, reinforcing the company’s ability to enhance its offering within existing operations.

• Last week, the Hang Seng Index (HSI INDEX) gained 2.3% an increase while volatility slightly declined by 0.2%. The volatility surface provides the context for last week’s most popular strategies, 
• Low implied volatility and a flat term structure support long volatility strategies and Calendar Spreads. In a bullish sentiment shift, almost half the strategies reflect a bullish view.
• The largest volume trade, an Iron Condor, is a rare example of a strategy generating premium income. This insight provides both aggregate data analysis and drill-down into individual trade parameters.

• nCino, a cloud-based software provider for the financial services industry, reported its third-quarter fiscal 2025 financial results, highlighting both achievements and challenges.
• The company’s revenue grew by 14% year-over year, reaching $138.8 million, with subscription revenue contributing $119.9 million, also a 14% increase.
• Driving this growth was strong sales performance in the U.S. market, particularly within community and regional banks, as well as the enterprise segment.

• Okta Inc.’s recent financial results indicate a nuanced position in the market, marked by both strong performance and ongoing challenges.
• In Q3 of fiscal year 2025, Okta demonstrated robust engagement with large customers, evident from top 10 deals each exceeding $1 million in annual contract value, significantly involving partner ecosystems, which contributed approximately $20 million in annual contract value (ACV).
• A notable portion of this success can be attributed to Okta’s deepening relationships within the U.S. federal vertical, highlighting the public sector as an area of substantial growth potential.

• Salesforce posted a notable third-quarter performance for fiscal 2025, showcasing both strengths and emerging opportunities, albeit facing certain challenges in its transition to newer markets and technologies.
• Revenue for the quarter reached $9.44 billion, marking an 8% increase year-over-year in both nominal and constant currency terms.
• This growth was primarily propelled by robust performance in core segments like the Sales and Service Clouds, which saw double-digit growth.

• SentinelOne’s Q3 FY2025 earnings report highlights a period marked by notable achievements as well as persisting challenges, suggesting both areas of strength and potential risks in the company’s business landscape.
• On the positive side, SentinelOne showed encouraging top-line growth, exceeding their revenue expectations with a yearly increase of 28% to $211 million.
• Notably, the company’s Annual Recurring Revenue (ARR) grew by 29% to $860 million, marking a significant rebound in their net new ARR which increased by 22% sequentially and positively year-over-year by 4%.

• Box, Inc.’s earnings for the third quarter of fiscal 2025 showcased the company’s strategic moves and operational gains, though certain challenges and market conditions were not overlooked.
• In terms of financial performance, Box reported revenue growth of 5% year-over-year, reaching $276 million, a positive indicator given the prevailing economic conditions.
• The company displayed notable operational efficiency with record gross margins of 82% and operating margins of 29%, reflecting solid discipline in managing expenses even as they invested in strategic growth initiatives.

• Zscaler, a leading cybersecurity company specializing in cloud-based security solutions, reported solid financial performance in its first quarter of fiscal year 2025.
• The company’s revenue increased by 26% year-over-year to $628 million, reflecting robust demand for its Zero Trust Exchange platform and AI solutions.
• Bookings growth also accelerated, surpassing 30%, indicating increased customer commitments to its offerings.

• Steady loss of market share to AMD in x86 PC and Server. Single design win for the GPU Max, overall no AI or Accelerator roadmap.  
• Steady deterioration of the financials. Collapse in NON-GAAP Operating Profits, leading to negative Free Cash Flow, leading to increasing Net Debt. 
• Most damaging, IMO was during 3Q24 conference call (1st Nov 2024) when the CFO David Zinsner said: don’t expect a recovery before 2026. CEO Gelsinger was gone 1 month later. 

• If you haven’t heard the news, Pat Gelsinger is “retiring.” The reality is this was not a retirement but a firing of Pat.
• His brief stint of 1386 days was surprising because not only was he the most technically competent CEO of the last few bad apples at Intel, but he was also among the shortest.
• Pat has by no means been perfect, and the conference at UBS kind of showed the frustrations that the board likely had with Pat.

• Apple’s Intelligence service is working towards a launch in China, but is facing challenges with integrating Baidu.
• NXP may be investing a significant amount of money in Karnataka, India.
• Intel’s interim leadership team is bringing together new ideas and industry experience for a promising future, while South Korea and Japan work to mitigate US export controls on HBM.

• Two hours before China Mobile’s pre-conditional voluntary Offer announcement on the 2 December, HKBN Ltd (1310 HK)  flagged a possible separate Offer from I Squared Asia-backed HGC Global Communication (HGC). 
• No price was mentioned, although HKBN and I Squared “are in discussions on the terms of the proposal (including the price).” The media is reporting a HK$5-HK$6/share price range.
• Apart from anti-competition concerns via a HKBN/HGC tie-in; would HGC even get approval from the powers that be to proceed with a merger?

• The KRW 5T-6T valuation and 13x-16x PER look solid compared to local peers like SDS and Hyundai AutoEver, with CNS possibly getting a premium due to its smaller captive stake.
• Instos probably won’t push hard for lock-ups but will aggressively target pricing to secure larger allotments, knowing the company is likely to stick with a market-friendly price.
• On a separate note, I wouldn’t expect much of a NAV discount reduction for LG Corp, as LG CNS’s stake isn’t significant enough to move the needle.

• The long awaited IPO of LG CNS is finally getting ready to be completed in February 2025. The IPO price range is 53,700 won to 61,900 won.
• Expected market cap is between 5.2 trillion won to 6.0 trillion won. At the high end of the IPO price range, the total IPO offering would involve 1.2 trillion won.
• The bankers used three companies including Samsung Sds, Hyundai Autoever, and NTT Data Corp as comps. This is expected to be one of the largest IPOs in Korea in 2025

• Coinbase Global (COIN US) can be the unexpected addition by transition because of a high liquidity score and a close distance below the estimated transition threshold.
• Lennox International (LII US) is the main candidate for addition by migration due to having the highest average mcap score and passing eligibility metrics.
• Illumina Inc (ILMN US) has a muted conviction for addition because of ineligible earnings and a recent deletion from the index.

• Super Micro Computer (SMCI) has been in the spotlight recently, with its stock experiencing wild swings amid developments that have left investors divided.
• On one hand, a special committee investigation concluded there was no evidence of fraud or misconduct, a finding that alleviated fears sparked by Ernst & Young’s resignation as its auditor.
• This positive news was coupled with robust growth in AI-driven revenues, innovative liquid-cooled server solutions, and ambitious manufacturing expansion plans.

• Unisoc secures US$448M in funding to improve development of 5G chips, highlighting the growing importance of 5G technology in the tech industry.
• India aims to attract more electric vehicle manufacturers by expanding incentives, signaling a push towards sustainable transportation solutions.
• Nvidia collaborates with Thailand on AI despite challenges in the data center ecosystem, showing commitment to advancing AI technology globally.

• Waystar Holding,  American provider of mission-critical cloud software to healthcare organizations, completed its IPO in June and raised ~$968M to repay outstanding indebtedness.
• Waystar Holding shares have outperformed the Nasdaq Composite Index (+31.5%) in 2024 with shares up ~44% year-to-date. IPO investors are also up ~44%.  
• I expect downward pressure on the stock as IPO lock-up period ends on December 6th, 2024, and all ~176M Waystar Holding shares will be eligible for trading.  

• Earlier this week, at the UBS Global Technology Conference, Intel CFO and co-interim CEO David Zinsner declared that the company’s “core strategy remains intact”
• Recently onboarded GM of IFS Dr. Naga Chandrasekaran, explained that while 18A remains on track, there are still “many milestones” to be met before it ramps in H225
• He also admitted that 18A is more geared towards HPC, is skewed in favour of Intel Products and that 14A will likely be more suitable for the broader semiconductor ecosystem

• Microchip Technology reported its second-quarter fiscal year 2025 financial results amidst a challenging macroeconomic environment.
• The company faced a sequential net sales decline of 6.2% to $1.164 billion.
• Excluding a $13.3 million benefit from the settlement of a legal matter with a licensee, net sales declined by7.3%.

• Greenidge announced today that it has entered into a definitive agreement to sell its 152-acre Spartanburg, SC property Data Journey for $12.1 million in cash and an 8% profit participation interest in the property’s planned data center.
• Greenidge will provide support to Data Journey in the site development and buildout.
• Greenidge CEO Jordan Kovler said, “Today marks an exciting step forward for Greenidge as our South Carolina property sale to Data Journey represents our first large- scale entrance into the data center space.”