Daily Brief TMT/Internet: Appier Group, Samsung Electronics Pref Shares, Samsung Electronics, Apple , Amazon, Capillary Technologies India Ltd (CTIL), Silergy Corp, AXT Inc, QD Laser, Digital Information Technology and more

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

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

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

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

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

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

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

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

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

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

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