Daily Brief TMT/Internet: DeNA, ASR Microelectronics, SK Hynix, Groww, Nintendo, Taiwan Semiconductor (TSMC) – ADR, Sify Technologies , Bel Fuse, Meesho, GDS Holdings (ADR) and more

• Last week, “Murakami Group” (a group of investors who jointly file large shareholder filings) announced a 5+% stake in DeNA (2432 JP). The stock popped. Then they filed again.
• This was not surprising. It has long been known as a “value” name (and has the requisite short balance to prove it). The question is how much value IS there
• The question is how much value IS there. And to whom? It’s an interesting question which deserves a look, so we take a look.  

• With the review period complete, we forecast 2 changes for the SSE STAR50 (STAR50 INDEX) and 7 changes for the STAR100 Index in December.
• We estimate turnover of 4.3% for the SSE STAR50 (STAR50 INDEX) and 6.7% for the STAR100 Index. The estimated round-trip trade is CNY 17.9bn (US$2.5bn).
• The forecast adds to the SSE STAR50 (STAR50 INDEX) have outperformed the forecast deletes with most of the outperformance coming in August. Been a volatile trade since then.

• Change in local limit is a positive for SK Hynix (000660 KS) 
• Those in the local markets had to play SK Square (402340 KS) before
• The risk is that over 1/3 of KOSPI 200 is now reliant on 2 names

• Groww (1573648D IN) is looking to raise around US$747m in its India IPO.Groww, officially called Billionbrains Garage Ventures, is a direct-to-customer digital investment platform providing multiple financial products and services.
• With Groww, customers can invest and trade in stocks (including via IPOs), derivatives, bonds, mutual funds and other products. Customers can also avail margin trading facility and personal loans.
• In our earlier notes, we have looked at the company’s past performance. In this note, we talk about the peer comp and implied valuations in the price range.

• Cycle Execution: Switch 2 launch momentum is strong, with disciplined guidance and improving margins, suggesting Nintendo’s hardware transition is proceeding smoothly and could drive further upward revisions. 
• Earnings Quality: Conservative assumptions, resilient legacy software, and early signs of operating leverage provide visibility into sustainable mid-cycle profitability beyond initial launch dynamics. 
• Valuation & Positioning: Despite a 60% rally and premium multiples, Nintendo remains the purest global gaming IP play, justifying elevated valuation through enduring creative and structural advantages.

• TSMC Sets Sights on 3-10% Price Rises for Advanced Nodes
• MediaTek’s Leap Into the 2nm Era — Leading Edge Node Signals Market Leadership Ambitions
• Mediatek 3Q25: Good News (ASIC Revenue) But Weak Margins Getting Weaker. Stock Not Attractive. 

• Sify Technologies is a comprehensive ICT service and solution provider in India, strategically positioned to capitalize on the country’s digital transformation, with core services in data centers, network, and digital services.
• The company is in a high-growth phase, marked by significant capital expenditures in expanding its data center capacity to meet the burgeoning demand driven by cloud adoption and the advent of AI, leading to near-term pressure on profitability.
• While revenue has been growing, the company faces challenges with net losses and high debt levels, making the successful and timely monetization of its new assets critical for its long-term financial health and shareholder returns.

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

• Bel Fuse’s Class A and B shares have a 25% price spread; historical trends suggest eventual price convergence.
• Lennar’s divestiture of MRP stake offers a 6.38% premium; government shutdown delays SEC approval, affecting exchange timeline.
• LakeShore Biopharma’s privatization offer faces widened spread due to Nasdaq delisting; liquidity issues persist despite 18% upside potential.

• Meesho (1546271D IN) is looking to raise about US$484m in its upcoming India IPO. The deal will be run by Axis, Citi, Kotak, JPM and MS.
• ML is an e-commerce marketplace which offers a wide assortment of products ranging from low cost unbranded products, regional brands and national brands at affordable prices to consumers.
• The platform connects four key stakeholders: consumers, sellers, logistics partners, and content creators. It monetizes its platform through services provided to sellers such as order fulfilment, advertising, and data insights.

• GDS is a leading developer and operator of high-performance data centers in China, strategically positioned to capitalize on the country’s rapid digitalization, cloud adoption, and the burgeoning demand for AI infrastructure.
• The company exhibits a strong growth trajectory, evidenced by consistent year-over-year revenue increases. However, this growth is capital-intensive, leading to persistent net losses and negative free cash flow due to heavy investment in data center construction and expansion.
• Key strategic priorities include expanding its data center footprint in key economic hubs in China and Southeast Asia, managing a high-debt load through innovative financing like C-REITs, and solidifying its relationships with major hyperscale and cloud service provider clients.

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