Daily Brief TMT/Internet: Forum Engineering Inc, AAC Technologies Holdings, Xiaomi, Nationz Technologies Inc A, Taiwan Semiconductor (TSMC) – ADR, Navan, BILL Holdings , Upwork Inc, Nihon Denkei and more

• Today after the close, KKR announced a deal whereby they and founder OKUBO Izumi-san would take Forum Engineering Inc (7088 JP) private in an LBO. 
• The process of this deal ticks most all of the “bad process” boxes but the price is pretty good.
• 52% is locked in. Insiders and cross-holders appear to own another 15-18%. This looks like a done deal to me. Money comes 30 December.

• 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.
• The official index changes and indicative weights for the December 2025 index rebal event will be announced publicly after the close on Friday 21st November 2025.
• We continue to expect one index change for December 2025 and we estimate there to be capping flows of ~US$1.9bn one-way.

• Forum Engineering Inc (7088 JP) has recommended a tender offer from KKR & Co (KKR US) at JPY1,710, a 32.6% premium to the last close price.
• The offer is arguably light due to a lack of an auction and is below the midpoint of the target IFA DCF valuation range. 
• However, the offer is attractive compared to precedent transactions, peer multiples and represents an all-time high. The large number of cross-holders will help meet the required tendering rate.

• The Hang Seng Internet & IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).
• We expect one index change in December 2025 translating to capping flows of US$530mn one-way.
• We also expect seven index changes for the next semiannual index review which will take place in March 2026.

• The review period for the December rebalance of the CSI All Share Semiconductor Index ended 31 October. The changes should be announced on 28 November and implemented on 12 December.
• We forecast 3 adds and 6 deletes for the index with a one-way turnover of 1.4% and a round-trip trade of CNY 609m (US$85m).
• The forecast adds have outperformed the forecast deletes over the last few weeks and stocks that have same-way flows from other index trackers could exhibit higher volatility near-term.

• Nvidia Pushes TSMC for More Capacity as AI Chip Demand Surges
• Apple Expands Its Satellite Ambitions for iPhones Beyond Just Emergencies — A Step Towards Disintermediating Telcos?
• Nvidia’s International HQ in Taipei Deal Clears Final Hurdle — Boost for Taiwan 2026E-2027E

• Navan (NAVN US) went public on 30 October 2025 right before the December 2025 cut-off for a US IPO index addition with a current market cap of $4.5bn.
• Inclusion in US indices is expected in December 2025, as the security meets US eligibility criteria before the lock-up expiry.
• Inclusion in Global indices is expected in February 2026, prior to lock-up expiry, and September 2026 following lock-up expiry.

• BILL Holdings shares have bottomed out near $40 per share after Starboard Value and Elliott Management built large stakes in the American SMB back-office pioneer.
• BILL Holding shares significantly underperformed in 2025 with shares down ~44% over the year versus a 21% gain on the Nasdaq.
• I see further room for upside on potential launching new intelligent AI agents, partnerships with software providers, disciplined expense management and operating efficiency.

• Upwork is strategically pivoting to higher-value enterprise clients and leveraging Artificial Intelligence (AI) to drive growth, which is translating into improved profitability and strong cash flow generation.
• The company operates in the rapidly expanding freelance platform market, benefiting from secular tailwinds such as the shift to remote work and the increasing adoption of flexible talent solutions by businesses globally.
• While facing intense competition and macroeconomic sensitivity, Upwork’s established two-sided network of freelancers and clients provides a significant competitive advantage, though its ability to consistently translate this into high returns is still developing.

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• Orders increased 7.6% YoY to JPY66.5bn, while order backlog rose 7.9% YoY to JPY47.5bn.
• Operating profit declined 9.4% YoY to JPY1.2bn, with a gross profit of JPY7.4bn and GPM of 14.1%.
• Nihon Denkei’s earnings forecast for FY03/26 includes sales of JPY124.0bn and net income of JPY3.0bn.