Daily Brief TMT/Internet: Hexaware Technologies, Jack Henry & Associates, Crooz Inc, ASML Holding NV, Mediatek Inc, Tokyo Electron, Qualcomm Inc, Allegro MicroSystems , AppFolio Inc A and more

• In November 2020, HT Global IT Solutions acquired all the shares it did not own in Hexaware Technologies (HEXW IN) and delisted the stock from the NSE and BSE.
• Now, Carlyle Group is looking to raise INR 87.5bn by selling stock at a price range of INR 674-708/share, valuing Hexaware Technologies (HEXW IN) at US$4.8bn.
• The stock will not get Fast Entry to global indices. Inclusion at regular rebalances should take place in May and September, though the impact will be limited.

• Jack Henry is a best in class operator within the vertical market software space
• They sell operating system software for small and mid-sized banks
• Jack Henry focuses on organic growth and their core product

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• Crooz’s Shop-list.com used to be one of the fastest growing online fashion malls in Japan but, just before Covid, it hit a wall and hasn’t recovered since. 
• Now it will be merged with Korean fashion mall, Nugu, and its real value as a database of young female consumers will become clear. 
• This should help Nugu grow to GTVs of ¥100 billion from Japan alone but will leave Crooz as a small bit player in digital services.

• ASML produces lithography systems for printing electronic circuits on chips
• ASML is the only company in the world producing EUV lithography printers
• EUV lithography involves generating light with a very small wavelength and requires complex technology and optics, with challenges in light generation and guiding the light to print circuits on wafers

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

• The upcoming 1Q25 could be relatively flat or slightly higher than 4Q24, which represents a better start than usual due to seasonal effects.  
• The Dimistry 8400/9400 models have been successful sellers, and a new Dimistry 9500 is expected to be launched after the first half of 2025. (link)
• The China electronic household subsidy program, including smartphone, has resulted in over 8 million sales in shipments within 4 days on Jan 25.

• Cautious 2025 outlook: SEAJ and other Japanese SPE firms have toned down 2025 expectations. TEL mentions a flat total end-demand.
• In 2024, spending was concentrated in leading edge (AI) and China. In 2025, Intel and Samsung Logic Capex declines, China should decline. The bright spots are TSMC and HBM Capex.
• Consensus expectations are low, but rightly so. The stock is at average PEx. Neutral territory.

• Top Chinese cloud platforms are supporting DeepSeek as AI changes the landscape of cloud intelligence.
• Meta and Google are pushing forward with smart glasses development, overcoming obstacles in the Asian supply chain.
• SiPh progress is exceeding TSMC’s expectations, heating up the optical communication CPO market earlier than anticipated.

• Pretty good Dec-24 quarter (1Q25), ~10% above expectations. Decent Mar-25 (2Q25) guidance, ~5% above expectations. The stock is down after hours, because?
• FY25, I estimate Mobile revenues up ~10% YoY, Auto ~30%, IoT ~20%. QCOM said that Licensing revenues will be flat. Total revenue growth ~12% YoY, I expect similar for FY26.
• Conclusion: nothing exciting, management reiterates big non-mobile revenue targets by 2029 (US$22bn) but downside from Apple Modem ending in 2027. In the meantime the stock is properly valued.

• Allegro MicroSystems reported third-quarter fiscal year 2025 revenues of $178 million, exceeding the midpoint of its guidance.
• The company posted a non-GAAP earnings per share of $0.07, also above the anticipated outlook.
• Despite these accomplishments, the company’s quarterly sales declined 5% sequentially and 30% year-over year.

• AppFolio Inc. reported strong financial results for the fourth quarter and full year 2024, showcasing notable growth and strategic advancements.
• Fourth quarter revenue increased by 19% year-over-year to $204 million, contributing to a 28% annual growth, resulting in total revenue of $794 million for the year.
• The company’s non-GAAP operating margin more than doubled from the previous year to 25%, attributed to strategic execution and operational efficiencies.