Daily Brief TMT/Internet: Hyundai Autoever , 360 Finance, Inc., Advantest Corp, Amazon, Microsoft Corp, Samsung Electronics, Pine Labs, Nippo Ltd, Mininglamp Technology, Micro Mechanics (Holdings) and more

• With the review period complete, there could be 7 changes for the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) in December.
• There may not be any intra-review changes following the Hyundai Heavy Industries/ Hyundai Mipo merger due to timing and also due to Samsung Biologics‘ spinoff being added to the index.
• The forecast adds have outperformed the forecast deletes and the KOSPI2 INDEX over the last few months and in the short-term too.

• QFIN shares are down ~19% MTD on regulatory concerns in China’s consumer finance sector, though the proposed credit-risk sharing rules may only modestly impact near-term RoE (1–3ppt).
• While speculation over a lower NFRA loan yield cap persists, QFIN’s current yield profile suggests limited sensitivity; any tangible financial impact will depend on actual regulation rollout.
• QFIN’s 0.9x P/B reflects overly bearish loss expectations. Even under a bear case with a 5ppt RoE reduction, the stock offers 56% upside, implying a fair value of $34.

• Nearly every comment on Japanese equities is focused on the half of the market that trades below book, but last week, Advantest, which trades at 18x book, exploded 30%.
• Searches for “AI Bubble” on google are up 90%, but Advantest’s share price exploded because it became clear that investors were underestimating demand for AI related hardware.
• Fear and Hype on both sides proved overdone. When I searched for the truth, I found only 1 red flag, 2 green, and 7 yellow.  

• 3Q25 revenue up 13% YoY, AWS up 20%, Operating Profit would have increased by 25% YoY but 2 one-time charges (FTC and headcount) bring OP flat YoY.
• 2025 Capex revised up from $100bn to 125bn. If Data Center capacity doubles to 2027, that means $205bn Capex in 2027. AWS revenues will double to ~$270bn? Probably yes.
• Next 2 years revenue growth and margins expansion are an AWS story. Valuations are average at 31x forward EPS. Buy more.

• Revenue up 18% YoY. Cloud revenue up 26%. Commercial remaining obligation up 51%. Commercial bookings up 112%. AI capacity up 80% this year, will roughly double over next two years. 
• For a company with $300+bn revenue, that’s impressive. Slight irritant: $4bn loss on OpenAI in a quarter, 13% of net income gone. Is that the price of top line growth?
• The stock is trading at 29x forward EPS, Cloud & AI revenues are accelerating, but profits incl OpenAI loss are probably very thin. The cash cow will come years later. 

• Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
• On the IPO front, there were a flurry of deal launches across Hong Kong and India.
• On the placements front, while the week was rather quiet, we did have a look at the upcoming lockup release.

• Pine Labs (0568874D IN) is looking to list on the exchanges by selling 176.5m shares via a primary and secondary offering to raise US$439m at a valuation of US$2.86bn.
• The price band has been set at INR 210-221/share and could price at the top end of the range. The IPO raise and valuation are sharply lower than earlier reports.
• Inclusion at regular rebalances will commence in May but flow will be small given the low float and the Smallcap indices that it is added to.

• Nippo Ltd. is a specialized trading company with significant manufacturing capabilities, focusing on high-value-added products in the Mobility, Electronics, and Medical & Precision Devices sectors.
• The company is poised to benefit from growing demand in high-growth areas, particularly components for electric vehicles, generative AI servers, and medical equipment, which are key pillars of its medium-term strategy.
• A revised shareholder return policy, increasing the dividend payout ratio to 50%, coupled with a strong growth track record in dividends and market capitalization, signals a commitment to enhancing shareholder value.

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

• Mininglamp Technology (1912140D HK) raised around US$131m in its Hong Kong IPO.
• Mininglamp Technology (formerly known as Leading Smart Holdings), is a data intelligence software provider in China, specializing in transforming enterprises’ marketing and operational decision-making.
• We have looked at the company’s background and pricing in our earlier note, in this note we talk about the trading dynamics.

• We attended Micro Mechanics (Holdings) (MMH SP) AGM in Singapore on 30 October.
• Management also released 1Q26 results which show muted growth. China remains the most important market.
• MMH has no debt, consistently high margins, high ROE’s and a 22-year track record of paying dividends to investors.