Daily Brief TMT/Internet: Isupetasys, Taiwan Mobile, Hyundai Autoever , Xiaomi, LG CNS, AvePoint, DataTec Ltd, Internet Initiative Japan, MFE-MediaForEurope, Jaeyoung Solutec and more

• There will be 7 additions and 8 deletions for the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) at the next rebalance to be implemented at the close on 11 December.
• As expected, there are no adhoc inclusions as Samsung Epis Holdings is added to the index to offset the gap created by the Hyundai Heavy/ Hyundai Mipo merger.
• The adds have outperformed the deletes very handily while also outperforming the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) but by a much narrower margin.

• Following multiple amendments to the methodology, there could be 4 changes for the Yuanta/​P-Shares Taiwan Dividend Plus ETF in December.
• Constituent changes along with capping changes will lead to a one-way turnover of 18.1% and in a round-trip trade of TWD 173.2bn (US$5.56bn).
• There are multiple stocks that have same-way or opposite flow from trackers of other Taiwan indices and present some interesting trading opportunities.

• IT trio got in as 1st/2nd screens didn’t fill 200; KRX used 3rd‑stage, pulling in the three names with biggest average daily mkt cap.
• Old buffer rule recycled constituents, but since two years ago Step 3 applies to the whole universe—first shortfall let big IT names like Hyundai Autoever slide in.
• Dec 12 rebalance: ~₩60tn passive flow expected; IT trio volumes high, but joining KOSPI 200 IT index could still trigger noticeable price impact near effective date.

• Xiaomi’s total revenue grew by 22% in 3Q25, which mainly came from the startup vehicle business.
• The company well controls the gross margin of the vehicle business.
• We believe XM has an upside of 60% for the yearend 2025.

• KRX announced changes to KOSPI200 and KOSDAQ150 indices. These changes will be effective from 12 December 2025. 
• In KOSPI200, there are 8 new additions and 8 deletions. Among the new additions include LG CNS, Sanil Electric, Asia Holdings, and Paradise.
• There could be a buying opportunity for LG CNS due to its inclusion in KOSPI200 combined with its attractive valuations and accelerating sales and operating profit growth in 2026. 

• AvePoint is a global subscription software company that helps organizations manage, protect and govern collaboration data sitting in cloud platforms such as Microsoft 365 and other SaaS tools.
• Its platform combines backup, data protection, governance and modernization so that customers can keep using these tools and newer AI features without losing control of security or compliance.
• In 2024 it generated US$330m of revenue, up 22% from 2023, with SaaS contributing roughly 70% of the total and recurring revenue 87%.

Datatec reported strong growth in underlying volume, gross profit and adjusted EBITDA in H126, driving a 43% year-on-year increase in underlying EPADR (uEPADR). The company has benefited from growing demand for cybersecurity and the start of technology refreshes driven by AI adoption. These structural growth drivers support a positive outlook for the remainder of FY26 and into FY27, with management sounding the most optimistic it has in recent years. We have upgraded our forecasts to reflect better operational performance and the positive demand environment, lifting uEPADR by 18.2% for FY26, 21.9% for FY27 and 24.6% for FY28.

• Internet Initiative Japan (IIJ) is a pioneering Japanese IT services provider, well-positioned to capitalize on the country’s accelerating digital transformation. Its core strengths lie in its robust network infrastructure and a comprehensive suite of services spanning connectivity, cloud, and systems integration.
• The company is experiencing solid growth, driven by strong demand for cloud services and large-scale network projects. The mid-term plan targets continued revenue and profit expansion by deepening relationships with its large enterprise and government client base through integrated service offerings.
• While competition from domestic telecoms and global cloud giants is a key challenge, IIJ’s established reputation for reliability, advanced technological capabilities, and loyal customer base provide a solid foundation for sustained growth. However, recent cybersecurity incidents highlight the operational risks inherent in the business.

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• Dual-Class spreads tightened in November, with convergence trades resurfacing as volatility falls and liquidity normalises.
• MFE, Grifols and Henkel offer the cleanest A/B convergence setups into year-end.
• Nordic anomalies persist: Handelsbanken’s extreme premium and SSAB’s micro-discount remain the strongest dispersion opportunities.

• Jaeyoung Solutec is a South Korean manufacturer of high-precision components, primarily serving the mobile, semiconductor, and automotive industries. Its core products include plastic injection molds, semiconductor test sockets, and camera lens modules for smartphones.
• The company has demonstrated a significant financial turnaround, recovering from a substantial net loss in 2022 to achieve profitability in 2023 and 2024. This recovery is reflected in its strong ‘Growth’ and ‘Momentum’ scores, although historical performance has been volatile.
• Future growth is closely tied to the smartphone market, particularly the increasing adoption of high-performance, multi-lens cameras in mid-range models. A recent strategic investment in hybrid Optical Image Stabilization (OIS) equipment aims to capitalize on this trend, specifically targeting Samsung’s Galaxy A series.

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