In today’s briefing:
- Lens Technology (6613 HK): Offering Details & Index Inclusion
- Domain (DHG AU): 4th August Vote On CoStar’s Offer. Clean Deal
- Lens Technology H-Share Listing: Thoughts on Valuation
- Lens Technology H Share Listing (6613 HK): Valuation Insights
- Samsung 2Q25 Official Leaks: Sharp Decline in Operating Profits, but It’s the Bottom. Really?
- Lucror Analytics – Morning Views Asia
- Fastly Ignites 64% Growth in Emerging Products as Edge Compute Takes Center Stage…
- Taiwan Tech Weekly: Has Samsung Given Up Chasing TSMC?; Xiaomi Tesla-Killer EV Using Key TSMC Chips
- Calix Customer Blitz: Will New BSP Wins Provide A Much Needed Edge?
- Endava plc: How Its Agile & Nearshore Delivery Model Is A Strategic Differentiator!
Lens Technology (6613 HK): Offering Details & Index Inclusion
- Lens Technology (6613 HK)‘s global offering opened yesterday, and the raise could reach up to US$800m if the offer-size adjustment option and the overallotment option are exercised.
- The allocation to cornerstone investors is smaller than in other recent AH listings. The discount of over 25% to the A-shares is attractive given the recent trend for large listings.
- Lens Technology (6613 HK) could be added to a global index in December. Inclusion in Southbound Stock Connect in August and HSCI inclusion could take place in March 2026.
Domain (DHG AU): 4th August Vote On CoStar’s Offer. Clean Deal
- Back on the 9th May 2025, Domain Holdings Australia (DHG AU) entered into a Scheme, at A$4.43/share (in cash), with CoStar, the same terms as the 27th March NBIO.
- Apart from the standard Scheme vote, this needs FIRB to sign off. Nine Entertainment Co Holdings (NEC AU) (60.05% shareholder) is supportive.
- The Scheme Booklet is now out, with a Scheme Meeting on the 4th August, and expected implementation on or before the 27th August. The IE (FGrant Samuel) says “fair & reasonable“.
Lens Technology H-Share Listing: Thoughts on Valuation
- Chinese iPhone glass supplier Lens Technology (6613 HK) has announced the terms for its H-share listing, and plans to raise around US$600m through issuing 262.3m shares.
- The company’s listing is priced at HK$17.38-18.18 per share, at a 25-28% discount to the last close price of the A-shares as of 27th June.
- Our valuation analysis suggests that the company’s H-share offering is priced reasonably compared to domestic and international peers.
Lens Technology H Share Listing (6613 HK): Valuation Insights
- Lens Technology (6613 HK), an industry-leading integrated one-stop precision manufacturing solution provider, has launched an H Share listing to raise US$600 million.
- I discussed the H Share listing in Lens Technology H Share Listing (6613 HK): The Investment Case.
- The proposed AH discount of 24.8% to 28.1% (based on the 27 June A Share price) is attractive, and I would participate in the H Share listing.
Samsung 2Q25 Official Leaks: Sharp Decline in Operating Profits, but It’s the Bottom. Really?
- Samsung doesn’t provide guidance when it reports, but gives revenue an operating profit guidance ~2 weeks before reporting. But we have an officially non-official preview in Korean media.
- 2Q25 operating profit will be “weaker than expected”, declining “by more than 15% from the first quarter” to KRW mid-5 trillion range. Consensus expects +1% QoQ.
- Some positive news to counter balance this large disappointment – smartphone, HBM3E – I am skeptical any of these can lift profits in 2H25, revisit early 2026.
Lucror Analytics – Morning Views Asia
- In today’s Morning Views publication we comment on developments of the following high yield issuers: Softbank Group, New World Development
- US Treasury yields fell yesterday. The UST curve bull flattened, with the yield on the 2Y UST declining 3 bps to 3.72%, while that on the 10Y UST was down 5 bps at 4.23%. Equities climbed to new record highs.
- The S&P 500 rose 0.5% to 6,205, while the Nasdaq advanced 0.5% to 20,370. Contracted sales for China’s Top 100 developers in June declined 23% y-o-y but were up 15% m-o-m at CNY 339 bn, according to CRIC.
Fastly Ignites 64% Growth in Emerging Products as Edge Compute Takes Center Stage…
- Fastly Inc.’s earnings report for the first quarter of 2025 highlighted several key aspects of the company’s financial performance and strategic direction, presenting both opportunities and challenges for investors to consider.
- Positively, Fastly reported revenues of $144.5 million, surpassing their guidance range.
- This represents an 8% increase year-over-year, suggesting positive momentum in their revenue growth, notably higher compared to the previous quarter’s 2% growth.
Taiwan Tech Weekly: Has Samsung Given Up Chasing TSMC?; Xiaomi Tesla-Killer EV Using Key TSMC Chips
- Samsung Said to Have Give Up Chasing TSMC at the Leading Edge of Chip Manufacturing
- Xiaomi’s Tesla-Killer YU7 EV Surges in Orders — TSMC Rides the Wave as Core Chip Supplier
- TSMC (2330.TT; TSM.US): Will Rapidus Threaten TSMC’s 2nm Market? We Think It’s Too Early to Say (II)
Calix Customer Blitz: Will New BSP Wins Provide A Much Needed Edge?
- Calix Inc. reported its first quarter 2025 results, showcasing solid performance, with a clear articulation from its leadership about navigating a dynamic environment in the broadband industry.
- The company, which focuses on providing differentiated broadband experiences through its appliance-based platform, cloud services, and managed service models, recorded revenues of $220 million, reflecting a 7% sequential growth.
- This growth can be attributed to both strong demand and a significant pull-forward from a large customer, which contributed to the quarter’s overperformance.
Endava plc: How Its Agile & Nearshore Delivery Model Is A Strategic Differentiator!
- Endava’s third quarter fiscal year 2025 results reflect a mixed performance impacted by both internal dynamics and external macroeconomic conditions.
- On the positive side, Endava reported GBP 194.8 million in revenue, marking an 11.7% year-over-year increase, demonstrating resilience amidst a challenging environment.
- The company also achieved an adjusted profit before tax of GBP 24.6 million, up significantly from the previous year, translating to a healthy adjusted PBT margin of 12.6% compared to 8.9% previously.
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