Daily Brief TMT/Internet: LG CNS, Samsung Electronics, Xiaomi Corp, Takachiho Koheki, Charter Communications and more

• LG CNS reported a successful IPO book building results analysis. The IPO price has been finalized at 61,900 won per share (high end of the IPO price range).
• The demand ratio from the institutional investors was 114 to 1. At the IPO price of 61,900 won, the expected market cap will be 6 trillion won. 
• According to our valuation analysis, it suggests a base case target price of 76,383 won per share, which represents a 23% upside from the IPO price of 61,900 won.

• Samsung Electronics stock has been an underperformer outright and also relative to Kospi200 as an overhang of catalysts has weighed on performance.
• Implied vols are at the 88th percentile over the last 3 years and are at the top of their range relative to Kospi200.
• We recommend 4 different ways to position in front of these catalysts and the large stock buy-back that was announced in November. 

• Trump 2.0 AI policies spark debate and criticism with a focus on nationalism and economic protectionism, dividing opinions.
• China launches new low-altitude economy department to drive future growth, while Apple establishes Shanghai subsidiary to enhance AI integration in the country.
• Nvidia CEO confirms growing CoWoS-L production capacity, but Apple faces crisis in China with 25% drop in iPhone shipments despite market dominance. Vietnam semiconductor push hindered by power supply challenges, prompting Asian countries to counter Trump 2.0’s aggressive policies swiftly.

• Takachiho Koheki (hereafter, the Company) is a trading company highly specialized in electronics technology that has identified the underlying needs of its customers to introduce the world’s cutting-edge electronics products to Japan ahead of competitors.
• With engineering employees accounting for over 40% of its workforce, the Company is a highly specialized technical organization with a total of about 25,000 customer accounts, and its solid customer base is one of its assets.

• In H1 FY2025/3, the Company surpassed initial estimates, reporting consolidated net sales of JPY13,314 mn (+4.6% YoY), operating profit of JPY936 mn (+31.2% YoY), ordinary profit of JPY811 mn (-23.2% YoY), and profit attributable to owners of parent (hereinafter, net profit) of JPY594 mn (-17.2% YoY).

• Author has a long position in CHTR and may buy or sell securities without notice
• Importance of conducting independent research before making investment decisions
• Views CHTR as a opportunity despite competition from FWA, with significant risk-reward potential

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Samsung Electronics announced that it will revamp its executive compensation system to include treasury shares as incentives. Samsung has benchmarked TSMC in terms of paying treasury shares to its employees.
• Samsung Electronics’ decision to revamp its executive compensation system to include treasury shares as incentives aligns the interests of the shareholders along with the company’s management.
• Now that Samsung Electronics has incorporated stock based incentive system, it is likely that other Korean companies that could follow suit.