In today’s briefing:
- Mediatek 1Q25 6% Beat, Growth Accelerating in 2Q, Large Revenue Opportunity for Data Center ASIC
- WRKR Ltd – Building the platform for strong revenue growth
- MediaTek 1Q25 Earnings: AI Momentum Drives Strength, But 2H Visibility Remains Murky Due to Tariffs
- MediaTek (2454.TT): Tariffs Are Highly Uncertain, but Client Purchasing Hasn’t Changed Much.
- Nasdaq 100 (NDX INDEX) Outlook: Is The Bear Market Over or Not?
- Samsung 1Q25: Already Reported Was Decent, 2Q / 2H Outlook Uninspiring. The Stock Will Remain Cheap
- Infomart Corp (2492 JP): Q1 FY12/25 flash update
- Delta Taiwan Vs. Delta Thailand: Valuation Gap Widens After Strong 1Q25; Why AI Now Needs Microgrids
- ASE Technology: Demand Pull-Ins and Tariff Fears Create an Uneven Outlook for Backend Services
- ASEH (3711.TT; ASX.US): Slight Upside in 2Q25; Uncertainty Expected in 2H Due to Tariffs.
Mediatek 1Q25 6% Beat, Growth Accelerating in 2Q, Large Revenue Opportunity for Data Center ASIC
- Mediatek beats in 1Q, good guidance for 2Q, but close to Consensus. Several positives in 2025: flagship smartphone gains, smartphone AI upgrades, strong WiFi and Connectivity growth, progress in Auto.
- How large is the “sizable revenue” opportunity of data center custom ASICs from 2026? Management sounds increasingly positive / confident. The stock valuations reflect this.
- The stock trades at 18.5x 2025 EPS, 15.5x 2026 EPS, not extravagant but on the high-end. If you have the stock, keep it. If you don’t, TSMC looks more interesting.
WRKR Ltd – Building the platform for strong revenue growth
- Wrkr Ltd (ASX:WRK) offers compliance solutions for Australian superannuation contributions and payroll including member onboarding, super payments, messaging and employee validation.
- WRK’s Q3 FY25 activities report demonstrates a continued balance of cost management (up just 3% against Q3 FY24) against lumpy cash receipts (down 6% against Q3 FY24 but up 39% on Q2 FY25) amidst continued milestone/project work, which should drive revenue in FY26.
- This quarter saw the receipt of a $328k R&D tax credit but also a record capitalised IP spend of $985k as new product development and systems integration continues.
MediaTek 1Q25 Earnings: AI Momentum Drives Strength, But 2H Visibility Remains Murky Due to Tariffs
- MediaTek beat 1Q25 EPS expectations as Smart Edge and mobile segments delivered strong sequential growth; flagship SoC traction supports improved ASP mix.
- AI remains central to strategy: NVIDIA partnership progressing — NT$1bn AI ASIC revenue targeted for 2026.
- Tariff-Driven macro caution clouds 2H outlook, but we maintain Structural Long view — AI, auto, and premium mobile SoCs drive long-term opportunity.
MediaTek (2454.TT): Tariffs Are Highly Uncertain, but Client Purchasing Hasn’t Changed Much.
- 2Q25 guidance is projected to be between NT$147.2bn and NT$159.4bn (midpoint-flat QoQ), with a gross margin expected to range between 45.5% and 48.5%, and operating expenses between 27% and 31%.
- In 2Q25, MediaTek expects mobile to be flat to slightly down, continued QoQ growth in smart edge, and QoQ growth in power ICs.
- Regarding flagship smartphone SoCs, MediaTek remains optimistic about gaining market share and expects the ASP (average selling price) of its next-generation flagship chips to continue rising.
Nasdaq 100 (NDX INDEX) Outlook: Is The Bear Market Over or Not?
- The Nasdaq-100 Stock Index (NDX INDEX) stalled this week. The week is not over yet, but let’s take a closer look at our tactical model to assess short-term scenarios.
- Obviously tariffs will impact the economy but often markets can defy rationality, leading to short-term pain if we’re positioned incorrectly.
- This insight evaluates how far the rally could extend and how deep a pullback might go, this can be of interest to option desks or to anyone looking to hedge.
Samsung 1Q25: Already Reported Was Decent, 2Q / 2H Outlook Uninspiring. The Stock Will Remain Cheap
- Samsung Electronics (005930 KS) already released 1Q25 data, we knew it was a decent quarter on good Smartphone sales. What we didn’t know is how bad Memory was.
- Memory revenues declined sharply -17% QoQ on poor 4.4% OP margins: loss of HBM 2/3 revenues (China ban), no HBM3E, ASP pressure for Commodity DRAM and NAND
- Smartphone is seasonally down in 2Q and HBM3E will start very slowly. A small upside possible on pre-tariff demand but the bigger negative remains Samsung low exposure to AI growth.
Infomart Corp (2492 JP): Q1 FY12/25 flash update
- Sales increased 22.3% YoY to JPY4.3bn, with BtoB Platform Food sales rising 29.5% YoY due to cloud-based management systems.
- Operating profit surged 152.6% YoY to JPY581mn, driven by reduced data center costs and software amortization expenses.
- BtoB Platform ES segment sales grew 10.8% YoY, with increased system usage fees from digitalization and invoicing service adoption.
Delta Taiwan Vs. Delta Thailand: Valuation Gap Widens After Strong 1Q25; Why AI Now Needs Microgrids
- Delta Taiwan delivered record 1Q25 results, driven by strong AI data center demand; EPS beat Bloomberg consensus by 8%.
- Management highlights microgrids as essential for resilient AI infrastructure amid power grid instability, and challenges keeping national power supply up with data center expansion.
- Valuation gap widens sharply: Delta Taiwan trades at 22x PER vs. 60x for Delta Thailand, despite having stronger 2025–2026E growth. Weak macroeconomic situation also makes Delta Thailand highly vulnerable.
ASE Technology: Demand Pull-Ins and Tariff Fears Create an Uneven Outlook for Backend Services
- ASE slightly missed 1Q25 profit expectations; operating margin slipped slightly due to seasonal ATM softness and higher opex from LEAP and test investments.
- LEAP advanced packaging and AI test continue to scale; but still make up only ~6% of revenue; ASE’s exposure to vulnerable mature/legacy chip end-applications remains too high.
- We rate ASE Neutral, vulnerable to global slowdown; citing macro opacity, tariff-related pull-ins, and a non-cheap valuation relative to 2H25 growth uncertainty and risks of a market de-rating.
ASEH (3711.TT; ASX.US): Slight Upside in 2Q25; Uncertainty Expected in 2H Due to Tariffs.
- 2Q25 OSAT revenue is expected to grow 9–11% QoQ, with GM up 1.4–1.8%; EMS revenue is expected to decline 10% YoY with a 1.0% YoY drop in OPM.
- 1H saw some pull-in and shift orders plus seasonal growth, but nothing is certain, including tariff and ASEH investing in US….
- Automotive remains conservative; high-end demand is stronger. Inventory correction continues for low-end products like MCUs. Overall automotive segment is expected to grow YoY.
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