Daily Brief TMT/Internet: Meituan, KT Corp, CUBox, Telekomunikasi Indonesia, Intuit Inc, Esker SA, Elan Microelectronics and more

• Meituan (3690 HK) shares hit accounts on Friday, they showed up in the CCASS data. All but about 2.3mm shares worth. Another 248.8mm shares showed up on Monday. 
• That was the Prosus stake, which was expected as of November 2022 (evidently, they did not convert more Tencent shares in the interim. 
• The data tells us some things. It does not tell us much else. Be careful of the details. 

• KT Corp (030200 KS) missed out on inclusion to the MSCI Korea Index at the May 2022 SAIR following a drop in foreign room below 15%.
• Bottoming out at 6.5%, foreign room has started to increase again. The last data point shows foreign room at 14.43%, just shy of the 15% threshold for inclusion eligibility.
• If foreign room increases above 15% in the next three weeks, KT Corp (030200 KS) will be added to the MSCI Korea Index at the May QCIR.

• CUBox is getting ready to complete its IPO in KOSDAQ in May. Given its leading position in the face recognition AI technology, it is expected to generate strong interest.
• CUBox is a leading company in Korea that specializes in artificial intelligence (AI) image recognition.
• The company is offering 1.5 million shares (100% new shares) in this IPO. The IPO price range is 17,200 to 23,200 won. 

• Telekomunikasi Indonesia (TLKM IJ) results reflect a company increasingly digital in nature with legacy services fading away and an increasing focus on building both quality infrastructure and subscribers. 
• Despite losing subscribers last year, customer data consumption picked up and the ARPUs also improved reflecting a more profitable subscriber base. Indihome continues to see growth in its customer base.
• Telkom continues to strengthen its presence in the cloud business and data centres as future growth drivers. Valuations are attractive versus historical levels with strong growth prospects ahead. 

• Intuit Inc.’s share price is now trailing the tech sector.
• Intuit investors relying on Non-GAAP figures should be careful as there are significant risks involved, according to the company’s share price.
• The company’s legacy brands are the key driver behind revenue growth and profitability, says Intuit.

Esker reported FY22 revenue growth of 19% (13% constant currency (cc)), operating profit growth of 29% and normalised diluted EPS growth of 29%. SaaS revenue grew 23% (17% cc) and now makes up 80% of group revenue. Bookings intake increased 19% cc y-o-y on an annual recurring revenue basis, providing support for growth in FY23 and FY24. Management maintained its guidance for FY23; we have trimmed our FY23 forecasts, which sit within the guidance range, and introduce forecasts for FY24. We forecast EPS to decline 1% in FY23 (as the currency benefit and accrual reversal are not expected to repeat) and increase 17% in FY24.

• The PC supply/demand outlook appears to be improving and Elan’s leading position providing touch technologies for PCs and other devices makes it an interesting play on the cycle rebound.
• Elan’s results were recently weak due to industry-cycle factors; its company-specific strengths haven’t been affected and its product leadership makes it well positioned for an industry rebound.
• Just retracing half its distance from 52-week highs would imply 24% upside and an undemanding valuation in our view.