Daily Brief TMT/Internet: Murata Manufacturing, Sea , Taiwan Semiconductor (TSMC), Delta Electronics Thailand , ASML Holding NV, Shift Inc, Taiwan Semiconductor (TSMC) – ADR and more

• A group of 7 shareholders are looking to sell 61.3m shares in Murata Manufacturing (6981 JP) to raise JPY 143.8bn (US$916m). That is 3.3% of shares outstanding.
• The shares are being offered at a price range of JPY 2296-2345.5/share, a discount of 5-7% to the last close of the stock.
• With the offering less than 5% of shares outstanding and less than US$1bn in size, there is no immediate passive buying and there could be further weakness in the stock.

• Today after the close, Murata Manufacturing (6981 JP) announced an equity offering worth roughly US$870mm if the stock prices 10% below last. 
• Unlike “regular” secondary offerings, this is available only to overseas investors, and bookbuilding is very quick. This “increases the size” relative to its headline (no retail uptake).
• At 11 days of ADV and 3.3% of shares out, it has a certain size, but the stock is well-owned by foreigners, and not terribly volatile vs Peers.

• In this note, we will take a look at the Asia Pacific IPO pipeline for 2025, with a look at ASEAN, ANZ and ADRs. 
• This list has been compiled on a best effort basis from tracking the company filings and through various other sources.
• The deals you see in this note are only a part of our full IPO pipeline tracker. Feel free to drop us a message for additional information on these IPOs.

• A group of shareholders aim to raise around US$900m via selling around 3% of Murata Manufacturing (6981 JP), in another cross-shareholding selldown.
• The company’s shares haven’t done much over the past few years and recent share price performance as well hasn’t been the best
• In this note, we will talk about the placement and run the deal through our ECM framework.

• December 2024 revenues of NT$278.16 billion, up 0.8% MoM and up a remarkable 57.8% YoY. It was the second highest monthly revenue in the company’s history.
• Q424 revenue amounted to NT$868,460. At the company’s forecasted exchange rate for Q4,  NT$32 to the US$, this amounts to $27.14 billion, the company’s highest quarterly revenue ever
• We expect 2025 to be another growth year for TSMC, likely in the mid to high teens range. Expect Q125 to be down ~5% QoQ based on normal seasonality.

• Delta Electronics Thailand (DELTA TB) is trading at a huge valuation premium to Delta Electronics (2308 TT), though that has narrowed over the last couple of months.
• Delta Electronics Thailand has already been on the Market Surveillance list for 2 months and inclusion for another 2 months will mean SET 50 Index deletion in June.
• A placement by Delta Electronics (2308 TT) is not out of the question and that further increases the downside risk for Delta Electronics Thailand (DELTA TB).

• ASML’s total shareholder return is lagging behind its semicap peers and TSMC
• The company’s share price recently experienced a significant two-day drop
• Despite past reservations, the author sees potential for a good risk/reward opportunity in buying ASML stock due to better pricing and negative investor sentiment on lithography

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.

• Shift Inc (3697 JP) ’s share price went up by about 13% today following the release of its 1QFY08/2025 results yesterday. Share price is up 19% YTD.
• • Shift’s aggressive investment on HR and system reinforcement had resulted in a decline in the company’s margins since 1QFY08/2024, this drove share prices down.
• Shift has once again proved that its business model is resilient and we expect the company’s earnings to continue to see strong growth going forward.

• TSMC Results Today; Arizona Production of 4nm Started, Yield on Par with Taiwan
• TSMC Q424 Earnings Preview, 2025 Outlook & Q125 Look Ahead 
• Delta Taiwan Vs. Thailand Monitor: Convertible Sale; Delta Thailand Should Underperform Vs Parent Co 

• Delta Thailand Weakness Amid Block Trade and Convertible Bond News
• Delta Taiwan Offering Convertible Bonds, Convertible into Delta Thailand Shares
• Delta Thailand Still Overvalued Relative to Delta Taiwan — Short Delta Thailand vs. Long Delta Taiwan