Daily Brief TMT/Internet: NetEase , Tata Technologies, Mks Instruments, Credo Technology Group Holding, InnoScience Suzhou Technology, Paysafe Ltd, Wex Inc, UL Solutions Inc, Elastic NV, Toyota Motor and more

• China announced game approval for the December batch. The number of games approved remained at a higher level than 2023.
• The pace of China game approval appears to have accelerated to the same level as pre-tightening. There have been 47% more games approved in 2024 compared to 2023.
• Of the companies that we are monitoring, Netease got one approval.

• This insight explores the semiconductor industry’s fundamental building blocks, focusing on India’s role and target segments within the value chain.
• The Indian government has committed INR 76,000 crore to establish a self-reliant semiconductor manufacturing ecosystem.
• Key investments are being made in semiconductor manufacturing, focusing on design, assembly, testing, and packaging capabilities.

• MKS Instruments, Inc. reported a robust third quarter for 2024, with performance largely surpassing expectations.
• The company achieved revenue of $896 million, marking a 1% sequential increase, driven predominantly by gains in semiconductor and electronics and packaging markets.
• This growth was reflected in a gross margin of 48.2%, which was higher than anticipated due to favorable product mix and operational leverage.

• Credo Technology Group Holding Ltd. reported strong financial and operational performance for the second quarter of fiscal year 2025.
• The company recorded a revenue of $72 million, indicating a sequential increase of 21% and an impressive 64% year-over-year growth.
• The robust revenue figures were largely driven by vibrant demand across its three core product lines: Active Electrical Cables (AECs), optical Digital Signal Processors (DSPs), and line card retimers.

• InnoScience Suzhou Technology (2577 HK) is anticipated to debut at the HKEX on 30 December 2024 with a valuation between $3.5bn – $3.9bn.
• InnoScience Suzhou Technology (2577 HK) is forecasted to fail the fcap threshold in the first place for both global indices due to small size offering and lock-ups.
• The security is expected to be added in China all-world or small-cap at the September 2025 review following the 6-month lock-up expiry.

• Paysafe is undergoing a turnaround after a significant decrease in value since its post-IPO high
• The company generates cash and benefits from growth opportunities in the igaming sector
• Despite high leverage and a substantial PE shareholder overhang, the stock has potential for significant upside if the turnaround is successful

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.

• WEX Inc., a provider of corporate payment solutions, reported financial results for the third quarter of 2024, showing a mixed performance with certain areas of strength and others facing challenges.
• The company experienced a 2% increase in total revenue year-over-year, reaching $665 million, while adjusted net income per diluted share rose by 7% to $4.35.
• However, this performance fell short of internal expectations, primarily due to issues within the Mobility segment, stemming from macroeconomic factors like declining fuel prices and certain operational challenges.

• UL Solutions delivered robust financial performance in the third quarter of 2024, with revenue and key financial metrics showcasing both strengths and areas for potential improvement.
• The company reported revenue of $731 million, representing an 8.1% increase, and maintaining an organic growth of 9.3%.
• This growth was driven significantly by the Industrial and Consumer segments, reporting organic growth rates of 11.7% and 9.2%, respectively.

• Elastic N.V. reported robust financial results for the second quarter of fiscal year 2025, showcasing notable progress in revenue growth and sales execution after a challenging first quarter.
• The company’s total revenue reached $365 million, marking an 18% year-over-year increase.
• Elastic Cloud, a significant component of its subscription services, experienced a 25% growth, highlighting customer preference for cloud-based solutions.

• Taiwan government concerned about reducing foreign tech R&D subsidies due to budget cuts, jeopardizing innovation in the industry.
• Japan commits significant investment of $638 million into Rapidus chip mass production, aiming to strengthen its position in the semiconductor market.
• South Korea proposing creation of KSMC based on TSMC’s model to boost semiconductor production capabilities, following global trends in the industry.