Daily Brief TMT/Internet: Nexon, Netdragon Websoft, Qualcomm Inc, Taiwan Semiconductor (TSMC) – ADR, BE Semiconductor Industries NV, Team Internet Group , DataTec Ltd, Nippo Ltd, Sundae Bar, i-mobile Co Ltd and more

• Government aims to sell 30.6% NXC stake by 2027 for ₩4T tax revenue, offering NXC a buyback or selling with management control to attract bidders.
• The family won’t buy back the 30.6% stake but may allow partial management rights, with Tencent eyeing that stake—not a full $15B Nexon buyout as Bloomberg suggested.
• Tencent’s targeting that stake chunk only, no control shift, so no mandatory tender offer triggered—at least for now.

• The Hang Seng Internet & IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).
• In this insight, we take a look at potential index changes and capping flows for HSIII index rebal event in September 2025.
• Based on the latest data, we see three ADDs and three DELs and one significant float percentage revision.

• Qualcomm’s recently rumoured desire to acquire UK-listed Alphawave finally came to fruition on June 9 with a US$2.4 billion offer
• Just two days earlier, on June 7, Alphawave announced that the company had disposed of its interest in China-based JV, WiseWave Technology
• What is WiseWave Technology, why did Alphawave invest in it and why is it now divesting that interest prior to the Qualcomm acquisition?

• TSMC May Sales at Record High; Rumored A16 Pricing Underscores Strategic Moat in Advanced Nodes
• Review of Client Roadmaps Shows TSMC Positioned as Indispensable Enabler of AI and Advanced Compute Products
• We Maintain Our Structural Long Rating on TSMC; Inexpensive Despite Recent Rally

• In today’s edition: • ABN Amro | restructuring within Corporate Banking • BE Semiconductor Industries | increases long-term financial targets • Heineken | intends to invest USD 2.75bn in Mexico until 2028 • KPN | VodafoneZiggo secures access to part of Delta Fiber’s network • KPN | CEO denounces ‘populistic discussion’ on high broadband tariffs • InPost | court dismisses motion for injunction against Yodel • DHL | CMA to start DHL/EVRi merger inquiry

Team Internet’s 10-year deal to run the .co top-level domain (TLD) enhances the growth prospects for Domains, Identity and Software (DIS), the group’s highest-quality division in terms of revenue diversity and visibility. Growth prospects may strengthen with ICANN’s planned new Generic Top-Level Domains (gTLD) Program, scheduled for 2026. This is welcome news at a time when visibility for Search is low. Our estimates are unchanged, but we see upside potential to our 55p/share sum-of-the-parts (SOTP) valuation for DIS as prospects strengthen, and believe that the current valuation factors in modest prospects for DIS and Comparison and no value for Search.

Datatec reported strong growth in gross profit, adjusted EBITDA, underlying EPS (uEPS) and cash generation in FY25. Restructuring in prior years has improved the operational efficiency of each division and the supply chain has normalised, allowing customer demand to be met on a timely basis. As digital transformation specialists, the group continues to benefit from strong demand for cybersecurity solutions, hybrid infrastructure and cloud-based solutions, and expects the growing adoption of AI to prompt enterprises to upgrade their IT infrastructure. Increasing confidence in the group’s ability to generate cash supports the ongoing share buyback programme and raised dividend payout target. We have upgraded our FY26 and FY27 estimates to reflect better performance, which in turn lifts our valuation.

• Nippo produced record earnings in FY24, with OP of ¥1,970mil (+2.7% YoY) on sales of ¥44,890mil (+7.1% YoY).
• Thanks primarily to solid growth in order for print circuit boards [PCBs] used in generative AI servers and wafer polishing jigs manufactured in Nippo’s Okinawa factory, sales landed above the firm’s guidance of ¥42,000mil.
• FY25 is the final year of Nippo’s medium-term plan [MTP] which calls for an OP target of ¥2,000mil.

• Sundae Bar (SBAR.L), a Company creating a marketplace for AI Agents, announced its Admission to AIM.
• The Company raised gross proceeds of £2,000,000 at the price of 8 pence per share.
• The sundae_bar platform is intended to streamline the AI ecosystem by creating a unified marketplace; seamlessly connecting AI agents with businesses and individuals. 

• Cumulative Q3 FY07/25 revenue was JPY18.7bn (+14.2% YoY), operating profit JPY4.0bn (+6.5% YoY), net income JPY2.9bn (+11.5% YoY).
• Consumer Service segment revenue reached JPY16.8bn (+18.2% YoY), with a segment profit of JPY3.9bn (+11.3% YoY).
• Online Advertising segment revenue was JPY1.8bn (-13.3% YoY), segment profit JPY121mn (-61.7% YoY), with promotion costs JPY319mn (-14.7% YoY).