Daily Brief TMT/Internet: Raksul Inc, Isupetasys, Nintendo, VNET Group, Flagright, Lenovo, Palantir Technologies , DataDirect Networks, Clear Secure and more

• Raksul Inc (4384 JP) is a business roll-up business. They do printing, and advertising, and marketing, and supply. They want to be all things to all SMEs. 
• They are pretty good at it. Revenues and EBIT have been growing at 20-30% a year for years, and are scheduled to grow 19% and 26% for several years ahead.
• The bid is up 40% from last, but that gets them to a 30-month high. The register is very open. Lots of active institutional shareholders who have to agree. Maybe.

• Raksul Inc (4384 JP) has recommended a Goldman Sachs Group (GS US)-sponsored MBO at JPY1,710, a 39.5% premium to the last close.
• While the process is lacking (no auction), the offer is reasonable compared to peer multiples, analyst price targets and historical trading ranges. 
• The offer aligns with the midpoint of the target IFA DCF valuation range. Barring an emergence of an activist, this should get done. 

• In this insight, we discuss the price performance actions of 32 stocks that have been rebalanced in KOSPI200 in 2025.
• Among the 16 additions to the KOSPI200 index in 2025, the average share price performances are up on average 19.5% (3 months performance prior to the announcement dates).
• Among the 16 deletions to the KOSPI200 index in 2025, the average share price performances are down on average 13.5% (3 months performance prior to the announcement dates).

• Rising memory prices are significantly increasing Switch 2 hardware costs, threatening margin compression below expectations and undermining management’s prior guidance on maintaining stable profitability levels.
• Even with potential price hikes, higher ASPs may dampen unit demand, reducing operating leverage and forcing consensus earnings cuts across FY3/27–28 as hardware profitability deteriorates.
• Valuation remains stretched relative to historical norms, leaving limited downside protection if earnings reset lower and increasing vulnerability to sentiment reversals amid uncertain cost trajectories.

• Recent developments materially improve the setup: H200 clarity reduces a major sector overhang and removes uncertainty around chip supply, clearing the way for continued AI-infrastructure expansion in China.
• 3Q25: VNET’s strong result, 2026 outlook, advantaged power resources, and shareholder priorities (no equity dilution and defined leverage limits) reduce downside bottoms-up risk while increasing confidence on execution
• None of this is reflected in today’s valuation. With 25–30% EBITDA CAGR and improved visibility on demand and execution, VNET is positioned for a material 2026 re-rating, implying 60-100% upside.

• Flagright is an AI-native, no-code Anti-Money Laundering (AML) compliance and fraud prevention platform targeting fintechs, banks, and other financial institutions.
• The company’s key differentiator is its use of generative AI and AI agents to automate compliance workflows, significantly reducing false positives and operational costs for its clients.
• Having raised a total of $7.6 million in funding, Flagright is in a growth phase, expanding its product suite and global presence, particularly in North America and Europe.

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• In today’s Convertibles Brief publication we comment on developments of the following high yield issuers: Lenovo
• The iTraxx Main was broadly flat at 53 bps, while the iTraxx X-Over narrowed 1 bps to 255 bps. The US CDX HY widened 3 bps to 323 bps. European bourses were mostly flat to 0.7% lower, except for the DAX (+0.5%), FTSE MIB (+0.3%) and IBEX 35 (+0.1%). In the US, the S&P 500 fell 0.1%, while the Nasdaq gained 0.1%.
• In Asia this morning, the Nikkei is down 0.3%, while the Hang Seng is 0.4% lower. US equity futures are mostly trading higher. WTI and Brent are USD 58.4/bbl and USD 62.0/bbl, respectively.

• The U.S. Navy just signed a $448 million contract with Palantir Technologies to overhaul how it maintains and repairs nuclear submarines.
• This partnership centers on “Ship OS,” a new AI-driven logistics platform built by Palantir.
• It aims to digitize and streamline the Navy’s sprawling and often outdated maintenance and supply chain processes.

• DataDirect Networks (DDN) is a dominant, privately-held leader in high-performance computing (HPC) and artificial intelligence (AI) data storage solutions, uniquely positioned to capitalize on the explosive growth of data-intensive workloads.
• Strategic partnerships, particularly a deep-rooted collaboration with NVIDIA, and a strong presence in the supercomputing sector, provide a significant competitive advantage and a clear runway for growth in the burgeoning enterprise AI market.
• Recent substantial investment from Blackstone, valuing the company at $5 billion, underscores strong investor confidence in DDN’s strategy and its potential for significant revenue acceleration, with the company reportedly on a trajectory to surpass $1 billion in bookings.

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• CLEAR, a pioneer in secure identity solutions, showcased a mix of advantageous and challenging aspects in its latest quarterly results.
• The company reported a year-over-year revenue increase of 15.5%, reaching $229.2 million, and a 14.3% rise in total bookings to $260.1 million.
• The growth figures surpassed previous guidance, indicating strong financial performance.