Daily BriefsTMT/Internet

Daily Brief TMT/Internet: Samsung Sds, Em Tech Co Ltd, Rebellions, GoTo, Tong Hsing Electronic Industries Ltd, Taiwan Semiconductor (TSMC), Tencent, WOM, Qlub and more

In today’s briefing:

  • KOSPI 200 Flow Trading: Those Subject to a Significant Float Rate Change
  • KOSDAQ150 Ad Hoc Index Rebalance: EM-Tech (091120 KS) To Replace SBW Life (151910 KS)
  • KOSDAQ 150: Special Changes (SBW Life Science: Deletion & EM-Tech: Addition)
  • Rebellions: Challenging Nvidia in the AI-Powered Semiconductor Chips
  • GoTo (GOTO IJ) – A Transient State
  • Quiddity Leaderboard TWSE50/100 Jun 23: Tong Hsing in the Spotlight Again
  • Taiwan Short Squeeze Ahead? Taiwan Market Significantly Lagging Philly SOX Index
  • [Tencent (700 HK) Target Price Change]: Recovery Aided by Strong Advertising & In Line Game
  • WOM: 3Q22: More Clarity in Terms of Strategy
  • QR Payment Solution for Restaurant Consumers Qlub Secures US$25M Funding

KOSPI 200 Flow Trading: Those Subject to a Significant Float Rate Change

By Sanghyun Park

  • Samsung SDS and Meritz Financial will welcome a 6%p and 30%p increase, respectively, in the upcoming rebalancing in June.
  • Assuming a K200 tracking fund size of 65 trillion won, they are expected to receive 2.69x and 5.47x ADTVs, respectively. This is enough for us to consider a preemptive position.
  • However, in the case of Samsung SDS, we need to consider potential price correction by the scheduled block deal (1.95%) and develop a multi-phased approach to minimize timing conflicts.

KOSDAQ150 Ad Hoc Index Rebalance: EM-Tech (091120 KS) To Replace SBW Life (151910 KS)

By Brian Freitas


KOSDAQ 150: Special Changes (SBW Life Science: Deletion & EM-Tech: Addition)

By Douglas Kim

  • The Korea Exchange announced special changes in KOSDAQ 150 after the market close today.
  • Effective 28 March, SBW Life Science (151910 KS) will be excluded from KOSDAQ 150 index and Em Tech Co Ltd (091120 KS) will replace it.
  • We expect 20-30% additional upside for EM-Tech from the KOSDAQ 150 inclusion and further downside risk for SBW Life Science from the index exclusion.

Rebellions: Challenging Nvidia in the AI-Powered Semiconductor Chips

By Douglas Kim

  • Established in 2020, Rebellions is a leading AI based fabless startup in Korea. In February 2023, Rebellions launched a new artificial intelligence chip, challenging the global leader NVIDIA. 
  • According to the company, its ATOM chip targets specific tasks, allowing the chip to consume only about 20% of the power of an Nvidia A100 chip on those tasks. 
  • Since the company’s inception, Rebellions raised 122 billion won in funding including 30 billion won from KT. The company was last valued at 350 billion won in June 2022.

GoTo (GOTO IJ) – A Transient State

By Angus Mackintosh

  • Headlines for GoTo 4Q2022 and FY2022 headlines do not tell the whole story, given large one-off charges for goodwill write-downs, without which significant progress has been made towards profitability. 
  • GoTo significantly reduced incentive&product marketing spending in 4Q but also posted decent growth, albeit at a slower pace, with an increasing emphasis on building foundational products to drive future profitability.
  • 1H2023 will see slower headline growth from a COVID base but 1Q2023 should see improving take rates and CM breakeven. This is the transient stage of the long-term GoTo story.

Quiddity Leaderboard TWSE50/100 Jun 23: Tong Hsing in the Spotlight Again

By Janaghan Jeyakumar, CFA

  • In this insight, we take a look at the names leading the race to become ADDs/DELs for the T50 and T100 Indices for the June 2023 Rebalance.
  • As things stand, there do not seem to be any ADDs/DELs for the T50 index or the T100 index.
  • However, with multiple names close to the border and with two more months to the base date a lot of ranks could change.

Taiwan Short Squeeze Ahead? Taiwan Market Significantly Lagging Philly SOX Index

By Vincent Fernando, CFA

  • There’s been a major disconnect between performance of the Philly Semiconductor Index and the Taiwan market recently.
  • Semi optimism has picked up substantially in U.S. markets and institutional favor towards the Taiwan market could improve as a result.
  • We indentify US$1bn+  market cap stocks most under-held by institutions, as well as those who may be most at risk of a short squeeze.

[Tencent (700 HK) Target Price Change]: Recovery Aided by Strong Advertising & In Line Game

By Shawn Yang

  • Tencent reported 4Q22 top line/ bottom line of 0.3%/(3.7%) vs cons. Online ads is stronger, while gaming and G&A slightly missed our est. 
  • We expect that ads will be the main driver, thanks to video accounts. Gaming will have better performance after more approved game codes.
  • We raise 2023 ads growth from 12% YoY to 15% YoY. Raise TP to HK$ 433. Maintain Tencent as one of the top picks in China Internet

WOM: 3Q22: More Clarity in Terms of Strategy

By BOS Research

  • WOM is the fastest growing mobile telecommunications provider in Chile in terms of total subscribers and revenues. 
  • They are a consumer-focused mobile network operator offering mobile voice, data, and broadband services to individuals and small and medium enterprises in Chile.
  • They have grown their market share by positioning themselves as the “value-for-money” provider and are focused on continued growth and profitability in the Chilean mobile telecommunications market.

QR Payment Solution for Restaurant Consumers Qlub Secures US$25M Funding

By e27

  • qlub, a payment solution that splits restaurant bills between customers, has raised US$25 million in a new funding round, bringing its total fundraising to US$42 million.
  • The startup plans to use the new capital to accelerate growth, expand to new markets, and build new value-added services for restaurants and customers on the qlub platform.

  • qlub enables customers to pay their restaurant bills in various options — as a group, splitting, or tipping — without needing an app or registration.


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