Daily Brief TMT/Internet: Softbank Group, Gitlab , VEON, JST Group, Hutchison Telecommunications Hong Kong Holdings, Robot Payment Inc, Telesat , 1Spatial Plc, Weave Communications Inc, PAR Technology and more

• Softbank Group (9984 JP)‘s weight in the Nikkei 225 (NKY INDEX) has broken through 10% and staying there will lead to capping at the March rebalance.
• Nearly half of Softbank Group‘s float is held by passive trackers, and the real float is much lower. Capping will increase the real float by a few percentage points.
• Softbank Group has outperformed the Nikkei 225 (NKY INDEX) significantly over the last 6 months and cumulative excess volume has started to increase sharply. Watch out for pullbacks.

• GitLab shares surged sharply — up roughly 11 % in intra day trading — after market rumors surfaced that Datadog is exploring a potential acquisition offer above $60 per share.
• The news emerged from financial media reports, citing insiders that Datadog is working with bankers to evaluate a bid over $60.
• The spike reflects renewed investor speculation about a takeover possibility, following a prior wave of M&A interest in 2024 when GitLab was reported to have entertained sale discussions.

• Remain long into upcoming earnings release. We maintain our Structural Long rating ahead of VEON’s FY3Q25 results (expected to be released mid-November). Our $78 target price implies 50% upside.
• Kyivstar IPO related and Kyrgyztsan divestiture related one-offs. Reported 3Q25E profit likely includes ~US$250m in non-cash one-offs, comprising ~US$150m related to the Kyivstar listing and ~US$100m from VEON’s Kyrgyzstan divestiture.
• We expect digital growth to remain in the 50% YoY range. Digital revenue growth should continue at a high rate, led by JazzCash in Pakistan and Uklon in Ukraine.

• JST Group (6687 HK) raised around US$270m in its HK IPO.
• It is China’s largest and most popular e-commerce SaaS ERP provider.
• We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.

• Hutchison Telecommunications Hong Kong Holdings (HTHKH) is a major mobile telecommunications operator in the competitive Hong Kong and Macau markets, operating under the ‘3’ brand.
• The company is focused on leveraging its 5G network to drive growth in mobile data services and explore new revenue streams in areas like FinTech, telemedicine, and gaming.
• HTHKH exhibits a strong financial position with a significant net cash balance and a high dividend yield, positioning it as a defensive investment. However, it faces challenges from intense competition and declining revenues in a mature market.

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Key points (machine generated)

• ROBOT PAYMENT, listed on the Tokyo Stock Exchange under ticker 4374, is growing rapidly due to its subscription-based services.
• Approximately 98% of the company’s revenue comes from recurring sources, indicating strong customer retention and expansion.
• In the first half of the fiscal year ending December 2025, ROBOT PAYMENT reported significant revenue growth, maintaining double-digit increases in revenue and profit since its 2021 listing.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only.

Key points (machine generated)

• Telesat has fully funded its Lightspeed satellite constellation and secured multiple customer contracts.
• The geopolitical landscape has increased demand for alternative satellite service providers, benefiting Telesat.
• With a 56-year history, Telesat is recognized as a competitively priced and well-positioned satellite operator.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• 1Spatial Holdings 53.0p £60.87m (SPA.L) The global Location Master Data Management software and solutions provider reports Interims to July.
• Revenue increased 9% to £17.7m with a 50% increase in SaaS Term licenses to £0.8m and ARR grew 11.9% to £19.1m.
• The is EBITDA improved to £2.1m from £2m, while the LBT increased to £0.3m from £0.2m. 

Key points (machine generated)

• Weave Communications is a cloud-based SaaS platform aimed at improving operational efficiency for healthcare practices.
• The company has shown significant growth, transitioning from unprofitability to high-teens CAGR while trading at about 2X NTM EV/Sales.
• Despite strong performance and management, the market undervalues WEAV’s potential, especially in non-dental sectors.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• PAR Technology is aggressively transitioning from a legacy hardware provider to a unified commerce cloud platform for enterprise restaurants, a strategy spearheaded by CEO Savneet Singh since 2019. This involves integrating Point-of-Sale (POS), loyalty (Punchh), ordering (MENU), and payment solutions into a single offering.
• The company’s strategic focus on large, multi-location enterprise clients (QSRs, fast-casual chains) provides a stickier customer base and significant cross-selling opportunities, differentiating it from competitors primarily focused on the more fragmented small-to-medium business (SMB) segment.
• Despite strong revenue growth and an expanding software-as-a-service (SaaS) revenue stream, PAR has a history of significant net losses and negative free cash flow. The path to sustained profitability hinges on successfully scaling its platform, achieving operating leverage, and managing integration risks from recent acquisitions.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.