Daily Brief TMT/Internet: Strategy, NVIDIA Corp, JD Industrials, Seagate Technology Holdings PL, E Credible, VK Co Ltd, Soluna Holdings , TeamViewer AG, aka Brands Holding Corp and more

• Strategy (MSTR US)‘s market cap has for near-on five years, traded at a premium to its bitcoin holdings. 
• The backbone of Strategy’s levered strategy is issue new shares or debt, acquire more bitcoins, which in turn, boost the share price. Rinse and repeat. Until the music stops.
• That market cap is now at its widest discount in five years. And chairman Michael Saylor scandalously mooted the company may sell some bitcoins IF the discount persists.

• Pres Trump authorized sales of H200 to China, with unknown conditions attached.  Not clear who the US will agree to sell to, who in China will be “allowed” to buy
• More clear: H20 was not appealing – too under-powered. H200 is above the threshold at 2x the performance of Huawei Ascend 910C. So, Nvidia could find buyers in China.
• H200 could represent 23% upside to Nvidia 2026 revenues (max). But the stock price moved up 1.7% on Monday, down -0.3% yesterday. The market is concerned by bigger issues.

• JD Industrials (7618 HK) raised around US$383m, after pricing in its Hong Kong IPO at the mid-point.
• JDI is a leading industrial supply chain technology and service provider in China in terms of GMV in each year during the Track Record Period, according to CIC.
• We looked at the company’s past performance in our earlier notes. In this note, we talk about the trading dynamics.

• Seagate Technology (STX US), Alnylam Pharmaceuticals (ALNY US) and Western Digital (WDC US) are the top forecasted additions with the highest price surge.
• Trade Desk (TTD US), On Semiconductor (ON US) and Lululemon Athletica (LULU US) are the forecasted deletions with the largest price drop.
• Ferrovial (FER US) can be a surprise addition depending on the treatment of its foreign listing.

• E Credible is a dominant player in the niche market of corporate credit certification in South Korea, providing essential credit risk information on SMEs to large corporate clients for supply chain management.
• The company is poised to benefit from the growing trend of ESG (Environmental, Social, and Governance) integration in supply chains, having proactively developed ESG evaluation services for SMEs, which presents a significant long-term growth driver.
• Despite a challenging recent growth track record and sensitivity to economic cycles, the company maintains a strong financial position with a high net cash balance, a low-capex model, and a commitment to high dividend payouts, offering an attractive yield.

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• Dominant Digital Ecosystem in Russia: VK Co Ltd stands as a leading internet company in Russia, boasting a vast and engaged user base across its social media (VKontakte, Odnoklassniki), email (Mail.ru), and online gaming (VK Play) platforms. This extensive ecosystem provides significant network effects and a rich dataset for targeted advertising, its primary revenue source.
• Strategic Repositioning and State Alignment: The company has undergone a significant transformation, including a name change from Mail.ru Group, a redomiciliation from the British Virgin Islands to Russia, and a delisting from the London Stock Exchange. This strategic shift aligns the company more closely with the Russian government’s objectives for the digital economy, potentially leading to preferential treatment and a more predictable regulatory environment within its core market.
• Geopolitical Headwinds and Governance Concerns: VK’s operations are intrinsically linked to the Russian political and economic landscape. The company and its executives have been subject to international sanctions, which have impacted its access to international capital markets and partnerships. The increasing influence of state-affiliated entities in its ownership structure raises corporate governance concerns for minority investors.

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• TeamViewer is a global leader in remote connectivity solutions, demonstrating consistent revenue growth and high profitability. The company is strategically shifting its focus towards the higher-value enterprise segment to drive future growth.
• The recent acquisition of 1E is expected to enhance TeamViewer’s product portfolio by adding Digital Employee Experience (DEX) capabilities, creating significant cross-selling opportunities and accelerating growth in the corporate customer base.
• Despite a dominant market position, the company faces significant risks from intense competition in a commoditized market, potential cybersecurity threats, and macroeconomic headwinds that could impact its large base of small and medium-sized business (SMB) customers.

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• We are reiterating our Buy rating, $30 price target and projections for a.k.a. Brands after visiting Princess Polly stores in Boston, Long Island and Miami.
• We believe, as we enter the heart of the Holiday party season, Princess Polly is fully prepared and looking very clean, with great offerings, a deepening focus on accessories, and winning key fashion driven items, from dresses, jackets and lounge wear (for the after party).
• Further, there has been material progress in terms of normalizing product flows post the tariff-driven shocks we noticed in our Fall tours.