Daily Brief TMT/Internet: Taiwan Mobile, Tencent, Lam Research, Pony AI, Synspective, DreamArts , Millicom Intl Cellular-Sdr, Freelancer Ltd, Insight Enterprises and more

• The TDIV index tracks the top 50 names in the Taiwan Stock Exchange with the highest dividend yields. It is a yield-weighted index with unique capping rules.
• In this insight, we take look at Quiddity’s expectations for index changes and capping flows for the TDIV Index for the December 2025 index rebal event.
• We expect at least six index changes for the TDIV index. On top of that, there will be capping flows too.

• China announced game approval for the October batch. The number of games approved remained at a higher level than 2023.
• The pace of China game approval appears to have accelerated to the same level as pre-tightening.
• Of the companies that we are monitoring, none got approval.

• LAM beats largely Sept-25 (15% above), Dec-25 guidance slightly above (4%), long-term drivers are concrete: $100bn in Data Center = 8bn in semi equipment, $40bn of NAND equipment to upgrade.
• LAM is gaining share (depo / etch growing faster than litho), is ahead in the new stuff (Moly ALD, dry resist EUV). YTD Net Income is up 44%. Very impressive.
• Among Semi Equipment stocks, LRCX is the best performer YTD: up 88%. LRCX is trading at +2.5 standard deviations: 30x forward EPS versus average 17x. Time to sell.

• Pony AI is a leading autonomous vehicle (AV) technology company with a strategic dual focus on the US and Chinese markets, developing Level 4 autonomous driving systems for robotaxis and commercial trucking.
• The company is in a high-growth, pre-profitability phase, marked by surging revenues from its expanding robotaxi services and technology licensing, but also significant cash burn due to heavy R&D and operational investments.
• Key catalysts include the mass production of its cost-efficient 7th-generation hardware, strategic partnerships with major automotive OEMs like Toyota and Stellantis, and a planned secondary listing in Hong Kong to fund future expansion.

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• Synspective is a Japanese space-tech company specializing in the development and operation of a constellation of Synthetic Aperture Radar (SAR) satellites, known as StriX. The company provides SAR data and value-added analytical solutions to government and commercial clients for applications such as disaster monitoring, infrastructure management, and urban planning.
• The company is in a high-growth phase, aiming to expand its satellite constellation to 30 satellites by the latter half of the 2020s to enable near real-time global observation. This expansion is capital-intensive, reflected in the company’s current unprofitability and negative cash flows.
• The satellite-based Earth observation market is experiencing robust growth, driven by increasing demand for geospatial data and advancements in satellite technology. Synspective is well-positioned to capture a share of this expanding market, particularly in the Asia-Pacific region, but faces intense competition from established and emerging players.

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• DreamArts is a high-growth Japanese SaaS provider capitalizing on the domestic digital transformation trend with its flagship no-code platform, ‘SmartDB®’, which targets non-IT personnel in large enterprises.
• The company has demonstrated a strong financial track record, with significant revenue growth, margin expansion, and robust cash flow generation over the past three years.
• Management has set an ambitious medium-term target to exceed JPY 10 billion in sales by 2028, driven by the continued adoption of ‘SmartDB®’ and a strategic focus on empowering ‘citizen developers’.

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• Millicom is a leading telecommunications operator in nine Latin American markets, demonstrating strong market share and brand recognition under the ‘TIGO’ name. The company is well-positioned to capitalize on the growing demand for data and digital services in the region.
• A strategic shift to focus exclusively on Latin America, coupled with targeted acquisitions and a disciplined approach to cost management, has improved profitability and cash flow generation. The company’s focus is now on deleveraging its balance sheet.
• Key risks include significant exposure to volatile emerging markets, facing political, economic, and currency fluctuation challenges. Intense competition and the high capital expenditure required for network expansion (fiber, 5G) also present considerable hurdles.

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• LRCX reported September 2025 quarter revenues of $5.32 billion, marginally above the guided midpoint, up 3% QoQ and up 27.7% YoY.
• LRCX is forecasting current quarter revenues of $5.2 billion at the midpoint, slightly down sequentially, but up 18% YoY. In other words, the AI boost is coming, just not yet.
• The elephant in the room was once again revenue mix from China which accounted for a whopping 43% of sales, up from 35% in the prior quarter. Oh my!

Freelancer reported essentially flat revenues in Q325 on a lower gross marketplace volume (GMV). Higher take rates in Escrow.com more than compensated for lower volumes, essentially offsetting a small decline in the Freelancer division’s revenue. The company saw good progress in the Loadshift division and has multiple initiatives ongoing to drive growth in the enterprise business. AI-related projects are making an increasing contribution to core marketplace volumes and the company continues to make use of AI tools to improve internal efficiency and platform quality. We maintain our forecasts.

• Insight Enterprises is making bold moves to shore up its position in the fast-evolving cybersecurity and digital transformation space.
• On October 20, 2025, the company announced a definitive agreement—via its Australian subsidiary—to acquire Sekuro, a global cybersecurity and digital resiliency services firm.
• With over 200 professionals and more than 450 certifications across top platforms like Microsoft, AWS, CrowdStrike, Zscaler, and Okta, Sekuro provides 24/7 managed security services, governance, and risk compliance solutions.