Daily Brief TMT/Internet: Tokyo Electron, KPIT Technologies, Krafton Inc, Nasdaq-100 Stock Index and more

In today’s briefing:

Tokyo Electron. Betting Big On MAGIC Despite The Downturn
KPIT Tech: Strong Q4FY23 and Upbeat FY24 Guidance
Krafton: India & Improving Shareholder Return Policy Likely to Lead to Further Outperformance
NASDAQ 100 E-Mini Futures (NQ1) – Our 13740 Target Was Achieved Last Week – Ongoing Bullish Bias

Tokyo Electron. Betting Big On MAGIC Despite The Downturn

Q1’23 revenues of ¥558.2 billion, up 19% sequentially and up 1% YoY
FY24 outlook down 23% YoY with H2 showing a modest improvement compared to H1
R&D & CapEx investment increasing significantly while YoY revenue set to decline by 23%

KPIT reported a strong Q4FY23 with 8.5% QoQ growth in CC (Constant Currency) terms. Q4FY23 EBITDA margin at 19.1% came in higher than 18.5%+ expected.
Deal TCV came in highest ever helped by a mega deal of INR $250mm. Even excluding the mega deal, the deal TCV was healthy at $173mm vs $150mm+ typically.
KPIT has guided for an upbeat FY24. FY24 revenue growth is guided to be 27-30% in CC terms. FY24 EBITDA margin is guided at 19-20% vs 18.9% in FY23.

There is a high likelihood of the Indian authorities fully approving the BGMI game after three months of trial. Plus, it has a solid pipeline of new games under development.
Krafton is improving its shareholder return policy. In addition, the consensus is likely to raise the company’s earnings estimates post its excellent results in 1Q 2023.
We maintain our Positive view of Krafton and its shares are likely to continue to outperform the market this year.

At TMA we deliver high probability outcomes by focusing on our 3 pillars of technical analysis. •1) Response to key levels. •2) Price action. •3) Momentum confirmation.
On 27 March 2023 we identified a pending 6.2% upswing in NQ1 and 13740 target. A further bullish outlook would hinge upon the response to 1yr range highs at 13740.
Our interim target at 13740 was achieved and exceeded last week. The weekly close above 13740 identifies an evolving MT uptrend. Interim target at 14350. Potential to 15000+ in 2023.

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