Daily Brief TMT/Internet: WeDoctor Holdings, Wuhan Dameng Database, NVIDIA Corp, SK Hynix, Zepto, Samsung Electronics, Dassault Systemes , Cognex Corp, ACM Research and more

• We Doctor Holdings, a top-tier provider of AI-enabled medical services and digital platform which connects hospitals, doctors, and pharmacies, plans to go public in Hong Kong.
• We Doctor Holdings has raised ~$1.5B to date from investors, including Tencent, 5Y Capital, Goldman Sachs, Hillhouse Capital, AIA, and Qiming Venture Partners, among others.
• The Hangzhou-based healthtech company has delivered explosive revenue growth of 107% y/y for the six months ended Jun-24.  

• STAR 100 index tracks the next 100 names (51st-150th ranks) and it represents the mid-cap segment of the STAR market.
• The methodology for constituent selection for this index was revised yesterday. These revisions will influence the ADDs/DELs for the March 2025 review which is to be announced soon.
• In this insight, we have presented our updated expectations for the new methodology.

• CEO is clearly saying that demand is growing faster than expected and has visibility into 2025-26 revenues (we have a fairly good line of sight of investment in data centers)
• Models are getting better and using up to 100x more computing power (ie chain of thought and reinforcement learning). The AI market is today Consumer, tomorrow Agentic, later on Physical.  
• The stock is not expensive at 30x FY26 EPS and 24x FY27 EPS. Get over it.

• According to PHIP and Crunchbase, We Doctor’s most recently reported valuation was a ~$411M Series F led by HongShan Capital and Millennium Management at a ~$6.7B post-money valuation.  
• My ballpark estimates suggest that IPO valuation target may be below last round valuation. However, I do not expect a significant discount to Series F post-money valuation of ~$6.7B.
• I think investors will ask what is the revenue growth trajectory ahead (FY25-FY28) and why gross profit margins can’t be higher? What is the path to positive free cash flow?

• Dassault Systèmes CEO highlights European automaker struggles and growth readiness in US and Asia in January 2025.
• SK Hynix achieves impressive 70% yield in HBM4 testing, signaling advancements in memory technology.
• China’s tungsten export controls cause market price fluctuations, disrupting global supply chains. Foxconn partners with Sonora in Mexico for innovative smart city project.

• Quick Commerce offers infinite TAM with rapid metro adoption, but requires endless investment in faster delivery times to remain competitive.
• Delivery partners bear the operational burden, working long hours for modest pay while tech stacks across competitors remain largely similar.
• Despite investor excitement, QC margins remain elusive due to high competition, homogeneous offerings, and limited pricing power compared to food delivery.

• In this insight, we discuss the alpha generation through companies that announced share buybacks in the Korean stock market in January and February 2025.
• There were 37 companies in the Korean stock market that announced share buybacks in the past two months. On average, the share buyback announcements represented 2.3% of outstanding shares.
• Some of the notable share buybacks by Korean companies in the past two months include Samsung Electronics, Celltrion, Hyundai Mobis, and INFOvine.

• Dassault Systèmes has agreed to acquire Contentserv, a provider of AI-driven product information management platforms, for EUR220m, enhancing Centric’s PLM offerings for consumer goods industries.   
• Centric aims to reach EUR500m in revenue by 2028, with goals of becoming a EUR1bn brand. Contentserv is expected to boost Centric’s revenue by 25%, contributing to its growth plans.  
• We deem the integration of Contentserv into Centric will occur gradually. Additionally, Centric will benefit from 3D Universes, an AI-based environment designed to leverage legacy 3D designs and PLM data.

• Cognex is a leader in machine vision, providing ruggedized cameras and software for automation in manufacturing and logistics environments
• Cognex’s products fall into four categories: Guide, Gauge, Inspect, and ID
• ID includes Dataman products for reading barcodes and optical character recognition

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• ACMR is a wafer fabrication equipment company that sells tools to semiconductor fabrication plants
• The company operates in a sector dominated by oligopolies with strong competitive advantages
• The symbiotic relationship between FABS and WFE makers creates barriers to entry for new competitors, providing long-term stability for the industry and companies like ACMR.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.