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• Grab‘s 1Q2024 reflected strong performance from its deliveries and mobility segments despite seasonal headwinds, with growth driven by new initiatives rather than increased incentives, with affordable products leading.
• The company has launched new products in the premium segment, with advanced bookings improving the most recent initiative, while its saver products are increasing spend, frequency, and retention. 
• Another key feature of the 1Q2024 has been the strong performance of groceries, driven by alliances with retailers, and booking higher growth than food deliveries. 

• Generative AI (GAI) helps capex, no doubt. But key question is whether capex can yield to revenue and profits;
• Content creation industry is sure to realize revenue and profits. iQiyi and NetEase already said so with concreate examples;
• Advertising can realize revenue by better matching of ads inventory and perhaps improve inventory utilization.

• Pompeo advises Taiwan to innovate constantly in chip industry to maintain dominance and not be complacent.
• LG Energy Solutions may surpass Panasonic in launching mass production of 46800 batteries, a significant development in the industry.
• Canadian startup CEMWorks is positioning itself as a key player in semiconductors, 5G, and AI with its simulation tool. SDC and LGD lead OLED monitor market with fast growth and gaming focus. China’s internet giants see 1Q24 revenue soar thanks to AI technology.

• Established in 2012, Raspberry Pi is getting ready to complete its IPO in London soon. Raspberry Pi provides small, single-board computers. 
• Raspberry Pi is backed by Sony and ARM Holdings. Nearly 72% of the company’s sales come from commercial customers embedding its products into various consumer devices and other systems. 
• The company generated sales of US$265.8 million (up 41.5% YoY) and operating profit of US$37.5 million (up 87% YoY) in 2023. 

• The Q2 Fiscal Year 2024 was a good quarter for Apple Inc. as they saw growth in several international markets and set numerous records worldwide.
• The company reported revenue of $90.8 billion and an EPS record of $1.53.
• They also announced revenue records in over a dozen countries and regions, and an all-time revenue record in Indonesia.

• In this insight, we take a look at the potential ADDs/DELs for the DAX index and the MDAX index in the run up to the June 2024 index rebal event.
• There could be two regular MDAX changes in June including the long-anticipated deletion of M&A candidate MorphoSys AG (MOR GR). 
• We do not see any changes for the DAX index based on the current numbers.

• Confluent Inc.’s Q1 2024 performance indicates a robust start for the fiscal year, surpassing all guided metrics with a total revenue growth of 25% to $217 Million, a testament to the successful execution of the firm’s strategies, especially amidst a somewhat unpredictable macro-environment.
• Noteworthy in these earnings is the impressive growth of Confluent Cloud, now accounting for over half of the company’s subscription revenue and emerging as the fastest-growing offering with a 45% increase to $107 Million.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Today post-close, Denso Corp (6902 JP) (via BofA) announced a selldown of 78,127,800 shares of Renesas Electronics (6723 JP). This is the latest in a line of block exits.  
• There was the 130mm offering in November last year by INCJ. There was 123mm shares in Jan 2024 by NEC and Hitachi. A month later, 50mm shares from Mitsubishi Electric.
• In general, they have been absorbed, but one hasn’t needed to buy in the market. Some have broken price. Here, the pricing range is aggressive.

• Denso Corp (6902 JP) is looking to raise US$1.39bn from selling a portion of its stake in Renesas Electronics (6723 JP).
• DENSO’s selldown is a small one at just 4.3 days of ADV. While there is an overhang of around 4% of TSO, DENSO will be locked up for 270 days.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• Shift Up (462870 KS) is getting ready to complete its IPO in KOSPI in June 2024. Established in 2013, Shift Up is one of the leading game developers in Korea.
• The IPO price range is 47,000 won to 60,000 won. The IPO offering amount is 340.8 billion won to 435 billion won.
• According to the bankers’ valuation, the market capitalization range of the company ranges from 2.73 trillion won to 3.4 trillion won. This is the second largest IPO in Korea YTD.

• EVs and smart driving systems in China’s car market impacted by price competition, leading to changes in industry dynamics.
• Blue carbon uncertainties could hinder progress towards achieving net-zero goals, says scientist, highlighting need for further research.
• Indian solar firm reducing dependence on Chinese imports for solar components to enhance self-sufficiency, aiming for greater control over supply chain.

• GlobalFoundries Inc. has presented its first quarterly financial results for the fiscal year of 2024.
• Despite facing some challenges, the outcomes have exceeded the guidance ranges indicated in the firm’s fourth-quarter earnings call.
• The industry is showing signs of emerging from a period of inventory correction and uncertainty due to ongoing macroeconomic and geopolitical issues.

• Twilio Inc., a cloud communications platform, had a strong start to the year, exceeding its first quarter guide and reporting $1.04 billion in revenue and $160 million in non-GAAP income from operations.
• The company’s revenue represents a significant year-over-year increase, driven by a record quarter of non GAAP gross profit of $566 million and strong free cash flow of $177 million.
• Twilio has demonstrated disciplined execution across the board, leading to year-over-year growth and profitability.

• Keywords Studios (KWS LN) is in advanced discussions with EQT regarding a 2,550p/share possible cash offer (+1.76p final dividend), which the Board is minded to recommend. PUSU deadline is 15 June.
• Premium (including divi) is c.74%; the implied equity value is c. €2,363 million and the implied EV is c. €2,477 million. The offer seems fair vs. the median of comparables. 
• The offer is pitched at a level that cannot be refused, even considering that Keywords Studios seemed grossly mispriced before the offer from EQT. Gross spread is 11.7%. Long.

• Datadog, during its First Quarter 2024 Earnings, has revealed optimistic outcomes for the quarter.
• A 27% year-on-year increase in revenue at $611 million, surpassing the higher end of company expectations, signaled solid financial growth.
• Furthermore, the increase in the customer base to approximately 28,000, up from about 25,500 during the same period last year, brings a positive outlook for the company.

• The past fiscal year and the final quarter of Electronic Arts (EA) have seen an unexpected increase in growth, bringing more entertainment and deeper experiences to consumers.
• During this timeframe, live services significantly contributed to revenue streams by providing fresh content which translated into long term consumer loyalty and increased spending.
• The past year witnessed the successful launch of EA SPORTS FC, a multi-platform experience which drove strong engagement across experiences due to its ability to connect and engage players globally.

• Match Group’s latest earnings revealed a challenging environment, but also highlighted several growth opportunities for the company in the long-term.
• While acknowledging some headwinds, Bernard Kim, the CEO, emphasized the enduring power of their dating applications, and how they have transformed the way people meet and connect.
• The transcript suggested that despite some users still harbouring a nostalgic preference for organic encounters, dating apps like those created by Match Group have become indispensable tools in today’s dating scene.

• SOUTHBOUND was again a net buyer for HK$18.6bn on strong two-way volumes. The top three net buys of the week were SOE banks. Some may be Central Huijin.
• Some of this may be driven by the dividend w/h tax cancellation on H divs and by significant H-share discounts, but high-div CNOOC was the biggest net sell. 
• No end to the inflows, and HK valuations are not at a place where they would hamper continued flows. Alibaba making HK a Primary will spur more inflows over time.

• BYD Electronics (285 HK) will be added to the Hang Seng Index (HSI INDEX) after market close on 7 June while Country Garden Services (6098 HK) will be deleted.
• Estimated one-way turnover is 1.9% and the estimated round-trip trade is HK$8.46bn (US$1.08bn) with over 1x ADV to trade in the add and delete.
• We remain at 82 index constituents and the road to 100 index members looks to be a long and winding one.

• After Taiwan Semiconductor (TSMC) – ADR (TSM US) N2 technology in 2H25F, A16 technology will be pilot-production in 2H26 and likely unveiled in around 1H27.
• TSMC A16 technology will be utilizing best-in-class backside power delivery solution.
• Si Photonics co-exists with traditional Substrates packages, linked with fiber.

• While historically many new inclusions to the HSI have performed disappointingly after their addition, BYD Electronic (285 HK) looks unlikely to follow such a pattern.  
• Its share price has underperformed YTD, absolute PER valuations are not stretched and forward P/B multiple is only at the historical average level. These provide a good buffer.
• Its industry and business are not at structural and cyclical peaks, with further growth prospects from AI-enhanced products and solutions. A 33% surge in 1Q24 earnings also adds comfort.

• TSMC: +17% Premium; Has Remained Above 15% for Over Nearly Two Weeks
• ASE: +11.8% Premium; We Continue to View 14%+ as Range to Short From
• CHT: +0.6% Premium; Can Consider Shorting the Spread at Current Level

• Arista Networks is well-positioned to take advantage of the rapidly growing opportunities in the artificial intelligence (AI) and cloud computing landscape.
• For the first quarter of 2024, the company reported revenue of $1.57 billion, representing a 16.3% year-over-year growth.
• Contributing a substantial 16.9% of this revenue was services and software support renewals.

• Dolby Laboratories, Inc., a leader in immersive entertainment technologies, posted its Q2 2024 results, providing significant insights into its performance and future outlook.
• The report highlighted that the revenues were on par with their expectations, while the earnings exceeded the forecasted figures.
• However, the full-year guidance remained unchanged.

• Trimble, in the first quarter of 2024 results, highlighted three key areas: performance exceeding expectations, a strategic portfolio highlight involving divestitures and joint venture, and the implementation of its new reporting segments.
• Trimble posted a solid performance with all its three segments surpassing expectations.
• Its annual recurring revenue (ARR) grew 13% organically alongside a strong free cash flow of $227 million.

• Universal Display Corporation reported strong results for its first quarter of 2024.
• The company’s revenue was $165 million, its operating profit was $63 million, and its net income was $57 million or $1.19 per diluted share.
• Its strong start to the year and continuing OLED momentum have led them to raise the lower end of their annual guidance range to now believe that their 2024 revenues will be in the range of $635 million to $675 million.

• The Hang Seng Index benchmark has been expected to see an increase in names and flows to Healthcare. We have only one ADD (IT/tech) and one DELETE.
• But the headlined DELETE candidate in the most recent Quiddity Leaderboard was chosen to be deleted. And the ADD one of our top two.
• Flows are somewhat restrained at capping flows, small name change flows, and then a few FFW/FAF changes to be about 1.9% one-way flows in total.

• The key takeaway from this earning season on the topic of generative AI (GAI) is that in-house generated content has the greatest potential for cost savings;
• Taking a step further, mid-sized video platforms can also use AI to skip the curator layer, similar to Pinduoduo using algorithm to bypass small merchants to connect directly to factories;
• We also notice that general media platforms with ample advertising inventories tend to perform better with AI’s help, which is why ads of Tencent’s advertising performed better than Baidu’s.

• Tencent reported C1Q24 revenue, IFRS operating profit, and IFRS net income in-line, 9.1%, 26% vs. our estimates and in-line, 16%, 21% vs. consensus;
• Game revenues were below our expectations while advertising was above, leading to a gross margin beat of 2.73ppt, powered by video account and AI. 
• We raised our TP to HK$450 to reflect the shift to better-margin revenue mix and upcoming revenue acceleration.

• Tech titans foresee the obsolescence of AI PC by Computex 2024, sparking anticipation for new technological advancements.
• Disney and Warner’s collaboration in the streaming market introduces fresh competition, shaking up the industry landscape.
• ASML’s thriving in the Angstrom Era credits its success to relentless innovation and adaptability within the semiconductor sector.

• Since mid-April we discussed how downside was limited on MSCI ACWI and EURO STOXX 50, and May 2nd discussed it was “quite possible” the lows were in.
• Now, the MSCI ACWI, ACWI ex-US, EAFE, and EM indexes have all broken out to new multi-year highs. Our bullish outlook (since early-November 2023) remains intact; expect higher prices ahead.
• China (MSCI China) continues to lead the EM turnaround, and we remain bullish on the space. We highlight many large-cap EM buys within Communications, Technology, Discretionary; we remain bullish miners.

• KPIT reported a strong Q4FY24 led by 5.1% QoQ revenue growth in constant currency (CC) terms. EBITDA margin came in better than expected at 20.7%.
• Overall, in line with our projection, KPIT even beat its upgraded guidance by posting YoY revenue growth of 39%+ in CC terms vs 37%+ guided.
• KPIT has guided for a strong FY25 with revenue guidance of 18-22% in CC terms and EBITDA margin of 20.5%+.

• CyberArk Software Ltd.
• reported strong first quarter 2024 financial results.
• The company provided earnings per share of $0.75, turning around a loss of $0.17 in the prior year period.

• Paylocity Holdings Corp reported solid results for Q3 2024, with total revenue growth of 18.1%.
• Paylocity credits this trend to their offerings resonating in the market, particularly among the younger generation, due to their investment in meeting the needs and expectations of the modern workforce.
• The company has released new enhancements to their talent acquisition suite to facilitate recruitment, training, and retention of this demographic.

• Microsoft’s China AI teams relocate due to US rules, focusing on Wi-Fi 7 development for improved connectivity and performance.
• Amazon’s stake in Alchip suggests potential synergy in AI tech and expanded market reach, while Kymco launches eco-friendly e-scooter.
• Tencent Cloud partners with BRI and Hi Cloud Indo for banking innovation, while Veolia opens first regeneration plant in China for sustainable water treatment. Tron Future secures funding for counter-drone tech.

• Sea Limited (SE US) booked a strong set of 1Q2024 results from a GMV, revenue and adjusted EBITDA perspective, with fears of greater competition from TikTok failing to materialise. 
• The company has been investing in growth across all segments, with e-commerce driving and digital financial services driving growth but digital entertainment also seeing a return to growth mode. 
• Sea Limited continues to focus on its core competitiveness in pricing, improving service quality, and lowering the cost to serve through SPX Express, with advertising becoming a more meaningful contributor.  

• Taiwan Tech and Nvidia Rally Ahead of Nvidia Earnings Next Week; Microsoft Build Conference Could Showcase Edge AI Copilot
• Hon Hai: Traditional Server Market Now Adding to AI Growth; Expects Market Share Gains in 2024E 
• Asustek: Margin Beat, Guides More Upside; Qualcomm for AI PCs; Why Asus Confident in AI PC Up-Cycle 

• Tokyo Communications Group’s core businesses currently include its Media business, where it plans and develops free game apps for smartphones and uses a portion of the app’s screen space to generate advertising revenue, and its Platform business, where it operates a consultation service based on a pay-as-you-go model.
• The company also functions as an investment company with the aim of achieving company-wide growth while diversifying risks by allocating the cash flow generated by these core businesses into various promising digital businesses.

• The company’s main business at the time of its founding consisted of developing and operating free game apps for smartphones.

• HeartCore Enterprises is an established software development and consulting company based in Tokyo, Japan and operates in five core offerings and solutions.
• These include 1) Content Management in which the core product is HeartCore CMS, 2) Digital Transformation which includes Controlio, myInvenio, Apromore and HeartCore Robo, 3) GO IPO, a consulting service that helps Japanese companies prepare for a U.S. Nasdaq public listing, 4) Sigmaways, that specializes in infrastructure modernization, and 5) other revenues.
• We believe the company is poised for strong growth due to its entry in the U.S. market and solid results from the Go IPO offering.

• GoDaddy’s first quarter results for 2024 demonstrate a strong start to the year and contribute to the positive reputation of the company.
• Notably, through their free cash flow, the company has achieved growth of 26% year-over-year, thanks to their profitable growth model that converts customer value to shareholder value.
• This has been largely driven by a surge in the applications and commerce sector, which has seen bookings growth of 22% and normalized EBITDA margin expansion of 400 basis points.

• Worldline (WLN FP) stock dropped over 60% after disappointing Q3 earnings and reduced guidance for 2023
• Company scrapped medium-term plan through 2024, facing challenges including costly French restructuring and uncertainty about merchant revenues
• Stock considered cheap at 6x multiple of EPS and EBIT in 2025, potential for shares to double or more in next 24-36 months with activist pressure and company hiring advisors. Worldline SA is second-largest merchant acquirer in Europe with focus on merchant, financial, and e-Transactional services.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• ON24 is a cloud-based SaaS platform for digital engagement through webinars and virtual events
• Company has a low valuation and has seen a significant decline since IPO but shows signs of turnaround
• ON24 Elite has generated approximately $171 million in revenue over the last twelve months, making it a high conviction long investment for the author

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Cloudflare Inc., in its Q1 2024 earnings, witnessed a strong start to the year, with the company’s revenues hitting a high of $378.6 million, marking a significant 30% increase on a year-over-year basis.
• The company notched up its large customer base to 2,878 signifying a 33% increment year over-year.
• It successfully added 122 new large customers, concurrently boosting the revenue contribution from this segment from 62% to 67%.

• Post market close tomorrow, Hang Seng Indexes will announce the changes for the Hang Seng Index (HSI INDEX) that will be implemented at the close on 7 June.
• There were no constituent changes to the index in March. We highlight ten profitable and eligible stocks that could be added to the index in June.
• Changes to the Hang Seng Industry Classification System (HSICS) could lead to inclusions for the Information Technology industry while there could also be inclusions for the underweighted Healthcare industry.

• US tariff hike on Chinese electric vehicles, solar cells, and semiconductors could raise costs for clean energy industry in China, affecting competitiveness and growth.
• AT&S to sell medtech PCB factory in South Korea, indicating potential changes in the global supply chain.
• AI rush leading to staffing shortages at companies like Amazon and Google, while India sees surge in AI spending by 2027.

• The Cigniti-Coforge acquisition presents a unique investment opportunity in the IT services sector, with potential for significant returns.
• Coforge plans to acquire a 54% stake in Cigniti Technologies, expanding its presence in digital assurance and AI services.
• The deal is expected to be completed by Q2 of FY25, with an open offer price potentially higher than the current market value of Cigniti shares.

• Inventory levels were at 90 days by the end of 1Q24, returning to a normal level.   
• It is expected to see consecutive QoQ growth throughout 2024, with normal orders observed since 2Q24. 
• Although Chinese mature technology is advancing, current analog capacity still falls short of local demand in China.

• Vitec Software Group AB is the largest Nordic-based vertical market software company with exceptional growth and outperformance compared to peers
• Despite being lesser-known, Vitec has significant potential for growth and is expected to become more well-known internationally, attracting more institutional investors
• Under CEO Olle Backman’s leadership, the company is expected to continue its high organic growth trajectory, offering a promising investment opportunity with a base case target price of ~870 SEK and a potential return of ~55% over the next two years.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Fortinet, the multinational cybersecurity company, has showcased notable financial results for the first quarter of 2024.
• They declared an operating margin increase of a first quarter record of 28.5%, and a record cash flow from operations of $830 million.
• Their adjusted free cash flow margin was also their highest yet at 61%.

• Motorola Solutions, Inc. showcased robust financial performance in the first quarter of 2024, marked by a 10% revenue growth and a significant 27% increase in its earnings per share.
• This strong performance was complemented by an expanded operating margin by 220 basis points and a record first quarter operating cash flow of $382 million.
• The growth was propelled by various segments.

• PTC experienced robust results in this quarter, continuing the positive trend evident in their product portfolio’s resonance with customers.
• Despite changing their mid-term targets, the company has an unequivocal commitment to delivering on its cash flow guidance.
• This will be achieved by updating their mid-term ARR growth objectives, with constant currency ARR growth targeted to be in the low double digits over the mid-term.

• CDW Corporation has reported its Q1 2024 earnings.
• Despite a challenging market environment, gross profit came in at $1.1 billion, while non-GAAP operating income stood at $404 million.
• Gross margin for the period was a Q1 record, demonstrating the resilience of CDW’s underlying profitability and strategic integrity.

• Following HCL Technologies (HCLT IN)‘s fiscal 4Q2024 earning report last month, we have witnessed an acceleration in near-term earnings estimates downgrades.
• Based on near-term momentum indicators, it seems that we are only at the beginning stage of a prolonged period of underperformance.
• HCL Technologies currently trades roughly one standard deviation above its rolling 5-year historic average PE ratio.

• Tencent is due to release Q1 FY24 results today. The earnings call is scheduled for 14:00 SAST
• In this note, we unpack what is priced and how Tencent has performed relative to constituents in the HSTECH index since our last update (29 April).
• We also provide an update on how the discounts of Naspers and Prosus have traded.

• Tencent reported a decent set of results for Q1 FY24. Revenue for the quarter was up 2.8% QoQ and 6.3% YoY, ahead of consensus estimates (2.3% & 5.9%).
• The gross margin came in at 53%, 3 percentage points ahead of consensus, and an increase of 7 percentage points on Q1 FY23.
• The gross margin for the Fintech and Business Services segment, which accounts for 33% of revenue, increased by 12 percentage points to 46% (consensus 42.6%).

• There are 15 stocks in Japan that will be sold by passive trackers at the close on 31 May.
• Short interest has been increasing in these stocks over the last few months and there will be covering on implementation date.
• Cumulative excess volume on all stocks has risen in the last couple of months though the pace of the increase has varied.

• The operating margin in 1Q24 reached the highest since 2Q16, as the gross margins of all businesses improved.
• The growth rate of online advertising is high than our estimate, but the growth rate of FinTech is lower than our estimate.
• We believe there is still an upside of 9% and the price target will be HK$415 for the end of 2024.

• In a surprise move, Intel announced that its foundry chief Stuart Pann is to retire from the company effective end of May after just over one year in the role
• He will be replaced by former IBM, Globalfoundries and Marvell executive Kevin O’Buckley, effective immediately
• Mr. O’Buckley now has the dubious distinction of being the third leader of IFS in as many years. 

• Tencent (700 HK) reported 1Q2024 results today. Both revenues and OP grew 6.3% and 30.0% YoY respectively and beat consensus estimates.
• Though domestic games revenues declined YoY, there were signs of recovery in Tencent’s gaming business. Online advertising saw strong growth despite 1Q being a seasonally weak quarter for Tencent.
• Tencent’s investments in high-margin products have helped boost the company’s margins across all business segments.

• Taiwan launches IC Taiwan Grand Challenge to attract innovative teams and talent, offering opportunities to showcase skills and win prizes.
• Navigating AI investments during upgrades: on-premise or cloud computing? Make informed choices for hardware and software advancements.
• Taiwan’s LEO satellite program readiness questioned; virtual power plants used in Taiwan and Japan to mitigate earthquake risks; TPCA partners with Taiwanese industry association to boost talent and supply chains for Thai electronics manufacturing growth; Intel appoints new head of foundry services.

• Hon Hai reported 1Q24 revenue that fell 9% YoY, however the company reiterated its guidance for significant growth in 2024E and said growth now looks stronger than guided in March.
• Hon Hai’s cloud (including servers) business didn’t grow as much as guided due to material shortages; but AI server revenue up 200% YoY and significant growth is guided for 2024E.
• The traditional server market is rebounding, to grow double digits in 2024E. Hon Hai expects to take market share in 2024. Structural Long but near-term gains could be limited.

• April revenue ~NT$236.02 billion, +20.9% MoM & + 59.6% YoY
• It was the company’s second highest monthly revenue ever, made all the more remarkable by the fact that it occurred during its seasonally low first half year
• Our April YoY Taiwan monthly revenue comps are flashing green across the board with just one exception, Globalwafers

• Arm’s valuation has driven the group NAV to a new high at fiscal year-end in March; with Arm accounting for 45% of group equity value, NAV downside risk is high
• JPY depreciation has been NAV supportive, but this could reverse; SVF2 remains very exposed to financing costs, with 87% of its equity value in private companies
• Softbank shares trade at a 57% discount to the estimated NAV; yet the downside risks to Arm’s valuation, along with SVF2 valuation headwinds, should keep the discount wide

• Asus’s 1Q24 earnings beat consensus by 46% thanks to major increase in operating margin driven by costs optimization. Adjusted Asus brand Op profit rose 227% YoY and 98% QoQ.
• Asus will host a major AI PC launch event May 21st, with additional AI PCs launched at Computex in Taiwan June 4th. Will feature Qualcomm Inc (QCOM US) Snapdragon processors.
• Asus confident in an PC upgrade cycle and has guided for sales to rise and margins to expand in the coming quarters. We maintain our Structural Long rating for Asus.

• ASE plans to boost sales in the second half of 2024 with cutting-edge technology and innovative solutions. Introspect CEO discusses how their GDDR7 memory test system outperforms competitors, helping customers stay ahead of the curve.
• Taiwan’s space dreams face hurdles from regulations and geopolitics, hindering progress. N Chandrasekaran becomes chair of Tata Electronics, signaling entry into semiconductor industry. Indian GaN startup targets global expansion in telecom and EV markets for growth.
• Triton ignites Taiwan’s push for satellite self-sufficiency; Apple partnership speculation with a leading EV startup generates buzz. Lam Research seeks chipmaking tool partners in India to drive innovation and collaboration. #Apple #EVstartup #newsroundup

• UI reported fiscal third quarter (March) results in line with our revenue forecasts suggesting the business could be on the rebound after two years in a challenging environment
• The performance in the June quarter comes even though peers have been reporting a tough selling environment with extended sales process as customers took time to make their decision
• The increase in product availability did backfire in the quarter with Ubiquiti taking a charge for obsolete inventory. Nevertheless, Ubiquiti’s results show a business that is improving

• Immersion Corp. is a high-margin licensing business with no debt and significant cash reserves
• Recent settlement with Meta in patent lawsuit could exceed company’s current enterprise value
• Previous settlements with Apple resulted in significant increase in Immersion’s share price, potential upside not fully reflected in current share price due to limited access to court documents, presenting possible investment opportunity

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Choking off investment is leading to undervaluation of companies like MAPS in the cannabis sector
• MAPS has a dominant position in the market with a strong brand and large user base
• MAPS presents a compelling investment opportunity with potential upside due to its low valuation and ability to capitalize on evolving industry trends and regulations

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

MoneyHero is a leading South-East Asian personal finance aggregator and comparison platform, covering the full suite of personal finance products. Its goal is to educate and empower consumers on personal finance through engaging content and rewards on financial products. The company partners with leading local and global financial institutions to ensure it has the most attractive products and offers for its user base. Management has ambitious plans to grow market share and attractive product verticals, such as insurance. Having raised c $87m in net proceeds from a deSPAC transaction in October 2023, the company paid down all debt and had a net cash position of $68.6m at end FY23, meaning it is well capitalised to fund the acceleration in growth.

• Zoominfo’s stock rose by 24% after hours following positive earnings, attributed to its unique database and high ROI for salespeople
• Challenges such as decelerating sales, shrinkage in the software sector, and competition from copycat companies have impacted Zoominfo’s growth
• The company is looking to bounce back and derisk its story for investors with a strong data offering

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• The latest earnings for Automatic Data Processing (ADP) saw a robust performance of the company’s third quarter fiscal performance for the year 2024.
• Two key figures stood out in the discussion, a 7% revenue growth and a 14% adjusted diluted EPS growth, indicating a solid financial performance despite a competitive business environment.
• Positively, the company achieved strong Employer Services (ES) new business bookings growth, achieving record bookings for the Q3 period, which keeps the company on track for its full-year outlook.

• In May 2023, KDDI Corp (9433 JP) announced a ¥300bn buyback program, did nothing for two months, then announced a Tender Offer Buyback to buy shares from Toyota. 
• Toyota had increased its stake years before, then KDDI bought back shares from others, so Toyota was backing its ownership down. I discussed the relationships, history, etc, here.
• This year, KDDI announced Friday with earnings that is buying back another large stake from Toyota. 

• Naver doesn’t view the sale of its A Holdings stake unfavorably; insiders suggest it’s been planning this move since last year.
• Market speculation suggests Naver was disappointed by Softbank’s rejection of CLOVA X in LINE, prompting plans to sell A Holdings stake for AI development. A sale agreement is expected soon.
• The method through which Softbank secures funds for this acquisition is worth the attention from a short-term trading perspective.

• Automotive display driver IC leader Himax reported 1Q24 results last week that were ahead of guidance. The company also guided for rising margins.
• Management believes 1Q24 represents a cyclical bottom for the company’s financial performance and expects automotive demand to rise in 2H24E.
• Himax rallied but remains 55% below its 2021 highs, yet its market opportunity larger than ever. Himax could be benefitting from different positioning within automotive chips than NXP & Infineon.