In today’s briefing:
- Crypto Biweekly – After UST, Is USDT Next to Fall?
- FTSE China 50 Index Rebalance Preview: Adds, Deletes & Capping Changes
- Delhivery IPO Trading – Anchor Book Was Good but Overall Demand Was Still Tepid
- Next Chip IPO Preview
- Long Intel/Short AMD; Analysis of Technical Publications Suggests TSMC Will Play a Critical Role
- S&P BSE Indices: No Changes for SENSEX; 7 ADDs/DELs for BSE 100 in June 2022
- HANA: Robust EV Demand Will Offset Global Smartphone Decline
Crypto Biweekly – After UST, Is USDT Next to Fall?
- The collapse of UST/LUNA wiped out nearly USD50bn of market capitalization last week due to a poorly structured stable-coin design and threw the crypto markets into chaos
- A potentially bigger risk looms on the horizon as USDT’s collateral is questioned as market test its ability to meet redemption requests
- USDT is a USD70bn stablecoin, 5x as large as UST, and underpins the entire crypto infrastructure. This is the critical space to watch for the future of crypto.
FTSE China 50 Index Rebalance Preview: Adds, Deletes & Capping Changes
- We expect China Railway Group Ltd H (390 HK) and Yanzhou Coal Mining (1171 HK) to replace Smoore International (6969 HK) and Sunny Optical (2382 HK) in the FTSE China50 Index.
- There are capping changes that have a reasonable large impact on a couple of stocks. One-way turnover is estimated at 3.97% and will result in a one-way trade of HK$1,912m.
- FTSE has increased the investability weight for Li Auto (2015 HK) / Li Auto Inc. (LI US) and this leads to the stock failing the median liquidity test.
Delhivery IPO Trading – Anchor Book Was Good but Overall Demand Was Still Tepid
- Delhivery raised around US$680m in its India IPO, the company is backed by a host of financial investors, the largest being Softbank.
- Delhivery is an online logistics service provider which covers express parcel delivery, heavy goods delivery, part truckload (PTL) freight, truckload (TL) freight, supply chain solutions, cross border solutions etc.
- We have covered various aspects of the deal in our earlier notes. In this note, we talk about the demand and trading dynamics.
Next Chip IPO Preview
- Next Chip (396270 KS) is getting ready for an IPO in Korea in June. The IPO price range is from 9,900 won to 11,600 won.
- Next Chip is a Korean system semiconductor company for automobiles and autonomous vehicles. Next Chip was split from NC& Co Ltd (092600 KS) in January 2019.
- The bankers used four companies including Abov Semiconductor (102120 KS), MCNEX Co Ltd (097520 KS), Chips & Media, and Telechips as comps for Next Chip Co.
Long Intel/Short AMD; Analysis of Technical Publications Suggests TSMC Will Play a Critical Role
- Relative underperformance of Intel Corp (INTC US) versus Advanced Micro Devices (AMD US) over the last decade should reverse. We discuss what it would take in the note.
- Intel leads in number and quality of innovations versus AMD in core areas of Design and Manufacturing, but AMD’s use of TSMC has been a huge part of AMD’s outperformance
- If Intel adapts to new realities and uses TSMC (2330 TT) for next-gen products, outperformance versus AMD is highly likely otherwise given TSMC’s very significant lead in manufacturing very doubtful.
S&P BSE Indices: No Changes for SENSEX; 7 ADDs/DELs for BSE 100 in June 2022
- After market close on Friday 20th May 2022, the constituency changes for S&P BSE 100, SENSEX 50, and SENSEX Next 50 Indices were announced.
- There will be no changes for S&P BSE SENSEX and S&P BSE BANKEX Indices in the June 2022 Rebalance.
- These changes will become effective at the open of Monday 20th June 2022. Below is a closer look at each of the names involved in the June 2022 Rebalance.
HANA: Robust EV Demand Will Offset Global Smartphone Decline
- Analyst meeting came out with negative tone. We maintain BUY rating at Bt57.50, based on 21.3xPE’22 (+1SD of 10-yr trading average). Our TP and 22E downwards earnings revisal by 6%
- 2Q22 should be lowest of the year due to declining sales from decrease by 25% in output in Chinese factories.Recommend accumulating shares,due to attractive valuations, prior to 2H22 earnings recovery.
- 2H22 earnings will recover from GPM expansion from revenue contribution from new SiC segment (consistently gross loss until now)and better product mix in IC Thai factory.Sales should also grow moderately
Before it’s here, it’s on Smartkarma
