Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

QUALCOMM, Inc . manufactures digital wireless communications equipment.  The Company licenses its code division multiple access (CDMA) and orthogonal frequency division multiplexing access intellectual property to other companies, and produces CDMA-based integrated circuits; and produces equipment and software used to track workers and assets; and software for wireless content enablement.

<ul><li>Qualcomm is aggressively pushing into the PC market, aiming to transform its identity from a mobile chip giant to a diversified computing powerhouse.</li><li>At its recent investor day, Qualcomm announced bold revenue projections of $4 billion from PC chips by 2029, alongside significant strides in automotive, industrial IoT, and XR markets.</li><li>This marks a pivotal moment as Qualcomm ventures beyond its traditional smartphone business, which currently accounts for 75% of its chip revenue.</li></ul>

Qualcomm is aggressively pushing into the PC market, aiming to transform its identity from a mobile chip giant to a diversified computing powerhouse.At its recent investor day, Qualcomm announced bold revenue projections of $4 billion from PC chips by 2029, alongside significant strides in automotive, industrial IoT, and XR markets.This marks a pivotal moment as Qualcomm ventures beyond its traditional smartphone business, which currently accounts for 75% of its chip revenue.

Qualcomm’s $4 Billion PC Chip Bet: Can It Dominate Beyond Smartphones?

Technology / Semiconductor / Internet Research

Nicolas Baratte

<ul>
<li>QCOM estimates ~5% Android revenues growth Cagr to FY29, Automotive 22%, IoT 21%. If QCOM keeps Apple business, revenue Cagr will be 9% to FY29. If QCOM loses it: 6%.</li>
<li>Mngt forecasts high Opex control, target at 22% of revenue, which looks aggressive. Opex reached 31% in FY23-24 . At 22% Opex, Operating Profit would grow ~13% Cagr to FY29.</li>
<li>Android growth looks low, Opex control demanding. As such, we could conclude that 10% Operating Profit Cagr is more likely than 13%. Even with lower growth, the stock is cheap. </li>
</ul>


QCOM estimates ~5% Android revenues growth Cagr to FY29, Automotive 22%, IoT 21%. If QCOM keeps Apple business, revenue Cagr will be 9% to FY29. If QCOM loses it: 6%.
Mngt forecasts high Opex control, target at 22% of revenue, which looks aggressive. Opex reached 31% in FY23-24 . At 22% Opex, Operating Profit would grow ~13% Cagr to FY29.
Android growth looks low, Opex control demanding. As such, we could conclude that 10% Operating Profit Cagr is more likely than 13%. Even with lower growth, the stock is cheap. 


Qualcomm Investor Day: Based on Management Forecasts, Best Case 13% Operating Profit Cagr to FY29

Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

Hon Hai Precision Industry / Equity Bottom-Up

Hon Hai Precision Industry Co., Ltd. provides electronic manufacturing services for computers, communications, and consumer electronic products.  The Company's business operations include desktop and notebook PC assembly, connector production, cable assembly, PCB assembly, handset manufacturing, networking equipment, and other consumer electronic devices manufacturing.

<ul><li>LGD plans to invest $1B to expand OLED module production in Vietnam, signaling a commitment to growth in the technology sector.</li><li>Wolfspeed makes a bold move by firing CEO in response to slowdown in the electric vehicle industry, showing a willingness to adapt to market changes.</li><li>MiTAC introduces AIoT innovations for smarter cities and transportation, demonstrating a focus on advancing technology for the future.</li></ul>

LGD plans to invest $1B to expand OLED module production in Vietnam, signaling a commitment to growth in the technology sector.Wolfspeed makes a bold move by firing CEO in response to slowdown in the electric vehicle industry, showing a willingness to adapt to market changes.MiTAC introduces AIoT innovations for smarter cities and transportation, demonstrating a focus on advancing technology for the future.

Tech Supply Chain Tracker (20-Nov-2024): LGD invests $1B in Vietnam OLED production.

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Samsung Electronics Co., Ltd. manufactures a wide range of consumer and industrial electronic equipment and products such as semiconductors, personal computers, peripherals, monitors, televisions, and home appliances including air conditioners and microwave ovens. The Company also produces Internet access network systems and telecommunications equipment including mobile phones.

<ul>
<li>Amid Samsung Electronics announcing a huge buyback of 10 trillion won, one of the issues that has resurfaced is the potential sale of Samsung Electronics by Samsung Life Insurance.</li>
<li>The total amount of Samsung Electronics that could be sold by Samsung Life Insurance and Samsung F&amp;M Insurance is 25.6 trillion won (at current prices). </li>
<li>We remain Positive on Samsung Electronics. The 10 trillion won buyback program is a positive sign on the company's willingness to provide higher shareholder returns.</li>
</ul>


Amid Samsung Electronics announcing a huge buyback of 10 trillion won, one of the issues that has resurfaced is the potential sale of Samsung Electronics by Samsung Life Insurance.
The total amount of Samsung Electronics that could be sold by Samsung Life Insurance and Samsung F&amp;M Insurance is 25.6 trillion won (at current prices). 
We remain Positive on Samsung Electronics. The 10 trillion won buyback program is a positive sign on the company's willingness to provide higher shareholder returns.


A Step Closer to Samsung Life Insurance Finally Selling Its Shares in Samsung Electronics?

Podcast On the Business of Semiconductors, The Circuit

The Circuit

Podcast On the Business of Semiconductors

A Podcast On the Business of Semiconductors. With Jay Goldberg and Ben Bajarin

Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related accessories. The Company also offers payment, digital content, cloud and advertising services. Apple Inc.'s customers are primarily in consumer, small & mid-sized business, education, enterprise and government markets worldwide.

<ul><li>Apple's approach to architecture and design is focused on efficiency and performance per watt, enabling them to deliver high performance in compact form factors.</li><li>The company's functional organization structure allows different teams to work closely together, ensuring seamless integration of hardware, software, and silicon.</li><li>Apple's continuous pursuit of performance is driven by a combination of innovative architecture, design optimization, and collaboration with software teams to push the limits of technology and stay ahead of industry trends.</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.</em></p>

Apple's approach to architecture and design is focused on efficiency and performance per watt, enabling them to deliver high performance in compact form factors.The company's functional organization structure allows different teams to work closely together, ensuring seamless integration of hardware, software, and silicon.Apple's continuous pursuit of performance is driven by a combination of innovative architecture, design optimization, and collaboration with software teams to push the limits of technology and stay ahead of industry trends.This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Episode 94: Chatting Apple Silicon with Apple's Tim Millet and Tom Boger

Insights on Companies in the Apple Supply Chain