HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/haier-smart-home-co-ltd-b3ef445f-0f54-4586-8c58-9073de98d60e" target="_blank" data-smartkarma-citation="entities:31105:1" rel="noopener">Haier Smart Home (6690 HK)</a>'s acquisition of Carrier commercial refrigeration business is earnings accretive. It will also be strategically positive to its growth outlook. </li>
<li>With net cash of Rmb17.3bn, HSH has no problem funding the deal internally. Instead of earning a single-digit return on cash, the business' 9% earnings yield is attractive. </li>
<li>The transaction will extend HSH's application scenarios from household to commercial while elevating its competitiveness in Europe and allowing it to capture the B-end customers. </li>
</ul>



Haier Smart Home (6690 HK)'s acquisition of Carrier commercial refrigeration business is earnings accretive. It will also be strategically positive to its growth outlook. 
With net cash of Rmb17.3bn, HSH has no problem funding the deal internally. Instead of earning a single-digit return on cash, the business' 9% earnings yield is attractive. 
The transaction will extend HSH's application scenarios from household to commercial while elevating its competitiveness in Europe and allowing it to capture the B-end customers. 


Haier Smart Home (6690 HK): Further Expansion of Footprint

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

Baptista Research

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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.

<ul><li>Carrier Global managed to surpass the revenue as well as the earnings expectations of analysts.</li><li>Carrier Global achieved double-digit growth in light commercial and commercial HVAC and worldwide truck and trailer controls and aftermarkets.</li><li>Growth in Fire & Security was broad-based, encompassing security, residential, commercial, and industrial fire.</li></ul>

Carrier Global managed to surpass the revenue as well as the earnings expectations of analysts.Carrier Global achieved double-digit growth in light commercial and commercial HVAC and worldwide truck and trailer controls and aftermarkets.Growth in Fire & Security was broad-based, encompassing security, residential, commercial, and industrial fire.

Carrier Global Corporation: 4 Major Catalysts Of Their Growth! - Financial Forecasts

<ul><li>Carrier Global’s results for the last quarter were an all-around beat and its cash flows, earnings, and sales were in line with the expectations of the management.</li><li>It delivered organic sales growth supported by double-digit growth in commercial HVAC and light commercial, trailer and global truck, and after-market.</li><li>Carrier made progress in its innovative Lynx platform and has launched various new capabilities this quarter.</li></ul>

Carrier Global’s results for the last quarter were an all-around beat and its cash flows, earnings, and sales were in line with the expectations of the management.It delivered organic sales growth supported by double-digit growth in commercial HVAC and light commercial, trailer and global truck, and after-market.Carrier made progress in its innovative Lynx platform and has launched various new capabilities this quarter.

Carrier Global Corporation: Benefitting From Improvements In Supply Chain & Pricing – Key Drivers

Credit

<ul><li>Carrier Global Corporation is a major provider of heating, ventilating, and air conditioning (HVAC), refrigeration, fire, security, and building automation technologies across the globe.</li><li>With supply chains generally improving, Carrier Global generated strong free cash flow over time.</li><li>Among other major updates, the company completed the acquisition of the global light commercial and residential HVAC business of Toshiba.</li></ul>

Carrier Global Corporation is a major provider of heating, ventilating, and air conditioning (HVAC), refrigeration, fire, security, and building automation technologies across the globe.With supply chains generally improving, Carrier Global generated strong free cash flow over time.Among other major updates, the company completed the acquisition of the global light commercial and residential HVAC business of Toshiba.

Carrier Global Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report

<ul><li>This is our first report on global HVAC major, Carrier Global Corporation.</li><li>On the heels of the continued traction on pricing, Carrier delivered quite high organic sales growth in the quarter, and importantly, it continues delivering double-digit aftermarket organic growth.</li><li>Among other major updates, the company completed the acquisition of the global light commercial and residential HVAC business of Toshiba.</li></ul>

This is our first report on global HVAC major, Carrier Global Corporation.On the heels of the continued traction on pricing, Carrier delivered quite high organic sales growth in the quarter, and importantly, it continues delivering double-digit aftermarket organic growth.Among other major updates, the company completed the acquisition of the global light commercial and residential HVAC business of Toshiba.

Carrier Global Corporation: Initiation of Coverage – Acquisition Of Toshiba’s HVAC Business & Other Drivers

United States

Carrier Global Corporation manufactures HVAC equipment. The Company offers heating, air-conditioning, and refrigeration solutions. Carrier Global serves customers worldwide.

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Carrier Global (CARR US)

Haier Smart Home (6690 HK): Further Expansion of Footprint

Haier Smart Home's acquisition of Carrier's commercial refrigeration business is financially beneficial and strategically advantageous, expanding...

Osbert Tang, CFA

Carrier Global Corporation: 4 Major Catalysts Of Their Growth! - Financial Forecasts

Carrier Global managed to surpass the revenue as well as the earnings expectations of analysts. Carrier Global achieved double-digit growth in...

Baptista Research

Carrier Global Corporation: Benefitting From Improvements In Supply Chain & Pricing – Key Drivers

Carrier Global’s results for the last quarter were an all-around beat and its cash flows, earnings, and sales were in line with the expectations...

Baptista Research

Carrier Global Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report

Carrier Global Corporation is a major provider of heating, ventilating, and air conditioning (HVAC), refrigeration, fire, security, and building...

Baptista Research

Carrier Global Corporation: Initiation of Coverage – Acquisition Of Toshiba’s HVAC Business & Other Drivers

This is our first report on global HVAC major, Carrier Global Corporation. On the heels of the continued traction on pricing, Carrier delivered...

Baptista Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Haier Smart Home (6690 HK): Further Expansion of Footprint

​Haier Smart Home's acquisition of Carrier's commercial refrigeration business is financially beneficial and strategically advantageous, expanding...

Osbert Tang, CFA

Carrier Global Corporation: 4 Major Catalysts Of Their Growth! - Financial Forecasts

Carrier Global managed to surpass the revenue as well as the earnings expectations of analysts. Carrier Global achieved double-digit growth in...

Baptista Research

Carrier Global Corporation: Benefitting From Improvements In Supply Chain & Pricing – Key Drivers

Carrier Global’s results for the last quarter were an all-around beat and its cash flows, earnings, and sales were in line with the expectations...

Baptista Research

Carrier Global Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report

Carrier Global Corporation is a major provider of heating, ventilating, and air conditioning (HVAC), refrigeration, fire, security, and building...

Baptista Research

Carrier Global Corporation: Initiation of Coverage – Acquisition Of Toshiba’s HVAC Business & Other Drivers

This is our first report on global HVAC major, Carrier Global Corporation. On the heels of the continued traction on pricing, Carrier delivered...

Baptista Research

Haier Smart Home's acquisition of Carrier's commercial refrigeration business is financially beneficial and strategically advantageous, expanding...