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 Capital Markets

<ul><li>Clorox's recent result was completely below par and the stock has limited scope for growth in the short term.</li><li>Despite the complexities associated with the pandemic, the company managed to deliver a 9% sales growth for fiscal 2021 on a reported and organic basis, reflecting a positive growth in all four reportable segments.</li><li>Rising raw material prices resulted Clorox’s gross margin declining by 200 basis points mainly in the fourth quarter.</li></ul>

Clorox's recent result was completely below par and the stock has limited scope for growth in the short term.Despite the complexities associated with the pandemic, the company managed to deliver a 9% sales growth for fiscal 2021 on a reported and organic basis, reflecting a positive growth in all four reportable segments.Rising raw material prices resulted Clorox’s gross margin declining by 200 basis points mainly in the fourth quarter.

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<div><p><a href="https://www.smartkarma.com/entities/cheerwin" target="_blank" data-smartkarma-citation="entities:31314:1" rel="noopener">Cheerwin (6601 HK)</a> is a leading consumer household care company in China that develops and manufactures a variety of household care, personal care and pet care products. Cheerwin will commence trading on Wednesday, 10 March. Cheerwin priced its IPO at HK$9.20 and <a href="https://inews.hket.com/article/2896489/%E3%80%90%E6%96%B0%E8%82%A1IPO%E3%80%91%E6%9C%9D%E9%9B%B2%E9%9B%86%E5%9C%986601%E6%9A%97%E7%9B%A4%E8%B7%8C2%E6%88%90%E3%80%80%E4%B8%80%E6%89%8B%E8%9D%95%E7%B4%841000%E5%85%83?mtc=40001&amp;srkw=IPO%E6%9C%80%E5%BF%AB%E6%9C%80%E9%BD%8A" target="_blank" rel="noopener">opened around -18% lower</a> at HK$7.52 in the grey market. The poor grey market performance is perhaps unsurprisingly in light of the choppy market conditions. </p></div><div><p>In <a href="https://www.smartkarma.com/insights/cheerwin-group-ipo-initiation-the-itch-of-fate" target="_blank" data-smartkarma-citation="insights:48373" rel="noopener">Cheerwin Group IPO Initiation: The Itch of Fate</a>, we opined that Cheerwin has the right ingredients to offer investors a play on another subsegment of China’s household care industry. We concluded that Cheerwin’s fundamentals are attractive. In <a href="https://www.smartkarma.com/insights/cheerwin-group-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:48633" rel="noopener">Cheerwin Group IPO: Valuation Insights</a>, we noted that the IPO price range is resonable.</p></div><div><div><div class="content-highlight"><p>In many ways, the timing of Cheerwin's listing is unfortunate as <a href="https://www.smartkarma.com/entities/blue-moon-group-holdings" target="_blank" data-smartkarma-citation="entities:29179:1" rel="noopener">Blue Moon Group Holdings (6993 HK)</a>'s shares have derated -18% since Cheerwin launched its bookbuild. Updating for the final IPO net raise, our base-case DCF derived price target of HK$10.15 per share. Our DCF sensitivity analysis shows that the IPO price remains reasonable and the grey market factors in conservative market share and margin forecasts. For investors with a longer-term horizon, we think that the grey market price represents good value. </p></div></div></div>

Cheerwin (6601 HK) is a leading consumer household care company in China that develops and manufactures a variety of household care, personal care and pet care products. Cheerwin will commence trading on Wednesday, 10 March. Cheerwin priced its IPO at HK$9.20 and opened around -18% lower at HK$7.52 in the grey market. The poor grey market performance is perhaps unsurprisingly in light of the choppy market conditions. In Cheerwin Group IPO Initiation: The Itch of Fate, we opined that Cheerwin has the right ingredients to offer investors a play on another subsegment of China’s household care industry. We concluded that Cheerwin’s fundamentals are attractive. In Cheerwin Group IPO: Valuation Insights, we noted that the IPO price range is resonable.In many ways, the timing of Cheerwin's listing is unfortunate as Blue Moon Group Holdings (6993 HK)'s shares have derated -18% since Cheerwin launched its bookbuild. Updating for the final IPO net raise, our base-case DCF derived price target of HK$10.15 per share. Our DCF sensitivity analysis shows that the IPO price remains reasonable and the grey market factors in conservative market share and margin forecasts. For investors with a longer-term horizon, we think that the grey market price represents good value. 

<div><p><a href="https://www.smartkarma.com/entities/cheerwin" target="_blank" data-smartkarma-citation="entities:31314:1" rel="noopener">Cheerwin (6601 HK)</a> is a leading consumer household care company in China that develops and manufactures a variety of household care, personal care and pet care products. At the proposed IPO price range of HK$7.80-9.20 per share, Cheerwin will have a market cap of HK$10,400.0-12,266.7 million ($1.3-1.6 billion). At the mid-point of the IPO price range, the net proceeds are HK$2,663.9 million ($343 million). </p></div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/cheerwin-group-ipo-initiation-the-itch-of-fate" target="_blank" data-smartkarma-citation="insights:48373" rel="noopener">Cheerwin Group IPO Initiation: The Itch of Fate</a>, we opined that Cheerwin has the right ingredients to offer investors a play on another subsegment of China’s household care industry. We concluded that Cheerwin’s fundamentals are attractive. Despite the lack of cornerstone support, we would participate in the IPO due to a reasonable IPO price range. Our base-case DCF valuation is HK$10.04 per share. </p></div></div>

Cheerwin (6601 HK) is a leading consumer household care company in China that develops and manufactures a variety of household care, personal care and pet care products. At the proposed IPO price range of HK$7.80-9.20 per share, Cheerwin will have a market cap of HK$10,400.0-12,266.7 million ($1.3-1.6 billion). At the mid-point of the IPO price range, the net proceeds are HK$2,663.9 million ($343 million). In Cheerwin Group IPO Initiation: The Itch of Fate, we opined that Cheerwin has the right ingredients to offer investors a play on another subsegment of China’s household care industry. We concluded that Cheerwin’s fundamentals are attractive. Despite the lack of cornerstone support, we would participate in the IPO due to a reasonable IPO price range. Our base-case DCF valuation is HK$10.04 per share. 

<div><p><a href="https://www.smartkarma.com/entities/cheerwin" target="_blank" data-smartkarma-citation="entities:31314:1" rel="noopener">Cheerwin (CHEER HK)</a> is a leading consumer household care company in China that develops and manufactures a variety of household care, personal care and pet care products. It is pre-marketing for a Hong Kong IPO to raise up to $400 million, according to press reports.</p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/cheerwin-group-ipo-initiation-the-itch-of-fate" target="_blank" data-smartkarma-citation="insights:48373" rel="noopener">Cheerwin Group IPO Initiation: The Itch of Fate</a>, we opined that Cheerwin has the right ingredients to offer investors a play on another subsegment of China’s household care industry. We concluded that Cheerwin’s fundamentals are attractive. In this note, we present our forecasts and take the first look at Cheerwin's valuation. </p></div></div></div>

Cheerwin (CHEER HK) is a leading consumer household care company in China that develops and manufactures a variety of household care, personal care and pet care products. It is pre-marketing for a Hong Kong IPO to raise up to $400 million, according to press reports.In Cheerwin Group IPO Initiation: The Itch of Fate, we opined that Cheerwin has the right ingredients to offer investors a play on another subsegment of China’s household care industry. We concluded that Cheerwin’s fundamentals are attractive. In this note, we present our forecasts and take the first look at Cheerwin's valuation. 

Blue Moon Group Holdings / Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/blue-moon-group-holdings" target="_blank" data-smartkarma-citation="entities:29179:1" rel="noopener">Blue Moon Group Holdings (6993 HK)</a> is a leading consumer household care company in China.  Blue Moon will commence trading on Wednesday, 16 December. Blue Moon priced its IPO at HK$13.16 and <a href="http://www.aastocks.com/en/stocks/news/aafn-con/NOW.1063245/ipo-news" target="_blank" rel="noopener">opened 14% higher</a> at HK$15.00 in the grey market and last stood at HK$14.90.</p></div><div><p>In <a href="https://www.smartkarma.com/insights/blue-moon-ipo-initiation-laundry-list" target="_blank" data-smartkarma-citation="insights:41086" rel="noopener">Blue Moon IPO Initiation: Laundry List</a>, we stated that on balance we think the positives (market-leading brand, strong margin progression, solid cash generation) outweigh the negatives (declining revenue growth and short-term COVID-19 impact). In <a href="https://www.smartkarma.com/insights/blue-moon-ipo-doing-the-wash" target="_blank" data-smartkarma-citation="insights:45481" rel="noopener">Blue Moon IPO: Doing the Wash</a> we noted that the 1H20 results disclosed in the PHIP show that the Blue Moon has creditably navigated the adverse revenue decline on its core business due to the COVID-19 outbreak by improving margin and cash generation. In <a href="https://www.smartkarma.com/insights/blue-moon-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:46033" rel="noopener">Blue Moon IPO: Valuation Insights</a>, we noted that the IPO price range is attractive.</p></div><div><div><div class="content-highlight"><p>Our base-case DCF derived price target of HK$15.21 per share. As DCF-based target prices are subject to a wide range of variability, we present a sensitivity table to help investors gauge where target prices could head. Our DCF sensitivity analysis shows that the IPO price continues to provide good upside potential. </p></div></div></div>

Blue Moon Group Holdings (6993 HK) is a leading consumer household care company in China.  Blue Moon will commence trading on Wednesday, 16 December. Blue Moon priced its IPO at HK$13.16 and opened 14% higher at HK$15.00 in the grey market and last stood at HK$14.90.In Blue Moon IPO Initiation: Laundry List, we stated that on balance we think the positives (market-leading brand, strong margin progression, solid cash generation) outweigh the negatives (declining revenue growth and short-term COVID-19 impact). In Blue Moon IPO: Doing the Wash we noted that the 1H20 results disclosed in the PHIP show that the Blue Moon has creditably navigated the adverse revenue decline on its core business due to the COVID-19 outbreak by improving margin and cash generation. In Blue Moon IPO: Valuation Insights, we noted that the IPO price range is attractive.Our base-case DCF derived price target of HK$15.21 per share. As DCF-based target prices are subject to a wide range of variability, we present a sensitivity table to help investors gauge where target prices could head. Our DCF sensitivity analysis shows that the IPO price continues to provide good upside potential. 

United States

The Clorox Company produces and markets non-durable consumer products sold primarily through grocery and other retail stores.  The Company's principal products include household cleaning and bleach products, charcoal, cat litter, automotive care products, dressings, and trash bags.  Clorox markets its products in the United States and other countries around the world.

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Clorox Company (CLX US)

Clorox Co - Investment Thesis

Clorox's recent result was completely below par and the stock has limited scope for growth in the short term. Despite the complexities associated...

Baptista Research

Cheerwin Group IPO: Trading Debut

Cheerwin priced its IPO at HK$9.20 and opened around -18% lower at HK$7.52 in the grey market. For investors with a longer-term horizon, we think...

Arun George

Cheerwin Group IPO: Valuation Insights

Cheerwin has launched its HK IPO to raise net proceeds of $343m at the mid-point of the HK$7.80-9.20 price range. The price range is attractive...

Arun George

Cheerwin Group IPO: Valuation First Look

Cheerwin is pre-marketing for an HK IPO to raise up to $400 million, according to press reports. In this note, we present our forecasts and take...

Arun George

Blue Moon IPO: Trading Debut

Blue Moon priced its IPO at HK$13.16 and opened 14% higher at HK$15.00 in the grey market. Our DCF sensitivity analysis shows that the IPO price...

Arun George

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