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

Hewlett Packard Co / Equity Capital Markets

<ul><li>HP Inc delivered a mediocre result with a revenue growth of 7% that was below our expectations.</li><li>However, the company’s non-GAAP net earnings increased 71% to $1.2 billion which was far ahead of what the Wall Street had anticipated.</li><li>HP’s strong cash flow generation continued as it generated $1 billion of free cash flow, returning $1.7 billion to shareholders.</li></ul>

HP Inc delivered a mediocre result with a revenue growth of 7% that was below our expectations.However, the company’s non-GAAP net earnings increased 71% to $1.2 billion which was far ahead of what the Wall Street had anticipated.HP’s strong cash flow generation continued as it generated $1 billion of free cash flow, returning $1.7 billion to shareholders.

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

On Friday post market close, S&amp;P Dow Jones announced the results of the March review for the <a href="https://www.smartkarma.com/entities/s-p-500" target="_blank" data-smartkarma-citation="entities:22886:1" rel="noopener">S&amp;P 500 (SPX INDEX)</a> that will be effective after the close of trading on 19 March.There are 4 additions - <a href="https://www.smartkarma.com/entities/nxp-semiconductors-nv" target="_blank" data-smartkarma-citation="entities:9801:1" rel="noopener">Nxp Semiconductors Nv (NXPI US)</a>, <a href="https://www.smartkarma.com/entities/penn-national-gaming-inc" target="_blank" data-smartkarma-citation="entities:5588:1" rel="noopener">Penn National Gaming (PENN US)</a>, <a href="https://www.smartkarma.com/entities/generac-holdings-inc" target="_blank" data-smartkarma-citation="entities:16223:1" rel="noopener">Generac Holdings (GNRC US)</a> and <a href="https://www.smartkarma.com/entities/caesars-entertainment-corp" target="_blank" data-smartkarma-citation="entities:15532:1" rel="noopener">Caesars Entertainment (CZR US)</a>. To balance that out, there are 4 deletions - <a href="https://www.smartkarma.com/entities/flowserve-corp" target="_blank" data-smartkarma-citation="entities:20555:1" rel="noopener">Flowserve Corp (FLS US)</a>, <a href="https://www.smartkarma.com/entities/sl-green-realty-corp" target="_blank" data-smartkarma-citation="entities:1548:1" rel="noopener">Sl Green Realty (SLG US)</a>, <a href="https://www.smartkarma.com/entities/xerox-holdings-corp" target="_blank" data-smartkarma-citation="entities:17585:1" rel="noopener">Xerox Corp (XRX US)</a> and <a href="https://www.smartkarma.com/entities/vontier-corp" target="_blank" data-smartkarma-citation="entities:28857:1" rel="noopener">Vontier Corp (VNT US)</a>.We estimate one-way turnover will be around US$22.4bn and the funding trade will see selling on a lot of the current index constituents.The biggest impact of the changes will be on <a href="https://www.smartkarma.com/entities/nxp-semiconductors-nv" target="_blank" data-smartkarma-citation="entities:9801:1" rel="noopener">Nxp Semiconductors Nv (NXPI US)</a> where we estimate passive funds will need to buy around 11 days of ADV on the stock. The impact on the other stocks is much lower due to the move between the <a href="https://www.smartkarma.com/entities/s-p-500" target="_blank" data-smartkarma-citation="entities:22886:1" rel="noopener">S&amp;P 500 (SPX INDEX)</a> and the S&amp;P Mid Cap 400 indices.

On Friday post market close, S&amp;P Dow Jones announced the results of the March review for the S&amp;P 500 (SPX INDEX) that will be effective after the close of trading on 19 March.There are 4 additions - Nxp Semiconductors Nv (NXPI US), Penn National Gaming (PENN US), Generac Holdings (GNRC US) and Caesars Entertainment (CZR US). To balance that out, there are 4 deletions - Flowserve Corp (FLS US), Sl Green Realty (SLG US), Xerox Corp (XRX US) and Vontier Corp (VNT US).We estimate one-way turnover will be around US$22.4bn and the funding trade will see selling on a lot of the current index constituents.The biggest impact of the changes will be on Nxp Semiconductors Nv (NXPI US) where we estimate passive funds will need to buy around 11 days of ADV on the stock. The impact on the other stocks is much lower due to the move between the S&amp;P 500 (SPX INDEX) and the S&amp;P Mid Cap 400 indices.

S&P500 Index Rebalance: NXPI Is the One to Watch

Director | Exposing Creative Accounting, Bucephalus Research Partnership

Robert Medd

Director | Exposing Creative Accounting

Exposing Creative Accounting

Bucephalus Research Partnership

Bucephalus Research Partnership Limited. Exposing Creative Accounting.

At the Bucephalus Research Partnership (BRP) we analyse financial statements using our accountant's practical experience and our own quantitative algorithms for corporate governance, accounting risk and peer performance.

Our thematic research refines our unique algorithms while our single stock research focuses on examples where we discover a significant gap between published accounts and business reality.

​Bucephalus Research Partnership:
- Is an independent fee-based research service
- Does not take proprietary positions, long or short
- Does not solicit business or fees from the corporates we review

Equity Bottom-Up

Lenovo presents itself as a dynamic IT company, well positioned to benefit from the growth in connectivity. It talks about taking share and record profits. We think the reality is quite different. Lenovo is primarily a hardware manufacturer with commodity margins that grows via acquisitions. It has branched out into data centres and some tech services, but these remain limited and possibly loss making.  The problem is that both liabilities and funding costs are rising. The new US$1bn bond cost 5.875%, exceeding last year’s 4.5% operating return and above our forecast return for FY2021. Cashflow would have been negative without the fall in receivables and the endless fund raising suggests that the cash pile is not all that it seems. SELL.<iframe src="//www.youtube.com/embed/g-kFNPSUZiE" width="640" height="360"></iframe><a href="https://youtu.be/g-kFNPSUZiE" target="_blank" rel="noopener"></a>

Lenovo presents itself as a dynamic IT company, well positioned to benefit from the growth in connectivity. It talks about taking share and record profits. We think the reality is quite different. Lenovo is primarily a hardware manufacturer with commodity margins that grows via acquisitions. It has branched out into data centres and some tech services, but these remain limited and possibly loss making.  The problem is that both liabilities and funding costs are rising. The new US$1bn bond cost 5.875%, exceeding last year’s 4.5% operating return and above our forecast return for FY2021. Cashflow would have been negative without the fall in receivables and the endless fund raising suggests that the cash pile is not all that it seems. SELL.

Sell Lenovo (992 HK) FY2020: Falling Revenue, Rising Debts

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Scotts Miracle-Gro Co Cl A / Equity Bottom-Up

<figure>
 <img src='https://api2.sgx.com/sites/default/files/2020-05/SMG-CEO.jpg' alt='SMG-CEO' />
 </figure>
 <div class='content-caption'>SMG-CEO</div>
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
For medical entrepreneur Dr Beng Teck Liang, taking the road less travelled nearly two decades ago has made a difference - and a serendipitous one at that. 
The scion of an urologist, Beng began his career as a Medical Officer with Singapore's Ministry of Health in 1996, after graduating from the UK's University of Manchester Medical School. 
"Although I was trained as a doctor, I wanted something more, so I decided to take a different path from my peers, and move from medicine to business," said the Chief Executive Officer of SGX-listed healthcare services provider Singapore Medical Group Ltd (SMG). 
So he retooled himself with a Master's in Business Administration from the University of Chicago's Booth School of Business and a General Management Programme from Harvard Business School. 
After spending the next decade managing multi-billion dollar businesses in information technology and healthcare across Asia Pacific for multinational corporations Hewlett-Packard and General Electric, Beng was ready once again to steer in a new direction. 
"I wanted to build something for myself. And when my partners and I saw the opportunity with SMG at that time, we decided to go for it," he recalled. "We launched a takeover and general offer for the company in 2013, and the rest is, undoubtedly, a beautiful history." 
However, the milestones that SMG achieved in the succeeding seven years did not come easy - hard decisions and sleepless nights were inevitable. 
"SMG had seen better days - its reputation was marred by controversy, business was shrinking, and we were months away from going broke. The stakes were really high at the time," Beng recalled. 
"We had to reorganise teams, cut costs, retrench or fire staff, before we could grow again. During the first year, I was constantly asking myself, What did I get myself into? Am I really going to make this work?" 
Determination and discipline, as well as biting not one, but several bullets, eventually yielded results. "We managed to turn around, slowly but surely, and looking back now, there's a tremendous sense of satisfaction," he added. 
And the proof, as they say, is in the pudding: For the year ended 31 December 2019, SMG reported a 11.3% year-over-year jump in revenue to a record S$94.7 million, driven by growth across all business segments. 
Operating cash flows rose to S$25.7 million for the year from S$16.8 million in FY2018. 
Today, SMG has a market capitalisation of more than S$120 million, up six-fold from its value of about S$20 million before the takeover. 
Incorporated in 2005 and listed on Singapore Exchange since 2009, SMG is a private specialist healthcare provider, with a comprehensive range of multidisciplinary specialties and an extensive network of Specialist and Associate doctors in clinics across Singapore. 
SMG's practices can be found in both central and suburban locations, including Paragon Medical Centre, Mount Elizabeth Medical Centre, Gleneagles Medical Centre, Mount Alvernia Medical Centre, as well as Bishan, Bedok, Toa Payoh and Punggol. Its specialties include Aesthetics, Cardiology, Dentistry, Medical Oncology, Obstetrics &amp; Gynaecology, Paediatrics, as well as Plastic and Reconstruction Surgery. Unswerving Focus 
Right from the start, Beng's vision for SMG was crystal-clear: Export the Singapore brand of healthcare - which is well-loved and well-respected in the region - beyond domestic shores. 
"Apart from the biggest players in this space, like Parkway Pantai and Raffles Medical Group, there are no small and medium companies who have a significant pan-Asian presence." 
SMG aims to change that. Today, it has an expanding footprint in Indonesia, a network of clinics in Vietnam, and a robust in-vitro fertilisation (IVF) business in Australia. "We were ahead of our peers in terms of taking that leap and targeting the markets, which are traditional sources of medical tourists in the region," Beng said. 
"Singapore's share of the region's medical tourism pie has been declining - we knew it would end at some point - so our goal was to bring the best-quality healthcare over to these countries. And I think we have made a lot of progress in achieving that." 
Apart from its regional footprint, the Group has also differentiated itself from competitors through its diversification strategy. "Our specialties cut across five verticals - cancer, aesthetics, paediatrics, diagnostics, as well as obstetrics and gynaecology - and we're a significant player in each vertical." 
SMG has also established a wide network of clinics across the city-state - of its 36 clinics, more than two-thirds are in the heartlands. It is incubating other businesses, while some potential verticals, like dental and ophthamology, have yet to grow to a significant size, Beng added. 
In partnership with South Korean healthcare group CHA Health Systems, SMG will actively pursue projects in Vietnam, Singapore, Oceania and other key Pacific Rim markets to address burgeoning demand for fertility services, as the region's birth rates continue to decline. 
The Group will also leverage CHA's expertise in anti-ageing care, as well as Korea's dermatology and aesthetics know-how, to boost its lead in various specialties, including oncology. 
"The CHA-SMG partnership is expected to lay the foundation for Asia-Pacific's first dedicated platform for comprehensive wellness care, spanning the anti-ageing, beauty and preventive care spectrums," he noted. 
Last year, an international unit of CHA invested S$50 million in SMG, raising its stake to 24.04% and becoming the Group's controlling shareholder. Silver Lining 
These days, what keeps the 48-year-old awake in the wee hours is none other than the COVID-19 outbreak. "This virtual enemy has complicated our previously simple growth strategy, which revolved around how fast we could expand, which markets to venture into, and which partners we should bring on board," he said. 
Lockdowns across the region have prevented ASEAN patients from carrying out their normal clinic visits. "COVID-19 will definitely impact us - about 20% to 30% of our business comes from ASEAN." 
Thankfully, there is a silver lining. "We unveiled our telehealth business at the beginning of last year, and are starting to reap the benefits of that," he noted. Patients can seek specialist care via tele-consultation through SMG's HiDoc platform, which is easily accessed via a mobile app or website. 
"We see huge opportunities in this space as medical tourism grinds to a halt from the pandemic." 
Looking back, Beng attributes SMG's success to key decisions made seven years ago, one of them being a "Buy and Grow" strategy. "Acquisitions helped us scale up and provided a catalyst for growth. Our verticals doubled or tripled in size after we came across opportunities to acquire clinics, and acted quickly," he said. 
"But we've never rested on our laurels - we're always mindful that we still need to maintain organic growth within our networks by opening new clinics and adding specialists." 
Between 2015 and 2019, SMG added more than 20 specialists to its fold, reflecting an 85% increase to 48 from 26. The pool has been expanding every year, largely through acquisitions of medical practices and the hiring of specialists from the public healthcare sector. 
At the end of the day, ushering SMG into its next phase of growth - and on the global stage, no less - is what keeps this father of two boys, aged 12 and 15, going. 
What's exciting is the fact that the Group has the opportunity to change how healthcare is perceived and delivered, both in this region and beyond, said Beng. 
"We're one of the biggest movers and shakers in the healthcare space now, because of the track record we've established over the last seven years," he pointed out. 
"SMG is part of a global collaborative platform that's growing, not just in Southeast Asia and the South Pacific, but in North Asia, and also further afield in the US and elsewhere." Singapore Medical Group Ltd 
Incorporated in 2005 and listed on SGX since 2009, Singapore Medical Group (SMG) is a private specialist healthcare provider with a comprehensive range of multidisciplinary specialties, and an extensive network of Specialist and Associate doctors located in clinics across Singapore. 
SMG's practices can be found at Paragon Medical Centre, Mount Elizabeth Medical Centre, Novena Medical Center, OUE Downtown Gallery, Gleneagles Medical Centre, Farrer Park Medical Centre@Connexion, and Mount Alvernia Medical Centre. Suburban locations include Bishan, Bedok, Toa Payoh and Punggol. Its specialties include Aesthetics, Cardiology, Dentistry, Medical Oncology, Obstetrics &amp; Gynaecology, Paediatrics, as well as Plastic and Reconstruction Surgery. 
The company website is: <a href="http://edm.sgx.com/a/hBetL0iB86%24MfB91z9HAAPJbdH7/link8">www.smg.sg</a>.

Click <a href="http://edm.sgx.com/a/hBetL0iB86%24MfB91z9HAAPJbdH7/link9">here</a> for the company's StockFacts page. 
For the full year ended 31 December 2019 financial results, click <a href="http://edm.sgx.com/a/hBetL0iB86%24MfB91z9HAAPJbdH7/link10">here</a>.
</body></html>


      
    
    SMG-CEO


For medical entrepreneur Dr Beng Teck Liang, taking the road less travelled nearly two decades ago has made a difference - and a serendipitous one at that.  
The scion of an urologist, Beng began his career as a Medical Officer with Singapore's Ministry of Health in 1996, after graduating from the UK's University of Manchester Medical School.  
"Although I was trained as a doctor, I wanted something more, so I decided to take a different path from my peers, and move from medicine to business," said the Chief Executive Officer of SGX-listed healthcare services provider Singapore Medical Group Ltd (SMG).  
So he retooled himself with a Master's in Business Administration from the University of Chicago's Booth School of Business and a General Management Programme from Harvard Business School.  
After spending the next decade managing multi-billion dollar businesses in information technology and healthcare across Asia Pacific for multinational corporations Hewlett-Packard and General Electric, Beng was ready once again to steer in a new direction.  
"I wanted to build something for myself. And when my partners and I saw the opportunity with SMG at that time, we decided to go for it," he recalled. "We launched a takeover and general offer for the company in 2013, and the rest is, undoubtedly, a beautiful history."  
However, the milestones that SMG achieved in the succeeding seven years did not come easy - hard decisions and sleepless nights were inevitable.  
"SMG had seen better days - its reputation was marred by controversy, business was shrinking, and we were months away from going broke. The stakes were really high at the time," Beng recalled.  
"We had to reorganise teams, cut costs, retrench or fire staff, before we could grow again. During the first year, I was constantly asking myself, What did I get myself into? Am I really going to make this work?"  
Determination and discipline, as well as biting not one, but several bullets, eventually yielded results. "We managed to turn around, slowly but surely, and looking back now, there's a tremendous sense of satisfaction," he added.  
And the proof, as they say, is in the pudding: For the year ended 31 December 2019, SMG reported a 11.3% year-over-year jump in revenue to a record S$94.7 million, driven by growth across all business segments. 
Operating cash flows rose to S$25.7 million for the year from S$16.8 million in FY2018.  
Today, SMG has a market capitalisation of more than S$120 million, up six-fold from its value of about S$20 million before the takeover.  
Incorporated in 2005 and listed on Singapore Exchange since 2009, SMG is a private specialist healthcare provider, with a comprehensive range of multidisciplinary specialties and an extensive network of Specialist and Associate doctors in clinics across Singapore.  
SMG's practices can be found in both central and suburban locations, including Paragon Medical Centre, Mount Elizabeth Medical Centre, Gleneagles Medical Centre, Mount Alvernia Medical Centre, as well as Bishan, Bedok, Toa Payoh and Punggol. Its specialties include Aesthetics, Cardiology, Dentistry, Medical Oncology, Obstetrics &amp; Gynaecology, Paediatrics, as well as Plastic and Reconstruction Surgery.  Unswerving Focus  
Right from the start, Beng's vision for SMG was crystal-clear: Export the Singapore brand of healthcare - which is well-loved and well-respected in the region - beyond domestic shores.  
"Apart from the biggest players in this space, like Parkway Pantai and Raffles Medical Group, there are no small and medium companies who have a significant pan-Asian presence."  
SMG aims to change that. Today, it has an expanding footprint in Indonesia, a network of clinics in Vietnam, and a robust in-vitro fertilisation (IVF) business in Australia. "We were ahead of our peers in terms of taking that leap and targeting the markets, which are traditional sources of medical tourists in the region," Beng said.  
"Singapore's share of the region's medical tourism pie has been declining - we knew it would end at some point - so our goal was to bring the best-quality healthcare over to these countries. And I think we have made a lot of progress in achieving that."  
Apart from its regional footprint, the Group has also differentiated itself from competitors through its diversification strategy. "Our specialties cut across five verticals - cancer, aesthetics, paediatrics, diagnostics, as well as obstetrics and gynaecology - and we're a significant player in each vertical."  
SMG has also established a wide network of clinics across the city-state - of its 36 clinics, more than two-thirds are in the heartlands. It is incubating other businesses, while some potential verticals, like dental and ophthamology, have yet to grow to a significant size, Beng added.  
In partnership with South Korean healthcare group CHA Health Systems, SMG will actively pursue projects in Vietnam, Singapore, Oceania and other key Pacific Rim markets to address burgeoning demand for fertility services, as the region's birth rates continue to decline.  
The Group will also leverage CHA's expertise in anti-ageing care, as well as Korea's dermatology and aesthetics know-how, to boost its lead in various specialties, including oncology.  
"The CHA-SMG partnership is expected to lay the foundation for Asia-Pacific's first dedicated platform for comprehensive wellness care, spanning the anti-ageing, beauty and preventive care spectrums," he noted.  
Last year, an international unit of CHA invested S$50 million in SMG, raising its stake to 24.04% and becoming the Group's controlling shareholder.  Silver Lining  
These days, what keeps the 48-year-old awake in the wee hours is none other than the COVID-19 outbreak. "This virtual enemy has complicated our previously simple growth strategy, which revolved around how fast we could expand, which markets to venture into, and which partners we should bring on board," he said.  
Lockdowns across the region have prevented ASEAN patients from carrying out their normal clinic visits. "COVID-19 will definitely impact us - about 20% to 30% of our business comes from ASEAN."  
Thankfully, there is a silver lining. "We unveiled our telehealth business at the beginning of last year, and are starting to reap the benefits of that," he noted. Patients can seek specialist care via tele-consultation through SMG's HiDoc platform, which is easily accessed via a mobile app or website.  
"We see huge opportunities in this space as medical tourism grinds to a halt from the pandemic."  
Looking back, Beng attributes SMG's success to key decisions made seven years ago, one of them being a "Buy and Grow" strategy. "Acquisitions helped us scale up and provided a catalyst for growth. Our verticals doubled or tripled in size after we came across opportunities to acquire clinics, and acted quickly," he said.  
"But we've never rested on our laurels - we're always mindful that we still need to maintain organic growth within our networks by opening new clinics and adding specialists."  
Between 2015 and 2019, SMG added more than 20 specialists to its fold, reflecting an 85% increase to 48 from 26. The pool has been expanding every year, largely through acquisitions of medical practices and the hiring of specialists from the public healthcare sector.  
At the end of the day, ushering SMG into its next phase of growth - and on the global stage, no less - is what keeps this father of two boys, aged 12 and 15, going.  
What's exciting is the fact that the Group has the opportunity to change how healthcare is perceived and delivered, both in this region and beyond, said Beng.  
"We're one of the biggest movers and shakers in the healthcare space now, because of the track record we've established over the last seven years," he pointed out.  
"SMG is part of a global collaborative platform that's growing, not just in Southeast Asia and the South Pacific, but in North Asia, and also further afield in the US and elsewhere."  Singapore Medical Group Ltd  
Incorporated in 2005 and listed on SGX since 2009, Singapore Medical Group (SMG) is a private specialist healthcare provider with a comprehensive range of multidisciplinary specialties, and an extensive network of Specialist and Associate doctors located in clinics across Singapore.  
SMG's practices can be found at Paragon Medical Centre, Mount Elizabeth Medical Centre, Novena Medical Center, OUE Downtown Gallery, Gleneagles Medical Centre, Farrer Park Medical Centre@Connexion, and Mount Alvernia Medical Centre. Suburban locations include Bishan, Bedok, Toa Payoh and Punggol. Its specialties include Aesthetics, Cardiology, Dentistry, Medical Oncology, Obstetrics &amp; Gynaecology, Paediatrics, as well as Plastic and Reconstruction Surgery.  
The company website is: www.smg.sg.

Click here for the company's StockFacts page.  
For the full year ended 31 December 2019 financial results, click here.



Singapore Medical Group Eyes Global Stage

Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<ul>
<li>Lenovo, the world’s largest personal computer vendor (by unit sales) is currently trading close to its 12-month low at HK$3.89 per share. The company shares have lost around 44% of their value over the last 12-months from HK$7 per share to HK$3.89 per share (as at 30th March 2020).</li>
<li>Company earnings have been volatile over the years due to the cyclicality of its business (PCs and smart devices) and at the same time, the company’s product roll-outs in its mobile business (Motorola) have failed to impress tech savvy customers and as a result, failed to gain share in the market.</li>
<li>The PC and smart devices business remains a solid cash cow for Lenovo while its mobile business continues to decline. Lenovo’s data center business is the only promising business in its portfolio, however, the data center operations are still too small to make a large impact on the company’s earnings and valuation.</li>
<li>It makes sense for us to call Lenovo “a Fallen Angel” as the company has failed to make use of the growth opportunities in the market and has stumbled when trying to impress investors due to delays in product roll-outs, heavy competition in the markets in which the company operates, high leverage and exposure to the ongoing trade war between the US and China.</li>
<li>We expect the company to start generating strong cash flows in the next 2-3 years and we believe it would be an attractive candidate based on potential future cash flow generation.</li>
</ul>


Lenovo, the world’s largest personal computer vendor (by unit sales) is currently trading close to its 12-month low at HK$3.89 per share. The company shares have lost around 44% of their value over the last 12-months from HK$7 per share to HK$3.89 per share (as at 30th March 2020).
Company earnings have been volatile over the years due to the cyclicality of its business (PCs and smart devices) and at the same time, the company’s product roll-outs in its mobile business (Motorola) have failed to impress tech savvy customers and as a result, failed to gain share in the market.
The PC and smart devices business remains a solid cash cow for Lenovo while its mobile business continues to decline. Lenovo’s data center business is the only promising business in its portfolio, however, the data center operations are still too small to make a large impact on the company’s earnings and valuation.
It makes sense for us to call Lenovo “a Fallen Angel” as the company has failed to make use of the growth opportunities in the market and has stumbled when trying to impress investors due to delays in product roll-outs, heavy competition in the markets in which the company operates, high leverage and exposure to the ongoing trade war between the US and China.
We expect the company to start generating strong cash flows in the next 2-3 years and we believe it would be an attractive candidate based on potential future cash flow generation.


Lenovo: Does This Fallen Angel's Redemption Lie in an LBO

United States

HP Inc. provides imaging and printing systems, computing systems, mobile devices, solutions, and services for business and home. The Company offers products which includes laser and inkjet printers, scanners, copiers and faxes, personal computers, workstations, storage solutions, and other computing and printing systems. HP sells its products worldwide.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Hewlett Packard Co (HPQ US)

HP Inc. - Investment Thesis

HP Inc delivered a mediocre result with a revenue growth of 7% that was below our expectations. However, the company’s non-GAAP net earnings...

Baptista Research

S&P500 Index Rebalance: NXPI Is the One to Watch

There are 4 changes to the S&P500 with NXP Semiconductors the largest beneficiary of the changes. Estimated one-way turnover is US$22.4bn and there...

Brian Freitas

Sell Lenovo (992 HK) FY2020: Falling Revenue, Rising Debts

Lenovo presents itself as a dynamic IT company, well positioned to benefit from the growth in connectivity. It talks about taking share and record...

Bucephalus Research Partnership

Singapore Medical Group Eyes Global Stage

For medical entrepreneur Dr Beng Teck Liang, taking the road less travelled nearly two decades ago has made a difference - and...

Singapore Exchange Ltd (SGX)

Lenovo: Does This Fallen Angel's Redemption Lie in an LBO

Lenovo, the world’s largest personal computer vendor (by unit sales) is currently trading close to its 12-month low at HK$3.89 per share. The...

Shifara Samsudeen, ACMA, CGMA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)