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

Hyatt Hotels Corp Cl A / Equity Capital Markets

<ul><li>Hyatt Hotels has become a very interesting case study within the hospitality industry.</li><li>After weathering the Covid-19 storm, the company has delivered a decent set of results with a gradual increase in tourist footfalls.</li><li>They are also giving the company’s balance sheet and its core business model a complete facelift while undergoing a strategic shift towards an asset-light model.</li></ul>

Hyatt Hotels has become a very interesting case study within the hospitality industry.After weathering the Covid-19 storm, the company has delivered a decent set of results with a gradual increase in tourist footfalls.They are also giving the company’s balance sheet and its core business model a complete facelift while undergoing a strategic shift towards an asset-light model.

Hyatt Hotels Corporation - Investment Thesis

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

As the broad market takes a breather, the weight of the evidence continues to support our belief that we are in the early stages of a broad-based advance. As long as there are no significant negative market developments, a buy-the-dip mentality is warranted. In today’s report we highlight attractive Groups and stocks within Consumer Discretionary, Health Care, and Transportation: Hotels &amp; Resorts, Large/Mid-Cap, Hospitals, and Vehicle Rentals/Leasing.

As the broad market takes a breather, the weight of the evidence continues to support our belief that we are in the early stages of a broad-based advance. As long as there are no significant negative market developments, a buy-the-dip mentality is warranted. In today’s report we highlight attractive Groups and stocks within Consumer Discretionary, Health Care, and Transportation: Hotels &amp; Resorts, Large/Mid-Cap, Hospitals, and Vehicle Rentals/Leasing.

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

ARA US Hospitality Trust / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/28048" target="_blank" data-smartkarma-citation="entities:28048:1">ARA US Hospitality Trust (HOTEL SP)</a> (ARAHT) plans to raise upto US$450m via its IPO on SGX. The initial portfolio comprises of 38 hotels in the US and was recently purchased by ARA from Lone Star. Lone Star in turn had bought the assets from <a href="https://www.smartkarma.com/entities/1912" target="_blank" data-smartkarma-citation="entities:1912:1">Hyatt Hotels Corp Cl A (H US)</a> in 2014.
ARAHT is being offered at 7.8% FY19 and 8.0% FY20 yield. Over the past few years, the portfolio hasn't really recorded much growth. The Hyatt House brand has been doing better than the Hyatt Place Hotels. ARAHT expects this trend to reverse going forward, for reasons that haven't been mentioned. Even then, the forecast growth rate is only of 3.2%.
Moreover as most of the assets were recently refurbished there don't seem to be any asset enhancement opportunities. To add to that, the sponsor doesn't have a ready pipeline of assets either for future injections.

ARA US Hospitality Trust (HOTEL SP) (ARAHT) plans to raise upto US$450m via its IPO on SGX. The initial portfolio comprises of 38 hotels in the US and was recently purchased by ARA from Lone Star. Lone Star in turn had bought the assets from Hyatt Hotels Corp Cl A (H US) in 2014.
ARAHT is being offered at 7.8% FY19 and 8.0% FY20 yield. Over the past few years, the portfolio hasn't really recorded much growth. The Hyatt House brand has been doing better than the Hyatt Place Hotels. ARAHT expects this trend to reverse going forward, for reasons that haven't been mentioned. Even then, the forecast growth rate is only of 3.2%.
Moreover as most of the assets were recently refurbished there don't seem to be any asset enhancement opportunities. To add to that, the sponsor doesn't have a ready pipeline of assets either for future injections.

ARA US Hospitality Trust IPO - Matured Portfolio with Few Signs of Growth

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Equity Bottom-Up

On August 28th, local and international media began reporting a large data breach at leading Chinese hotel chain <a href="https://www.smartkarma.com/entities/17527" target="_blank" data-smartkarma-citation="entities:17527:1">Huazhu Group (HTHT US)</a> after an unknown party attempted to sell some of the stolen information on the dark web for the paltry sum of 8 bitcoins (about US$54,000).
In the weeks since then, investors have punished Huazhu Group's US-listed ADSs, which have fallen 20% since August 27th and traded within 12% of their 52-week low as of Friday, October 12th. 
In this note we discuss why the data breach, which at first glance seemed to pose major challenge for Huazhu Group, is probably something investors should not worry about. We also re-iterate our positive view on Huazhu Group, which we view as an attractive way to gain exposure to China's developing tourism industry.

On August 28th, local and international media began reporting a large data breach at leading Chinese hotel chain Huazhu Group (HTHT US) after an unknown party attempted to sell some of the stolen information on the dark web for the paltry sum of 8 bitcoins (about US$54,000).
In the weeks since then, investors have punished Huazhu Group's US-listed ADSs, which have fallen 20% since August 27th and traded within 12% of their 52-week low as of Friday, October 12th. 
In this note we discuss why the data breach, which at first glance seemed to pose major challenge for Huazhu Group, is probably something investors should not worry about. We also re-iterate our positive view on Huazhu Group, which we view as an attractive way to gain exposure to China's developing tourism industry.

Huge Data Breach at Huazhu Group: Why It Looked Bad (At First), & Why It's (Probably) Not Fatal

Earlier in September <a href="https://www.smartkarma.com/entities/27439" target="_blank" data-smartkarma-citation="entities:27439:1">Fosun Tourism (1638664D HK)</a> filed a prospectus in preparation for listing in Hong Kong. Terms of the offering have not yet been disclosed, but recent media reports indicate the company may aim to raise as much as US$500-700 mn (HK$3.9-5.5 bn). 
The objectives of this note are four-fold:
<ol>
<li>To provide an overview of the company's history, its current operations, and its financials</li>
<li>To suggest the most appropriate peer comparisons in the region</li>
<li>To begin developing an approach to valuation</li>
<li>To answer the question, 'Is Fosun Tourism Group really a play on Chinese tourism?'</li>
</ol>
We will follow up with a second note on valuation once terms of the deal are released. A link to Fosun Tourism Group's prospectus dated September 3rd can be found at the end of this note.

Earlier in September Fosun Tourism (1638664D HK) filed a prospectus in preparation for listing in Hong Kong. Terms of the offering have not yet been disclosed, but recent media reports indicate the company may aim to raise as much as US$500-700 mn (HK$3.9-5.5 bn). 
The objectives of this note are four-fold:

To provide an overview of the company's history, its current operations, and its financials
To suggest the most appropriate peer comparisons in the region
To begin developing an approach to valuation
To answer the question, 'Is Fosun Tourism Group really a play on Chinese tourism?'

We will follow up with a second note on valuation once terms of the deal are released. A link to Fosun Tourism Group's prospectus dated September 3rd can be found at the end of this note.

Fosun Tourism IPO, Part 1: Back to the Beach With Club Med! | But Is This a 'China' Play?

United States

Hyatt Hotels Corp. is a global hospitality company. The Company manages, franchises, owns, and develops branded hotels, resorts and residential and vacation ownership properties around the world.

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Hyatt Hotels Corp Cl A (H US)

Hyatt Hotels Corporation - Investment Thesis

Hyatt Hotels has become a very interesting case study within the hospitality industry. After weathering the Covid-19 storm, the company has...

Baptista Research

U.S. Equity Strategy: Taking a Breather

As the broad market takes a breather, the weight of the evidence continues to support our belief that we are in the early stages of a broad-based...

Vermilion Research

ARA US Hospitality Trust IPO - Matured Portfolio with Few Signs of Growth

ARA US Hospitality Trust (HOTEL SP) (ARAHT) plans to raise upto US$450m via its IPO on SGX. The initial portfolio comprises of 38 hotels in the US...

Sumeet Singh

Huge Data Breach at Huazhu Group: Why It Looked Bad (At First), & Why It's (Probably) Not Fatal

On August 28th, local and international media began reporting a large data breach at leading Chinese hotel chain Huazhu Group (HTHT US) after an...

Daniel Hellberg

Fosun Tourism IPO, Part 1: Back to the Beach With Club Med! | But Is This a 'China' Play?

Earlier in September Fosun Tourism (1638664D HK) filed a prospectus in preparation for listing in Hong Kong. Terms of the offering have not yet...

Daniel Hellberg

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