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

Laboratory Corporation of America Holdings / Equity Capital Markets

Laboratory Corporation of America Holdings

<ul><li>This is our first report on a life sciences major, Laboratory Corporation of America Holdings.</li><li>The company had a mixed quarter and failed to meet the revenue expectations of Wall Street despite decent revenue growth in diagnostics.</li><li>We initiate coverage on the stock of Laboratory Corporation of America Holdings with a 'Buy' rating.</li></ul>

This is our first report on a life sciences major, Laboratory Corporation of America Holdings.The company had a mixed quarter and failed to meet the revenue expectations of Wall Street despite decent revenue growth in diagnostics.We initiate coverage on the stock of Laboratory Corporation of America Holdings with a 'Buy' rating.

Laboratory Corporation of America Holdings: Initiation of Coverage – Acquisitions

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Thematic (Sector/Industry)

<ul>
<li>US Value funds rotate in to Health Care, pushing allocations to their highest levels on record.</li>
<li>The average Health Care allocation stands at 18.25%, with 71.4% of Value managers overweight at +3.11% above benchmark.  Health Care has become the conviction sector holding among US Value managers.</li>
<li>The most widely held stocks in the sector are Cigna Corp and Unitedhealth Group, owned by 55.7% and 52.9% of Value managers respectively.</li>
</ul>


US Value funds rotate in to Health Care, pushing allocations to their highest levels on record.
The average Health Care allocation stands at 18.25%, with 71.4% of Value managers overweight at +3.11% above benchmark.  Health Care has become the conviction sector holding among US Value managers.
The most widely held stocks in the sector are Cigna Corp and Unitedhealth Group, owned by 55.7% and 52.9% of Value managers respectively.


HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/wuxi-apptec-co-ltd-bf4a1265-beef-48b6-b82d-29308426030f" target="_blank" data-smartkarma-citation="entities:27795:1" rel="noopener">WuXi AppTec Co. Ltd. (2359 HK)</a> has released its financial reports in 2020 and 2021Q1. The revenue in 2020 was RMB16.5 billion, up 28.46% YoY, and net profit attributed to shareholders was RMB2.96 billion, up 59.6% YoY. In 2021Q1, the revenue was RMB4.95 billion, up 55.31% YoY, and net profit attributed to shareholders was RMB1.5 billion, up 394.92% YoY. The results beat market expectations. As the leading/benchmark company in China CRO/CDMO industry, WuXi AppTec has always been the focus of investors. This insight mainly analyzed the performance outlook in the future, including both the certainties and uncertainties.

WuXi AppTec Co. Ltd. (2359 HK) has released its financial reports in 2020 and 2021Q1. The revenue in 2020 was RMB16.5 billion, up 28.46% YoY, and net profit attributed to shareholders was RMB2.96 billion, up 59.6% YoY. In 2021Q1, the revenue was RMB4.95 billion, up 55.31% YoY, and net profit attributed to shareholders was RMB1.5 billion, up 394.92% YoY. The results beat market expectations. As the leading/benchmark company in China CRO/CDMO industry, WuXi AppTec has always been the focus of investors. This insight mainly analyzed the performance outlook in the future, including both the certainties and uncertainties. 

WuXi AppTec (2359.HK) - The Certainties and the Uncertainties

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Kindstar Globalgene Technology / Equity Capital Markets

Kindstar is a leading esoteric test service provider in China. The company has a dominant market in the independent hematological test segment and is looking to raise up to USD 200m in  H-share listing in Hong Kong. In our previous note, we discussed Kindstar's business segment. The company has a strong footprint in the hematology test segment with the majority of its revenue is derived from the hematological tests, particularly for lymphoma and myeloma related diseases. The company is relatively weak in other areas such as oncology and maternity related businesses. We think the company can continue to grow the existing pie of hematological tests for which the public hospitals do not want to invest in the test equipment and processes but it will be challenging for the company to expand the business into the area where public hospitals are willing to invest in. We think the company has a decent line-up of investors but there is still a lack of international healthcare investors. The management's experience is also decent.In this note, we compare the company's key financial metrics with other leading listed ICL. We also discuss the company's pre-IPO valuation in the context of its growth potential and concerns we raised in our previous note.<h2>Our previous coverage on Kindstar</h2><ul><li><a href="https://www.smartkarma.com/insights/kindstar-pre-ipo-issues-with-scalability" target="_blank" rel="noopener">Kindstar (康圣环球) Pre-IPO: Issues with Scalability</a></li></ul>

Kindstar is a leading esoteric test service provider in China. The company has a dominant market in the independent hematological test segment and is looking to raise up to USD 200m in  H-share listing in Hong Kong. In our previous note, we discussed Kindstar's business segment. The company has a strong footprint in the hematology test segment with the majority of its revenue is derived from the hematological tests, particularly for lymphoma and myeloma related diseases. The company is relatively weak in other areas such as oncology and maternity related businesses. We think the company can continue to grow the existing pie of hematological tests for which the public hospitals do not want to invest in the test equipment and processes but it will be challenging for the company to expand the business into the area where public hospitals are willing to invest in. We think the company has a decent line-up of investors but there is still a lack of international healthcare investors. The management's experience is also decent.In this note, we compare the company's key financial metrics with other leading listed ICL. We also discuss the company's pre-IPO valuation in the context of its growth potential and concerns we raised in our previous note.Our previous coverage on KindstarKindstar (康圣环球) Pre-IPO: Issues with Scalability

Kindstar (康圣环球) Pre-IPO: Is It Worth the Premium?

Alpha-Centric ESG Research

Kyle Rudden

U.S. President-Elect Joe Biden recently announced four "Day One" priorities for his administration. The first of those priorities is an aggressive seven-point COVID-19 response plan, the first point of which is COVID-19 testing. Testing is Biden's near-term focus, and testing stocks stand to gain.As noted in <a href="https://www.smartkarma.com/insights/biden-covid-19-response-plan-overview-of-its-inherent-investment-themes" target="_blank" data-smartkarma-citation="insights:45631" rel="noopener">Biden COVID-19 Response Plan: Overview of Its Inherent Investment Themes</a>, testing stocks represent the largest, most tangible, and nearest-term investment opportunity amongst the various themes inherent in Biden's COVID-19 plan (summarised in the Insight linked to above).Don't just back up the truck, however. The plan could be boon for testing stocks,  but it is harldy a "rising tide lifts all boats" scenario. It creates a window of upside for some of testing stocks, though not all, and it's a brief window replete with nuances and caveats. Selectivity and timing are key.This Insight presents an investment thesis for the COVID-19 testing stock theme, specifically vis-à-vis the details of the plan. It consists of two phases (time horizons), and two types of stocks:<ol>
<li>
Nearer-Term: Focus on diagnostic (versus antibody) testing stocks, especially those whose tests have fit best with Biden's "rapid deployment, rapid results" testing strategy. For example, rapid antigent tests, others with fast time-to-results, point-of-care and at-home collection, etc.</li>
<li>
Medium-Term: COVID-19 vaccine progress is a major catalyst for this theme. Vaccines will not end testing altogether (at least not soon), but as mass-vaccination becomes more reality than a dream, it would be wise to shift out of from diagnostic stocks into antibody testing stocks.</li>
</ol>

U.S. President-Elect Joe Biden recently announced four "Day One" priorities for his administration. The first of those priorities is an aggressive seven-point COVID-19 response plan, the first point of which is COVID-19 testing. Testing is Biden's near-term focus, and testing stocks stand to gain.As noted in Biden COVID-19 Response Plan: Overview of Its Inherent Investment Themes, testing stocks represent the largest, most tangible, and nearest-term investment opportunity amongst the various themes inherent in Biden's COVID-19 plan (summarised in the Insight linked to above).Don't just back up the truck, however. The plan could be boon for testing stocks,  but it is harldy a "rising tide lifts all boats" scenario. It creates a window of upside for some of testing stocks, though not all, and it's a brief window replete with nuances and caveats. Selectivity and timing are key.This Insight presents an investment thesis for the COVID-19 testing stock theme, specifically vis-à-vis the details of the plan. It consists of two phases (time horizons), and two types of stocks:

Nearer-Term: Focus on diagnostic (versus antibody) testing stocks, especially those whose tests have fit best with Biden's "rapid deployment, rapid results" testing strategy. For example, rapid antigent tests, others with fast time-to-results, point-of-care and at-home collection, etc.

Medium-Term: COVID-19 vaccine progress is a major catalyst for this theme. Vaccines will not end testing altogether (at least not soon), but as mass-vaccination becomes more reality than a dream, it would be wise to shift out of from diagnostic stocks into antibody testing stocks.


Biden COVID-19 Response Plan: Its Largest Near-Term Opportunity Is In Testing Stocks

United States

Laboratory Corporation of America Holdings is a clinical laboratory company that offers clinical laboratory tests used by the medical profession in routine testing, patient diagnosis, and in the monitoring and treatment of disease. The Company develops specialty testing operations, such as oncology testing, HIV genotyping and phenotyping, diagnostic genetics and clinical trials.

Laboratory Corporation of America Holdings (LH US)

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Laboratory Corporation of America Holdings (LH US)

Laboratory Corporation of America Holdings: Initiation of Coverage – Acquisitions

This is our first report on a life sciences major, Laboratory Corporation of America Holdings. The company had a mixed quarter and failed to meet...

Baptista Research

US Value Funds Rotate in to Health Care

US Value managers have made an active rotation in to the Health Care sector, pushing allocations to their highest levels on record.

Steven Holden

WuXi AppTec (2359.HK) - The Certainties and the Uncertainties

As the benchmark company in China CRO/CDMO industry, WuXi AppTec is always the focus of investors. This insight mainly analyzed the certainties and...

Xinyao (Criss) Wang

Kindstar (康圣环球) Pre-IPO: Is It Worth the Premium?

We compare the company's key financial metrics with other leading listed ICL. We also discuss the company's pre-IPO valuation in the context of its...

Ke Yan, CFA, FRM

Biden COVID-19 Response Plan: Its Largest Near-Term Opportunity Is In Testing Stocks

COVID-19 testing stocks represent the largest, most tangible, and nearest-term investment opportunity inherent in Biden's recently-announced COVID...

Kyle Rudden

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