Analysis on GARP with strong economic moats, Moat Investing

Moat Investing

Analysis on GARP with strong economic moats

We are a group of experienced investors that like to dig deeper into stocks to find growth stories at a reasonable price with strong economic moats. We also aim to conduct high-quality analysis by doing deep dive on valuations, key business drivers, risk/reward, and different future scenarios.

GARP with strong economic moats

Equity Bottom-Up

<ul>
<li>Net Revenues reached $1.7 bln (102.6% YoY) on an FX neutral basis; Gross profit was $753 mln (44.3% margin), and the Income from operations was $166.2 mln ($99.4mln in Q1 20).</li>
<li>Net income before taxes was $138.9 mln ($89,3 mln in Q1 20); Net profit was $68.2 mln and Total Payment Volume was $17.5 bln, up 72% YoY on a FX neutral basis.</li>
<li>GMV was $7 billion, up 46% YoY on a FX neutral basis and the Unique active users reached 75.9 mln (+ 47,4% YoY);</li>
<li>Mercado Envios shipped over 230.5 mln items (+46.4% YoY) and Mobile Wallet delivered $2.9 bln in TPV (almost 200% growth YoY on a FX neutral basis.</li>
<li>Mercado Credito portfolio has reached $800 mln.</li>
</ul>


Net Revenues reached $1.7 bln (102.6% YoY) on an FX neutral basis; Gross profit was $753 mln (44.3% margin), and the Income from operations was $166.2 mln ($99.4mln in Q1 20).
Net income before taxes was $138.9 mln ($89,3 mln in Q1 20); Net profit was $68.2 mln and Total Payment Volume was $17.5 bln, up 72% YoY on a FX neutral basis.
GMV was $7 billion, up 46% YoY on a FX neutral basis and the Unique active users reached 75.9 mln (+ 47,4% YoY);
Mercado Envios shipped over 230.5 mln items (+46.4% YoY) and Mobile Wallet delivered $2.9 bln in TPV (almost 200% growth YoY on a FX neutral basis.
Mercado Credito portfolio has reached $800 mln.


MercadoLibre: Positive Q2 Results But Valuation Upside Is Now Limited

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.

<ul><li>MercadoLibre delivered an all-around beat in the most recent quarterly result, marking a noteworthy blend of growth and profitability.</li><li>Mexico emerged as a standout performer with a remarkable revenue growth exceeding 60% year-on-year, while Brazil also exhibited commendable performance with a growth rate of approximately 40%.</li><li>The commerce sector experienced an acceleration in GMV and items sold growth across the primary geographies of operation during Q3.</li></ul>

MercadoLibre delivered an all-around beat in the most recent quarterly result, marking a noteworthy blend of growth and profitability.Mexico emerged as a standout performer with a remarkable revenue growth exceeding 60% year-on-year, while Brazil also exhibited commendable performance with a growth rate of approximately 40%.The commerce sector experienced an acceleration in GMV and items sold growth across the primary geographies of operation during Q3.

MercadoLibre Inc.: Unveiling the Secret Behind Their Exceptional Fintech and Commerce Boom! - Major Drivers

<ul><li>This is our first report on LatAm e-commerce major, MercadoLibre, Inc.</li><li>The company delivered a positive result and managed an all-around beat in the last quarter, showcasing robust revenue growth.</li><li>The company does have potential for solid margin expansion alongside growth rates that surpass the market average.</li></ul>

This is our first report on LatAm e-commerce major, MercadoLibre, Inc.The company delivered a positive result and managed an all-around beat in the last quarter, showcasing robust revenue growth.The company does have potential for solid margin expansion alongside growth rates that surpass the market average.

MercadoLibre Inc.: Initiation of Coverage - Business Strategy

ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

<ul>
<li>There has been a recent press commentary about <a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd</a> laying off staff, which although unpleasant reflects management's decisive and pragmatic decision-making style which is no bad thing.</li>
<li>It is unclear how many staff are being laid off and where but it seems that Indonesia is not impacted in a big way and core markets continue to perform.</li>
<li>We will not follow on the coattails of liquidity with a negative recommendation when what management is doing looks positive and <a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a> is batting above its peers.</li>
</ul>


There has been a recent press commentary about Sea Ltd laying off staff, which although unpleasant reflects management's decisive and pragmatic decision-making style which is no bad thing.
It is unclear how many staff are being laid off and where but it seems that Indonesia is not impacted in a big way and core markets continue to perform.
We will not follow on the coattails of liquidity with a negative recommendation when what management is doing looks positive and Sea Ltd (SE US) is batting above its peers.


Sea Ltd (SE US) - Navigating Challenging Waters With Sails Set

GoTo Gojek Tokopedia Tbk PT / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/goto-gojek-tokopedia" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">GoTo</a> announced its much-anticipated FY2021 and 1Q2022 results, which did not disappoint, with improvements in a number of different metrics across its main verticals.  </li>
<li>1Q2022 saw a QoQ increase for on-demand, e-commerce, and fintech versus a seasonally strong 4Q plus the group improved take rates and contribution margin in 1Q2022 versus 4Q2021.</li>
<li>
<a href="https://www.smartkarma.com/entities/goto-gojek-tokopedia" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">GoTo</a>'s guidance for 2Q2022 is positive and it should be boosted by higher commission rates plus continuing synergies across the group, helping to improve profitability and growth.</li>
</ul>



GoTo announced its much-anticipated FY2021 and 1Q2022 results, which did not disappoint, with improvements in a number of different metrics across its main verticals.  
1Q2022 saw a QoQ increase for on-demand, e-commerce, and fintech versus a seasonally strong 4Q plus the group improved take rates and contribution margin in 1Q2022 versus 4Q2021.

GoTo's guidance for 2Q2022 is positive and it should be boosted by higher commission rates plus continuing synergies across the group, helping to improve profitability and growth.


GoTo (GOTO IJ) - Ploughing a Path to Profitability

Brazil

MercadoLibre, Inc. operates an online trading site for the Latin American markets. The Company's website allows businesses and individuals to list items, conduct sales, and purchases online in either a fixed-price and auction format. MercadoLibre offers classified advertisements for motor vehicles, vessels, aircraft, and real estate, as well as online payment services.

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

MercadoLibre (MELI US)

MercadoLibre: Positive Q2 Results But Valuation Upside Is Now Limited

Net Revenues reached $1.7 bln (102.6% YoY) on an FX neutral basis; Gross profit was $753 mln (44.3% margin), and the Income from operations was...

Moat Investing

MercadoLibre Inc.: Unveiling the Secret Behind Their Exceptional Fintech and Commerce Boom! - Major Drivers

MercadoLibre delivered an all-around beat in the most recent quarterly result, marking a noteworthy blend of growth and profitability. Mexico...

Baptista Research

MercadoLibre Inc.: Initiation of Coverage - Business Strategy

This is our first report on LatAm e-commerce major, MercadoLibre, Inc. The company delivered a positive result and managed an all-around beat in...

Baptista Research

Sea Ltd (SE US) - Navigating Challenging Waters With Sails Set

We will not follow on the coattails of liquidity with a negative recommendation when what management is doing looks positive and Sea Ltd (SE US) is...

Angus Mackintosh

GoTo (GOTO IJ) - Ploughing a Path to Profitability

GoTo's guidance for 2Q2022 is positive and it should be boosted by higher commission rates plus continuing synergies across the group, helping to...

Angus Mackintosh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)