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 Bottom-Up

<ul><li>Plexus Corp recently reported fiscal second quarter 2024 results which showcased the company's capacity to maintain a robust growth trajectory and strong operational performance amidst a mixed business environment.</li><li>Plexus announced fiscal second quarter revenue of $967 million, which sat at the top end of the company's guidance, with a non-GAAP EPS of $0.94.</li><li>The non-GAAP operating margin was reported at 4.2%.</li></ul>

Plexus Corp recently reported fiscal second quarter 2024 results which showcased the company's capacity to maintain a robust growth trajectory and strong operational performance amidst a mixed business environment.Plexus announced fiscal second quarter revenue of $967 million, which sat at the top end of the company's guidance, with a non-GAAP EPS of $0.94.The non-GAAP operating margin was reported at 4.2%.

Plexus Corp: Expanding Market Presence in Industrial Sector - Major Drivers

<ul><li>This is our first report electronic manufacturing services provider, Plexus Corporation.</li><li>The company's Q4 2023 earnings, a significant takeaway includes the company's impressive performance throughout the fiscal year.</li><li>Plexus' VP of Communications and Investor Relations, Shawn Harrison, emphasized the company's focus on operational and customer service excellence, which ultimately led to strong financial results.</li></ul>

This is our first report electronic manufacturing services provider, Plexus Corporation.The company's Q4 2023 earnings, a significant takeaway includes the company's impressive performance throughout the fiscal year.Plexus' VP of Communications and Investor Relations, Shawn Harrison, emphasized the company's focus on operational and customer service excellence, which ultimately led to strong financial results.

Plexus Corp: Initiation of Coverage - Discover Their Secret Strategy for Growth In 2024! - Major Drivers

High Quality Stock Setups, Weekly Stock Bull Finder

Weekly Stock Bull Finder

High Quality Stock Setups

Finding high potential stock setups on quality companies

Thematic (Sector/Industry)

<ul><li>This past week the news was dominated by political midterm election results and a brewing crypto market implosion but also featured a late week rally after a surprising CPI inflation print which beat estimates on Thursday.</li><li>While pundits can posit various reasons for Thursday and Friday’s market rallies, there appears to be at least a few brewing catalysts that could carry positive momentum into 2023 which include 1) continued downside surprises in either CPI or PCE inflation data which would allow the Fed to back off its aggressive tightening campaign 2) steps leading to Chinese economy reopening reducing existing supply chain bottlenecks 3) steps leading to a ceasefire or peace agreement in Ukraine and 4) significant improvement in EU energy security situation resulting in lower EU inflation.</li><li>In the near term, it appears as of this writing that political gridlock in Washington D.C. will be upon us for the next 2 years removing the worst case scenarios of any significant market-negative legislation (i.e. tax hikes, etc.) being passed.</li></ul>

This past week the news was dominated by political midterm election results and a brewing crypto market implosion but also featured a late week rally after a surprising CPI inflation print which beat estimates on Thursday.While pundits can posit various reasons for Thursday and Friday’s market rallies, there appears to be at least a few brewing catalysts that could carry positive momentum into 2023 which include 1) continued downside surprises in either CPI or PCE inflation data which would allow the Fed to back off its aggressive tightening campaign 2) steps leading to Chinese economy reopening reducing existing supply chain bottlenecks 3) steps leading to a ceasefire or peace agreement in Ukraine and 4) significant improvement in EU energy security situation resulting in lower EU inflation.In the near term, it appears as of this writing that political gridlock in Washington D.C. will be upon us for the next 2 years removing the worst case scenarios of any significant market-negative legislation (i.e. tax hikes, etc.) being passed.

Fundamental Short Selling Research

Eric Fernandez, CFA

TwoRiversAnalytics

Sprouts Farmers Market / Equity Bottom-Up

Sales declines, margin compression, cuts in SG&amp;A and cuts in guidance and estimates feature in our Declining Businesses model. Declining business shorts tend to be lower beta, have longer time horizons, and tend to produce steadier (although slower) short returns.

Sales declines, margin compression, cuts in SG&amp;A and cuts in guidance and estimates feature in our Declining Businesses model. Declining business shorts tend to be lower beta, have longer time horizons, and tend to produce steadier (although slower) short returns.

Declining Business Short Candidates: Sprouts, Plexus, Ormat, Itron

Asia focused research insights & advisory, Asia Advisors

Vinay Patel

Asia focused research insights & advisory

Asia Advisors

Asia Advisors is an independent financial advisory and research firm working closely with corporates and institutions to provide consulting solutions & research insights. We provide advisory services including capital solutions, business strategy and investment insights.
Firm is headed by Vinay Patel who has close to two decades of experience in research and business development at large, international investment banks such as HSBC and ICICI Securities. Led research efforts in areas of Macroeconomics, Asset Allocation & Investment Strategy for close to a decade in global & domestic research teams. As a business head in Singapore, advised top global investment management firms & Portfolio managers in Asia for India related investments.
Vinay was recently joined by Swapnil Manish, an investment banker and ex-ecommerce entrepreneur with more than 12 years of experience. Swapnil was the TMT banker at BNP Paribas and was part of several large M&A and ECM transactions (Bharti-Zain, Bharti Infratel IPO, Schneider-Zicom among several others). He's also had a stint as an ecommerce entrepreneur having launched & led Mumbai's first online grocery player.

Equity Capital Markets

Dixon Technologies India Ltd / Equity Capital Markets

Dixon Technologies India Limited (DTIL) is raising approximately US$93.6m by selling 3.4m shares via a public offer on NSE &amp; BSE at a price of Rs1760-1766 (book building). Majority of the issue is an offer for sale (3.05m shares under OFS) and by the Motilal Oswal PE Fund (57%) and the promoters (33%) while fresh share issuance is only 0.34m (10%). DTIL is a leading player in the EMS/OMD industry in India and manufacturers LED TV, CFL lights &amp; Mobile phones for a variety of brands like Philips, Panasonic etc. The company has recorded strong sales and PAT CAGR of 34% and 78% in last 4 years along with strong return ratio (RoCE at 25.5% and RoE at 36.5%). However, we believe that the EMS/ODM industry has very low entry barriers and low margins thereby not justifying high valuations of 40xFy17 earnings. The company also has high client concentration with top two clients constituting 60% of the business and top 5 at 83% thereby adding to the potential risks. We would, therefore, avoid the public offering even as we are aware that that the Company is being marketed as a play on India's manufacturing resurgence (govt promoting domestic manufacturing of mobiles etc) and the momentum for IPOs, in general, remains strong.

Dixon Technologies India Limited (DTIL) is raising approximately US$93.6m by selling 3.4m shares via a public offer on NSE &amp; BSE at a price of Rs1760-1766 (book building). Majority of the issue is an offer for sale (3.05m shares under OFS) and by the Motilal Oswal PE Fund (57%) and the promoters (33%) while fresh share issuance is only 0.34m (10%). DTIL is a leading player in the EMS/OMD industry in India and manufacturers LED TV, CFL lights &amp; Mobile phones for a variety of brands like Philips, Panasonic etc. The company has recorded strong sales and PAT CAGR of 34% and 78% in last 4 years along with strong return ratio (RoCE at 25.5% and RoE at 36.5%). However, we believe that the EMS/ODM industry has very low entry barriers and low margins thereby not justifying high valuations of 40xFy17 earnings. The company also has high client concentration with top two clients constituting 60% of the business and top 5 at 83% thereby adding to the potential risks. We would, therefore, avoid the public offering even as we are aware that that the Company is being marketed as a play on India's manufacturing resurgence (govt promoting domestic manufacturing of mobiles etc) and the momentum for IPOs, in general, remains strong.

Dixon Technologies (IPO): An Expensive Play on the India EMS/ODM Manufacturing; Low Entry Barriers

United States

OSI Systems, Inc. produces medical monitoring and anesthesia systems; security and inspection systems; and lasers, optics, and optoelectronic components.  The Company's products include blood pressure monitors, anesthesia machines and hemoglobin saturation monitors; systems for inspecting baggage, people, and vehicles; and lasers, lenses, prisms, and microelectronic components.

Vishay Intertechnology, Inc. manufactures a broad line of passive and discreet active electronic components, particularly resistors, capacitors, inductors, diodes, and transistors.  The Company's products are utilized in computers, telephones, televisions, automobiles, household appliance, medical equipment, satellites, and military and aerospace equipment.

Agilysys, Inc. is a developer and marketer of proprietary enterprise software, services and solutions to the hospitality and retail industries. The Company specializes in market-leading point-of-sale, property management, inventory & procurement and mobile & wireless solutions that are designed to streamline operations, improve efficiency and enhance the consumer's experience.

ePlus inc. provides IT hardware, software and services. The Company offers IT solutions for data center, cloud computing, security, managed and professional services, lease financing, proprietary software, and other related products. ePlus focuses on serving the middle market and larger commercial enterprises as well as state and local governments.

Sanmina Corporation provides electronics contract manufacturing services to customers located around the world. The Company offers its customers expertise in new product introduction, manufacturing, and design and fabrication of complex interconnect products. Sanmina Corporation specializes in circuit fabrication, system assembly, integration, and high-end enclosures and cabling.

Rogers Corporation manufactures and markets specialty materials and components for applications in the communications, computer, imaging, consumer, and transportation markets.  The Company's products include elastomers, high frequency circuit materials, flexible circuit materials, molding materials, and composite materials.  Rogers sells its products around the world.

Belden Inc. designs, manufactures, and markets cable, connectivity, and networking products. The Company produces and sells a portfolio of cable, connectivity, and networking products into a variety of end markets, including industrial, enterprise, broadcast, and consumer electronics.

IPG Photonics Corporation produces high-power fiber lasers and amplifiers. The Company develops and commercializes optical fiber-based lasers used in a wide range of applications such as materials processing, telecommunications and medical applications.

CTS Corporation designs and manufactures electronic components and sensors to original equipment manufacturers in the automotive, communications, medical, defense and aerospace, industrial and computer markets.

PC Connection, Inc. is a direct marketer of personal computers and related peripherals, software, accessories, and networking products. The Company sells to small and medium-sized businesses. PC Connection carries high turnover products in inventory, and in addition provides customer service and technical support.

Cowell e Holdings Inc, is a holding company, which operates electronics and optical components manufacturing entities. The products include camera modules, optical lens and prisms.

IsuPetasys Co., Ltd. manufactures printed circuit boards (PCBs) specializing in high multilayer PCBs.  The Company exports its products to Cisco Systems, Brocade Communications Systems, and Sun Microsystems in the United States.

Nan Ya Printed Circuit Board Corporation manufactures and markets printed circuit boards (PCBs) and integrated circuit (IC) substrates.

Zhejiang Crystal-Optech Co., Ltd. researches, manufactures and markets photoelectric parts. The key products are OLPF, IR Cut Filter, IR Filter Housing Assembly, Thermal Diffusion Panel and Cover Glass.

Huagong Tech Co., Ltd. manufactures laser equipment, laser false-proof products, sensitive electronic components, optical telecommunication products, and biopharmaceuticals.  The Company also develops computer software and provides computer system integration services.

Sinbon Electronics Co., Ltd. markets cable, connectors, and modems.  The Company exports its products mainly to other Asian countries, America, and Europe.

Shenzhen Sunlord Electronics Co.,Ltd. manufactures and markets chip passive components including chip inductor, chip ferrite bead, chip varistor, NTC thermistor and chip common mode choke coil.

Shenzhen Sunlord Electronics Co, Ltd. (002138 CH)

Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. manufactures and markets electronic components and equipment.  The Company's products include capacitors, resistors, electronic materials, integrated circuits, and other related products.

Guangdong Fenghua Adv. Tech. (Hldg) Co (000636 CH)

Synnex Technology International Corporation markets personal computers, computer peripherals, multi-media products, network products, computer application software, electronic parts, and telecommunication products.

Synnex Technology International (2347 TT)

Tianma Microelectronics Co., Ltd. manufactures and markets liquid crystal displays (LCDs) and liquid crystal display modules.

Plexus Corp. is a participant in the electronics manufacturing services (EMS) industry, providing product design, supply chain, materials management, manufacturing, test, fulfillment, and aftermarket solutions to branded product companies in the wireline and networking, wireless infrastructure, medical, industrial and commercial, defense, security, and aerospace market sectors.

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Plexus Corp (PLXS US)

Plexus Corp: Expanding Market Presence in Industrial Sector - Major Drivers

Plexus Corp recently reported fiscal second quarter 2024 results which showcased the company's capacity to maintain a robust growth trajectory and...

Baptista Research

Plexus Corp: Initiation of Coverage - Discover Their Secret Strategy for Growth In 2024! - Major Drivers

This is our first report electronic manufacturing services provider, Plexus Corporation. The company's Q4 2023 earnings, a significant takeaway...

Baptista Research

Weekly Stock Bullfinder - Week of 11/14

This past week the news was dominated by political midterm election results and a brewing crypto market implosion but also featured a late week...

Weekly Stock Bull Finder

Declining Business Short Candidates: Sprouts, Plexus, Ormat, Itron

Declining Business Short Candidates... Our model list of secular decliners, "melting ice cubes", flawed business model candidates featuring...

Eric Fernandez, CFA

Dixon Technologies (IPO): An Expensive Play on the India EMS/ODM Manufacturing; Low Entry Barriers

Dixon Technologies India Limited (DTIL) is raising approximately US$93.6m by selling 3.4m shares via a public offer on NSE & BSE at a price of...

Asia Advisors

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