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

Skechers Usa Inc Cl A / Equity Capital Markets

<ul><li>Skechers managed to achieve a double-digit growth in all of their reportable sections in the recent quarterly result.</li><li>A positive sign which might help Skechers cope with the Omicron headwinds is that its direct-to-consumer business increased 44% in the last quarter, led by a 61% increase in the company's foreign business and a 35% increase in its domestic business.</li><li>The company has also made a move to penetrate the Philippines market by moving its operations from a third-party distributor to within the company itself.</li></ul>

Skechers managed to achieve a double-digit growth in all of their reportable sections in the recent quarterly result.A positive sign which might help Skechers cope with the Omicron headwinds is that its direct-to-consumer business increased 44% in the last quarter, led by a 61% increase in the company's foreign business and a 35% increase in its domestic business.The company has also made a move to penetrate the Philippines market by moving its operations from a third-party distributor to within the company itself.

<ul><li>Skechers reported a stellar second quarter for 2021 the top and the bottom line numbers surpassing Wall Street expectations and showing a strong year-over-year growth.</li><li>The footwear giant benefitted from growth across domestic and international channels, driven by strong wholesale as well as direct-to consumer sales.</li><li>Skechers’ direct-to-consumer sales increased by a staggering 137.8% to $507.9 million, backed by growth across international and domestic retail stores despite a slight drop in domestic e-commerce sales.</li></ul>

Skechers reported a stellar second quarter for 2021 the top and the bottom line numbers surpassing Wall Street expectations and showing a strong year-over-year growth.The footwear giant benefitted from growth across domestic and international channels, driven by strong wholesale as well as direct-to consumer sales.Skechers’ direct-to-consumer sales increased by a staggering 137.8% to $507.9 million, backed by growth across international and domestic retail stores despite a slight drop in domestic e-commerce sales.

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

We continue to see a mixed market, and weak market dynamics lead us to be cautious. One of the primary issues is weak breadth; the large-cap indexes (S&amp;P 500 and Nasdaq) remain bullish despite being held up by a relatively small number of mega-cap growth stocks, a condition that can persist for weeks or months. Ultimately, as long as there continues to be an absence of breakdowns at the index and Sector level we remain constructive overall.

We continue to see a mixed market, and weak market dynamics lead us to be cautious. One of the primary issues is weak breadth; the large-cap indexes (S&amp;P 500 and Nasdaq) remain bullish despite being held up by a relatively small number of mega-cap growth stocks, a condition that can persist for weeks or months. Ultimately, as long as there continues to be an absence of breakdowns at the index and Sector level we remain constructive overall.

U.S. Equity Strategy: Cautious Overall; Favor Large-Caps & Growth; Key Supports Holding In The U.S.

Investment Advisors, JL Warren Capital

Junheng Li

Investment Advisors

JL Warren Capital

JL Warren Capital LLC is a leading independent equity research firm focused on Chinese companies and listed multinationals in China. We employ a bottom-up research approach that takes great care to avoid the acquisition of material non-public information. Through investigative due diligence including channel surveys and interviews, our research helps clients to pinpoint the dislocations in the market.

Equity Bottom-Up

Q2 earnings combined with our ongoing checks into merchandisers lead us to believe that <a href="https://www.smartkarma.com/entities/baozun-inc" target="_blank" data-smartkarma-citation="entities:24184:1" rel="noopener">Baozun Inc. (BZUN US)</a> is using its balance sheet to finance customer inventory thus sacrificing cash flow to support earnings. At the same time, the addressable market for BZUN is shrinking as brand retailers take back their eCommerce operations as they have learned the ropes of running online stores.  All develop into following short thesis. <ol>
<li>Brand Operation SVP Departure to Join Topsports, Subsidiary of Belle and Competition to BZUN</li>
<li>Rising Debt to Finance Working Capital, Margin Expansion Reversed</li>
<li>Client Disintermediation</li>
</ol>Last but not least,<ol start="4"><li>CFO’s Consistently broken track record</li></ol>

Q2 earnings combined with our ongoing checks into merchandisers lead us to believe that Baozun Inc. (BZUN US) is using its balance sheet to finance customer inventory thus sacrificing cash flow to support earnings. At the same time, the addressable market for BZUN is shrinking as brand retailers take back their eCommerce operations as they have learned the ropes of running online stores.  All develop into following short thesis. 
Brand Operation SVP Departure to Join Topsports, Subsidiary of Belle and Competition to BZUN
Rising Debt to Finance Working Capital, Margin Expansion Reversed
Client Disintermediation
Last but not least,CFO’s Consistently broken track record

Baozun (NEGATIVE) Competition from Belle’s TopSports; Q2 Margin Miss; CFO’s Broken Record

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Topsports International Holdings / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/topsports-international" target="_blank" data-smartkarma-citation="entities:28153:1" rel="noopener">Topsports International (TOP HK)</a> is the sportswear division of Belle International. Topsports is the largest sportswear retailer in China as measured by retail sales value, with a 15.9% market share in 2018, according to Frost &amp; Sullivan. Topsports has filed for a Hong Kong IPO to raise potentially $1 billion.<div class="content-highlight">With enviable exposure to two of the largest global sportswear brands and one of the largest sportswear markets in the world, Topsports looks well positioned to benefit from consumers embracing the latest healthy lifestyles, increased sports participation rates and supportive Government policies in China. Overall, we believe that Topsport’s fundamentals offer more positives than negatives.</div>

Topsports International (TOP HK) is the sportswear division of Belle International. Topsports is the largest sportswear retailer in China as measured by retail sales value, with a 15.9% market share in 2018, according to Frost &amp; Sullivan. Topsports has filed for a Hong Kong IPO to raise potentially $1 billion.With enviable exposure to two of the largest global sportswear brands and one of the largest sportswear markets in the world, Topsports looks well positioned to benefit from consumers embracing the latest healthy lifestyles, increased sports participation rates and supportive Government policies in China. Overall, we believe that Topsport’s fundamentals offer more positives than negatives.

Topsports International IPO Initiation: No Sweat

United States

Skechers U.S.A., Inc. designs and markets branded contemporary casual, active, rugged, and lifestyle footwear for men, women, and children.  The Company sells its products to department stores and specialty retailers.  Skechers also sells its products internationally through distributors and directly to consumers through its own retail stores.

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Skechers Usa Inc Cl A (SKX US)

Skechers USA Inc. - Investment Thesis

Skechers managed to achieve a double-digit growth in all of their reportable sections in the recent quarterly result. A positive sign which might...

Baptista Research

Skechers USA Inc. - Investment Thesis

Skechers reported a stellar second quarter for 2021 the top and the bottom line numbers surpassing Wall Street expectations and showing a strong...

Baptista Research

U.S. Equity Strategy: Cautious Overall; Favor Large-Caps & Growth; Key Supports Holding In The U.S.

The S&P 500 remains bullish, recently hitting our 4400-4406 target as large-caps remain attractive. As long as support at the 50-day MA and 4257...

Vermilion Research

Baozun (NEGATIVE) Competition from Belle’s TopSports; Q2 Margin Miss; CFO’s Broken Record

Q2 earnings combined with our ongoing checks into merchandisers lead us to believe that Baozun Inc. (BZUN US) is using its balance sheet to finance...

JL Warren Capital

Topsports International IPO Initiation: No Sweat

Topsports International (TOP HK) is the sportswear division of Belle International. Topsports is the largest sportswear retailer in China as...

Arun George

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