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>In the first quarter of 2024, SPS Commerce launched a strong start to the year with a 19% increase in revenue, amounting to $149.6 million, along with a corresponding growth in recurring revenue.</li><li>Notably, SPS Commerce capitalized on its position as a leading supplier of supply chain cloud services by intensifying investments in automation, reflecting the trend among supply chain and manufacturing leaders, 74% of whom are planning to invest in supply chain innovation and technology.</li><li>Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.</li></ul>

In the first quarter of 2024, SPS Commerce launched a strong start to the year with a 19% increase in revenue, amounting to $149.6 million, along with a corresponding growth in recurring revenue.Notably, SPS Commerce capitalized on its position as a leading supplier of supply chain cloud services by intensifying investments in automation, reflecting the trend among supply chain and manufacturing leaders, 74% of whom are planning to invest in supply chain innovation and technology.Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

SPS Commerce Inc.: Network Effects in Business Model & 3 Pivotal Growth Drivers

<ul><li>SPS Commerce posted strong financial results for Q4 2023, marking the 92nd consecutive quarter of revenue growth.</li><li>Revenue for the full year grew 19% to $536.9 million, driven by a 20% growth in recurring revenue which was led by 20% growth in fulfillment and 10% growth in analytics.</li><li>The number of recurring revenue customers also increased, reaching around 44,800.</li></ul>

SPS Commerce posted strong financial results for Q4 2023, marking the 92nd consecutive quarter of revenue growth.Revenue for the full year grew 19% to $536.9 million, driven by a 20% growth in recurring revenue which was led by 20% growth in fulfillment and 10% growth in analytics.The number of recurring revenue customers also increased, reaching around 44,800.

SPS Commerce Inc.: Is Its Community-Driven Business Model Sustainable? - Major Drivers

<ul><li>This is our first report on SPS Commerce, the provider of on-demand supply chain management solutions.</li><li>The company's total revenue increment by 18% in the quarter was notable, and the recurring revenue showed a promising 20% increase.</li><li>In this report, we have carried out a fundamental analysis of the historical financial statements of the company.</li></ul>

This is our first report on SPS Commerce, the provider of on-demand supply chain management solutions.The company's total revenue increment by 18% in the quarter was notable, and the recurring revenue showed a promising 20% increase.In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

SPS Commerce Inc.: Initiation of Coverage - Its Bold Moves for Unstoppable Organic and Inorganic Growth! – Major Drivers

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.

Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/linklogis" target="_blank" data-smartkarma-citation="entities:31126:1" rel="noopener">Linklogis (9959 HK)</a> is a leading technology solution provider for supply chain finance in China. Its solutions optimise the payment cycle of supply chain transactions and digitalize the entire workflow of supply chain finance. Linklogis will commence trading on Friday, 9 April. Linklogis priced its IPO at HK$17.58 and <a href="https://inews.hket.com/article/2926566/%E3%80%90%E6%96%B0%E8%82%A1IPO%E3%80%91%E8%81%AF%E6%98%93%E8%9E%8D%E7%A7%91%E6%8A%809959%E6%9A%97%E7%9B%A4%E3%80%80%E7%8F%BE%E5%8D%876-%E3%80%81%E6%97%A9%E6%AE%B5%E6%9B%BE%E8%B7%8C%E8%BF%91%E4%B8%80%E6%88%90?mtc=40001&amp;srkw=IPO%E6%9C%80%E5%BF%AB%E6%9C%80%E9%BD%8A" target="_blank" rel="noopener">currently trading around 6% higher</a> at HK$18.70 in the Futu securities grey market. The grey market performance is a welcome surprise in light of the choppy market conditions and declining market sentiment on Chinese tech names. The most recent HKEx tech IPO, <a href="https://www.smartkarma.com/entities/bairong" target="_blank" data-smartkarma-citation="entities:31486:1" rel="noopener">Bairong (1569395D CH)</a>, closed -16% below its IPO price on the first day and has not yet recovered.    </p></div><div><p>In <a href="https://www.smartkarma.com/insights/linklogis-ipo-initiation-isupply" target="_blank" data-smartkarma-citation="insights:47017" rel="noopener">Linklogis IPO Initiation: ISupply</a>, we stated that Linklogis is an attractive play on China’s supply chain finance market by combining a sensible monetisation model, high customer retention rate (good revenue visibility) and strong operating leverage. In <a href="https://www.smartkarma.com/insights/linklogis-ipo-every-little-helps" target="_blank" data-smartkarma-citation="insights:49480" rel="noopener">Linklogis IPO: Every Little Helps</a>, we noted that based on the PHIP which discloses the 2020 results and recent developments, we continue to believe that Linklogis’ fundamentals are attractive. In <a href="https://www.smartkarma.com/insights/linklogis-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:49693" rel="noopener">Linklogis IPO: Valuation Insights</a>, we noted that the IPO price range is reasonable.</p></div><div><div><div class="content-highlight"><p>Updating for the final IPO net raise, our base-case DCF derived price target of HK$19.28 per share. Our DCF sensitivity analysis shows that the IPO price remains reasonable and the grey market factors in achievable market share and margin forecasts. We continue to think that the IPO price represents good value. </p></div></div></div>

Linklogis (9959 HK) is a leading technology solution provider for supply chain finance in China. Its solutions optimise the payment cycle of supply chain transactions and digitalize the entire workflow of supply chain finance. Linklogis will commence trading on Friday, 9 April. Linklogis priced its IPO at HK$17.58 and currently trading around 6% higher at HK$18.70 in the Futu securities grey market. The grey market performance is a welcome surprise in light of the choppy market conditions and declining market sentiment on Chinese tech names. The most recent HKEx tech IPO, Bairong (1569395D CH), closed -16% below its IPO price on the first day and has not yet recovered.    In Linklogis IPO Initiation: ISupply, we stated that Linklogis is an attractive play on China’s supply chain finance market by combining a sensible monetisation model, high customer retention rate (good revenue visibility) and strong operating leverage. In Linklogis IPO: Every Little Helps, we noted that based on the PHIP which discloses the 2020 results and recent developments, we continue to believe that Linklogis’ fundamentals are attractive. In Linklogis IPO: Valuation Insights, we noted that the IPO price range is reasonable.Updating for the final IPO net raise, our base-case DCF derived price target of HK$19.28 per share. Our DCF sensitivity analysis shows that the IPO price remains reasonable and the grey market factors in achievable market share and margin forecasts. We continue to think that the IPO price represents good value. 

<div><p><a href="https://www.smartkarma.com/entities/linklogis" target="_blank" data-smartkarma-citation="entities:31126:1" rel="noopener">Linklogis (LINK HK)</a> is a leading technology solution provider for supply chain finance in China. Its solutions optimise the payment cycle of supply chain transactions and digitalize the entire workflow of supply chain finance. Linklogis is backed by <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a>, CITIC Capital, GIC and <a href="https://www.smartkarma.com/entities/standard-chartered-plc" target="_blank" data-smartkarma-citation="entities:193:1" rel="noopener">Standard Chartered (STAN LN)</a>. </p></div><div><p>At the proposed IPO price range of HK$16.28-18.28 per share, Linklogis will have a market cap of HK$36,864-41,393 million ($4.7-5.3 billion). At the mid-point of the IPO price range, the net proceeds are HK$7,581.3 million ($976 million). Six cornerstone investors will purchase $365 million worth of the offer shares (36.22% of the offer shares at the mid-point of the IPO price range). The cornerstone investors are BlackRock, Fidelity International, Janus Henderson, Ontario Teachers’, Sequoia Funds and EDB Investments. </p></div><div><div>
<p>In <a href="https://www.smartkarma.com/insights/linklogis-ipo-initiation-isupply" target="_blank" data-smartkarma-citation="insights:47017" rel="noopener">Linklogis IPO Initiation: ISupply</a>, we stated that Linklogis is an attractive play on China’s supply chain finance market by combining a sensible monetisation model, high customer retention rate (good revenue visibility) and strong operating leverage. In <a href="https://www.smartkarma.com/insights/linklogis-ipo-every-little-helps" target="_blank" data-smartkarma-citation="insights:49480" rel="noopener">Linklogis IPO: Every Little Helps</a>, we noted that based on the PHIP which discloses the 2020 results and recent developments, we continue to believe that Linklogis’ fundamentals are attractive.</p>
<div class="content-highlight"><p>Notwithstanding the recent de-rating of Chinese tech names, our valuation analysis suggests that the IPO price range is attractive. Overall, we would participate in the IPO. </p></div>
</div></div>

Linklogis (LINK HK) is a leading technology solution provider for supply chain finance in China. Its solutions optimise the payment cycle of supply chain transactions and digitalize the entire workflow of supply chain finance. Linklogis is backed by Tencent Holdings (700 HK), CITIC Capital, GIC and Standard Chartered (STAN LN). At the proposed IPO price range of HK$16.28-18.28 per share, Linklogis will have a market cap of HK$36,864-41,393 million ($4.7-5.3 billion). At the mid-point of the IPO price range, the net proceeds are HK$7,581.3 million ($976 million). Six cornerstone investors will purchase $365 million worth of the offer shares (36.22% of the offer shares at the mid-point of the IPO price range). The cornerstone investors are BlackRock, Fidelity International, Janus Henderson, Ontario Teachers’, Sequoia Funds and EDB Investments. 
In Linklogis IPO Initiation: ISupply, we stated that Linklogis is an attractive play on China’s supply chain finance market by combining a sensible monetisation model, high customer retention rate (good revenue visibility) and strong operating leverage. In Linklogis IPO: Every Little Helps, we noted that based on the PHIP which discloses the 2020 results and recent developments, we continue to believe that Linklogis’ fundamentals are attractive.
Notwithstanding the recent de-rating of Chinese tech names, our valuation analysis suggests that the IPO price range is attractive. Overall, we would participate in the IPO. 


United States

SPS Commerce Inc provides on-demand supply chain management solutions through an online hosted software suite.  The Company uses pre-built integrations to eliminate on-premise software and support staff to shorten supply cycle times, optimize inventory levels and reduce costs.

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Sps Commerce (SPSC US)

SPS Commerce Inc.: Network Effects in Business Model & 3 Pivotal Growth Drivers

In the first quarter of 2024, SPS Commerce launched a strong start to the year with a 19% increase in revenue, amounting to $149.6 million, along...

Baptista Research

SPS Commerce Inc.: Is Its Community-Driven Business Model Sustainable? - Major Drivers

SPS Commerce posted strong financial results for Q4 2023, marking the 92nd consecutive quarter of revenue growth. Revenue for the full year grew...

Baptista Research

SPS Commerce Inc.: Initiation of Coverage - Its Bold Moves for Unstoppable Organic and Inorganic Growth! – Major Drivers

This is our first report on SPS Commerce, the provider of on-demand supply chain management solutions. The company's total revenue increment by...

Baptista Research

Linklogis IPO: Trading Debut

Linklogis priced its IPO at HK$17.58 and trading around 6% higher at HK$18.70 in the Futu securities grey market. We continue to think that the IPO...

Arun George

Linklogis IPO: Valuation Insights

Linklogis has launched its IPO to raise net proceeds of $976m at the mid-point. Notwithstanding the recent de-rating of Chinese tech, we think that...

Arun George

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