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

Tyson Foods Inc Cl A / Equity Capital Markets

<ul><li>Tyson Foods delivered a decent quarterly result which was supported by continued strength in consumer demand for protein.</li><li>In addition, the company has clear initiatives to reduce complexity in its plant, reduce transportation and handling, and reduce waste.</li><li>Given their recent performance, we are optimistic about Tyson Foods and believe it deserves a 'Hold' rating at current levels.</li></ul>

Tyson Foods delivered a decent quarterly result which was supported by continued strength in consumer demand for protein.In addition, the company has clear initiatives to reduce complexity in its plant, reduce transportation and handling, and reduce waste.Given their recent performance, we are optimistic about Tyson Foods and believe it deserves a 'Hold' rating at current levels.

Tyson Foods: How Is The Company Handling The Price-Volume Mix Situation? (12/2021)

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<p>The shares of <a href="https://www.smartkarma.com/entities/wh-group-ltd" target="_blank" data-smartkarma-citation="entities:13200:1" rel="noopener">WH Group (288 HK)</a> to be returned to shareholders after the Buyback Offer have been returned to shareholders as of this morning. Some appeared to have sold yesterday, some today, and some may not "get notice" of the return until tonight, which means they would sell tomorrow or later. </p><p>Now we look ahead. </p><p>Based on a pure price-vs-peers basis, the price today is about 3% below where it was compared to a mix of Chinese and global peers as of the day before the announcement. </p><p>However, that does not include the 15% accretion to EPS from the buyback. That puts the stock a fair bit cheaper than its peer basket since the announcement 3+ months ago. </p><p>And it has ALWAYS traded cheap on governance concerns (and one reason why showed up last month in a public spat between the spurned first son and the chairman, discussed in <a href="https://www.smartkarma.com/insights/wh-group-stock-plummets-as-ousted-son-drags-pigs-into-the-mud" target="_blank" data-smartkarma-citation="insights:56282" rel="noopener">WH Group - Stock Plummets as Ousted Son Drags Pigs Into The Mud</a>. The question investors should ask themselves is.... if the family were ousted, would that be good for the share price? </p><p>If the answer is yes, then the exposure here probably has some convexity given the shares trade at a multi-year low to Peers on an accretion-adjusted basis.</p>

The shares of WH Group (288 HK) to be returned to shareholders after the Buyback Offer have been returned to shareholders as of this morning. Some appeared to have sold yesterday, some today, and some may not "get notice" of the return until tonight, which means they would sell tomorrow or later. Now we look ahead. Based on a pure price-vs-peers basis, the price today is about 3% below where it was compared to a mix of Chinese and global peers as of the day before the announcement. However, that does not include the 15% accretion to EPS from the buyback. That puts the stock a fair bit cheaper than its peer basket since the announcement 3+ months ago. And it has ALWAYS traded cheap on governance concerns (and one reason why showed up last month in a public spat between the spurned first son and the chairman, discussed in WH Group - Stock Plummets as Ousted Son Drags Pigs Into The Mud. The question investors should ask themselves is.... if the family were ousted, would that be good for the share price? If the answer is yes, then the exposure here probably has some convexity given the shares trade at a multi-year low to Peers on an accretion-adjusted basis.

<ul>
<li>Tyson Foods delivered a decent quarter with the company’s overall production and distribution network being well-positioned to meet the meat demand across the country.</li>
<li>Volumes were not a problem in the quarter with rising demand from foodservice.</li>
<li>Additionally, in this recent quarter, the management continued to build financial strength by using higher operating cash flow to reduce debt.</li>
</ul>


Tyson Foods delivered a decent quarter with the company’s overall production and distribution network being well-positioned to meet the meat demand across the country.
Volumes were not a problem in the quarter with rising demand from foodservice.
Additionally, in this recent quarter, the management continued to build financial strength by using higher operating cash flow to reduce debt.


Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

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.

<div><p>Monde Nissin (MNC), a food manufacturer in the Philippines, aims to raise around US$1bn in its Philippines IPO.</p></div><div><p>It has two main businesses: Asia-Pacific Branded Food and Beverage Business (BFB), which sells instant noodles, biscuits and other products, and meat alternative (MA) business which includes Quorn and Cauldron meat alternatives brands.</p></div><div><p>MNC has a high market share in the Philippines in the instant noodles and biscuits segment along with a few other categories as well. Quorn as well has a strong lead over its next largest peers in the Chicken alternative meat segment in the grocery channel. </p></div><div>
<p>In our previous notes, </p>
<ul>
<li>
<a href="https://www.smartkarma.com/insights/monde-nissin-pre-ipo-the-positives-high-market-share" target="_blank" rel="noopener">Monde Nissin Pre-IPO - The Positives - High Market Share</a>, and <a href="https://www.smartkarma.com/insights/monde-nissin-pre-ipo-the-negatives-high-debt-div-payments-floundering-ma" target="_blank" rel="noopener">Monde Nissin Pre-IPO - The Negatives - High Debt, Div Payments, Floundering MA</a> we spoke about the company background and its past performance.</li>
<li>In <a href="https://www.smartkarma.com/insights/monde-nissin-pre-ipo-peer-comparison-for-food-business" target="_blank" rel="noopener">Monde Nissin Pre-IPO - Peer Comparison for Food Business</a> and <a href="https://www.smartkarma.com/insights/monde-nissin-pre-ipo-peer-comparison-for-meat-alternative-business" target="_blank" rel="noopener">Monde Nissin Pre-IPO - Peer Comparison for Meat Alternative Business</a> we compared the two business with their regional and global peers.</li>
<li>In <a href="https://www.smartkarma.com/insights/monde-nissin-pre-ipo-thoughts-on-valuation" target="_blank" rel="noopener">Monde Nissin Pre-IPO - Thoughts on Valuation</a> and <a href="https://www.smartkarma.com/insights/monde-nissin-pre-ipo-not-cheap-but-sensible" target="_blank" rel="noopener">Monde Nissin Pre-IPO - Not Cheap but Sensible</a> we discussed our thoughts on valuation. </li>
</ul>
</div><div><p>In this note, we’ll talk about the final pricing and other dynamics.</p></div>

Monde Nissin (MNC), a food manufacturer in the Philippines, aims to raise around US$1bn in its Philippines IPO.It has two main businesses: Asia-Pacific Branded Food and Beverage Business (BFB), which sells instant noodles, biscuits and other products, and meat alternative (MA) business which includes Quorn and Cauldron meat alternatives brands.MNC has a high market share in the Philippines in the instant noodles and biscuits segment along with a few other categories as well. Quorn as well has a strong lead over its next largest peers in the Chicken alternative meat segment in the grocery channel. 
In our previous notes, 


Monde Nissin Pre-IPO - The Positives - High Market Share, and Monde Nissin Pre-IPO - The Negatives - High Debt, Div Payments, Floundering MA we spoke about the company background and its past performance.
In Monde Nissin Pre-IPO - Peer Comparison for Food Business and Monde Nissin Pre-IPO - Peer Comparison for Meat Alternative Business we compared the two business with their regional and global peers.
In Monde Nissin Pre-IPO - Thoughts on Valuation and Monde Nissin Pre-IPO - Not Cheap but Sensible we discussed our thoughts on valuation. 

In this note, we’ll talk about the final pricing and other dynamics.

Monde Nissin IPO - Might Not Be a High Flyer but Worth the Ride, Quorn Tastes Good

Investment Research - Asia Consumer Sector, Investory

Devi Subhakesan

Investment Research - Asia Consumer Sector

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/godrej-agrovet-ltd" target="_blank" data-smartkarma-citation="entities:25916:1" rel="noopener">Godrej Agrovet (GOAGRO IN)</a>, a conglomerate in the Agri/animal products space, now derives a <strong>dominant share of its profits from agro-chemicals</strong> and could be poised to benefit from a rise in agri-related demand as rural economy is shifting into high gear led by greater Government spending. The stock, however, is trading more than 20% below its 2017 listing price, likely bogged down by negative sentiment over weak animal feed (poultry) demand, partly attributable to social media rumors that linked chicken to COVID transmission. <strong>Expect the stock to rerate as Godrej Agrovet's rising agro chem</strong><strong> profile comes into greater market focus</strong>.  A quick Sum-of-the-Parts (SOTP) valuation based on peer average multiples for individual segments suggests that it is currently trading at a meaningful discount.</p><p><strong>2QFY20 results announced</strong> last week marks a notable uptick in profits led by agro chem and packaged foods, despite COVID-led market restrictions; however, earnings recovery from animal feed, dairy, and oil palm segments remained weak. We believe revenue and profit outlook across most segments could begin to look up as (1) agri-related spending picks up as rural economy is shifting into high gear led by greater Government spending (2) COVID-led operational/logistics restrictions ease (3) stronger export demand for agrochemical ingredients and intermediates as buyers widen sourcing beyond China (4) shift in consumer behavior drive demand for processed and packed foods.   </p><p><strong>In the detailed note below,</strong> we analyze Godrej Agrovet's segment-wise earnings outlook going forward based on sector fundamentals and management discussion post 2Q2020 results. We also assess the stock's investment upside based on SOTP valuation. </p>

Godrej Agrovet (GOAGRO IN), a conglomerate in the Agri/animal products space, now derives a dominant share of its profits from agro-chemicals and could be poised to benefit from a rise in agri-related demand as rural economy is shifting into high gear led by greater Government spending. The stock, however, is trading more than 20% below its 2017 listing price, likely bogged down by negative sentiment over weak animal feed (poultry) demand, partly attributable to social media rumors that linked chicken to COVID transmission. Expect the stock to rerate as Godrej Agrovet's rising agro chem profile comes into greater market focus.  A quick Sum-of-the-Parts (SOTP) valuation based on peer average multiples for individual segments suggests that it is currently trading at a meaningful discount.2QFY20 results announced last week marks a notable uptick in profits led by agro chem and packaged foods, despite COVID-led market restrictions; however, earnings recovery from animal feed, dairy, and oil palm segments remained weak. We believe revenue and profit outlook across most segments could begin to look up as (1) agri-related spending picks up as rural economy is shifting into high gear led by greater Government spending (2) COVID-led operational/logistics restrictions ease (3) stronger export demand for agrochemical ingredients and intermediates as buyers widen sourcing beyond China (4) shift in consumer behavior drive demand for processed and packed foods.   In the detailed note below, we analyze Godrej Agrovet's segment-wise earnings outlook going forward based on sector fundamentals and management discussion post 2Q2020 results. We also assess the stock's investment upside based on SOTP valuation. 

Godrej Agrovet (GOAGRO IN): More Agro Chem than Animal Feed; Rising Rural Spend Is a TailWind

United States

Tyson Foods, Inc. produces, distributes, and markets chicken, beef, pork, prepared foods and related allied products.  The Company's products are marketed and sold to national and regional grocery retailers, regional grocery wholesalers, meat distributors, warehouse club stores, military commissaries, and industrial food processing companies.

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Tyson Foods Inc Cl A (TSN US)

Tyson Foods: How Is The Company Handling The Price-Volume Mix Situation? (12/2021)

Tyson Foods delivered a decent quarterly result which was supported by continued strength in consumer demand for protein. In addition, the company...

Baptista Research

WH Group Post-Tender Outlook

Buyback Offer shares are returned. Now we look forward. Of course, we did before in assuming participation rates. The stock is cheap on accretion...

Travis Lundy

Tyson Foods Inc. - Investment Thesis

Tyson Foods delivered a decent quarter with the company’s overall production and distribution network being well-positioned to meet the meat...

Baptista Research

Monde Nissin IPO - Might Not Be a High Flyer but Worth the Ride, Quorn Tastes Good

Monde Nissin aims to raise around US$1bn in its Philippines IPO. It has two main businesses: Food and Beverage, which sells instant noodles, and...

Sumeet Singh

Godrej Agrovet (GOAGRO IN): More Agro Chem than Animal Feed; Rising Rural Spend Is a TailWind

Godrej Agrovet (GOAGRO IN), a conglomerate in the Agri/animal products space, now derives a dominant share of its profits from agro-chemicals and...

Devi Subhakesan

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