Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Victor Galliano is an experienced equity banks analyst, having covered Latin America banks and non-bank financials for over 12 years, as well as more recently covering the Italian banks. He has worked in sell side equity research for 30 years in a career spanning Barclays, HSBC, BBVA LatInvest, Barings and NatWest.
Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.
The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Financials & FinTech research

Alibaba (BABA US): Unloved but Undeterred

Alibaba: A Detailed Look at the SOTP, and What that Tells Us About the Ant Group and Core Commerce

Ant Group: Regulatory Pressures Drive the State’s “big Data” Grab, and a Revised SOTP Valuation

Ant Group: IPO Suspension and the Big Data Angle

Ant Group: Limited but Positive 3Q20 Data Disclosed

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Equity Bottom-Up

Alibaba Group Holding  / Equity Bottom-Up

<ul>
<li>PBoC’s latest regulatory proposals point to increased anti-trust focus in non-bank payments</li>
<li>This ups the ante on <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group (BABA US)</a> and <a href="https://www.smartkarma.com/entities/ant-financial-services-group" target="_blank" data-smartkarma-citation="entities:24240:1" rel="noopener">Ant Group (6688 HK)</a>, in particular</li>
<li>Alibaba shares have recovered some ground since our 13<sup>th</sup> January report, yet Alibaba has barely narrowed the gap with <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>, in market cap-to-revenue terms</li>
<li>This latest PBoC announcement, at best, adds to delay the Ant Group IPO, and adds to bearish sentiment on Alibaba and, to a lesser degree, Tencent shares</li>
<li>We believe that the recent re-emergence of Jack Ma is not, per se, sufficient cause for Alibaba share price relief; we would recommend locking in recent gains on BABA</li>
<li>Risks to our cautious view on Alibaba and Ant Group include an agreement on mutually acceptable regulatory parameters between the PBoC and Ant Group that allows for the Ant IPO to proceed in the relatively near term</li>
</ul>


PBoC’s latest regulatory proposals point to increased anti-trust focus in non-bank payments
This ups the ante on Alibaba Group (BABA US) and Ant Group (6688 HK), in particular
Alibaba shares have recovered some ground since our 13th January report, yet Alibaba has barely narrowed the gap with Tencent Holdings (700 HK), in market cap-to-revenue terms
This latest PBoC announcement, at best, adds to delay the Ant Group IPO, and adds to bearish sentiment on Alibaba and, to a lesser degree, Tencent shares
We believe that the recent re-emergence of Jack Ma is not, per se, sufficient cause for Alibaba share price relief; we would recommend locking in recent gains on BABA
Risks to our cautious view on Alibaba and Ant Group include an agreement on mutually acceptable regulatory parameters between the PBoC and Ant Group that allows for the Ant IPO to proceed in the relatively near term


Alibaba (BABA US) & Ant Group: PBoC Proposals Threaten Tighter Regulations