Equity Analyst, LightStream Research

Oshadhi Kumarasiri

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<ul>
<li>A host of Japanese apparel brands are starting to reject cotton produced in the Xinjiang region.</li>
<li>Even though Fast Retailing is unlikely to stake a strong stand against the Xinjiang cotton controversy, actions by other Japanese brands could still affect Uniqlo in the Chinese market.</li>
<li>The Uniqlo brand resonates with Japan and a boycott of Japanese brands in China could have severe consequences to Uniqlo’s Chinese business.</li>
</ul>


A host of Japanese apparel brands are starting to reject cotton produced in the Xinjiang region.
Even though Fast Retailing is unlikely to stake a strong stand against the Xinjiang cotton controversy, actions by other Japanese brands could still affect Uniqlo in the Chinese market.
The Uniqlo brand resonates with Japan and a boycott of Japanese brands in China could have severe consequences to Uniqlo’s Chinese business.


China’s Boycott of Western Brands Could Extend to Japanese Brands Amidst Xinjiang Cotton Controversy

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.

Equity Capital Markets

Li Ning aims to raise around US$1bn via a top-up placement in Hong Kong. The company has been doing well over the past year and most of the past deals in the name have done well too.We have covered the previous placements in:<ul>
<li dir="ltr" aria-level="1">
<a href="https://www.smartkarma.com/insights/li-ning-placement-viva-china-selling-small-deal-size-and-overhang-is-manageable" target="_blank" data-smartkarma-citation="insights:37995" rel="noopener">Li Ning Placement - Viva China Selling - Small Deal Size and Overhang Is Manageable</a> </li>
<li dir="ltr" aria-level="1"><a href="https://www.smartkarma.com/insights/li-ning-placement-expectations-adjusted-overhang-removed" target="_blank" data-smartkarma-citation="insights:11323" rel="noopener">Li Ning Placement - Expectations Adjusted, Overhang Removed</a></li>
<li dir="ltr" aria-level="1"><a href="https://www.smartkarma.com/insights/li-ning-just-the-start-of-tpg-exit" target="_blank" data-smartkarma-citation="insights:8239" rel="noopener">Li Ning - Just the Start of TPG Exit</a></li>
</ul>

Li Ning aims to raise around US$1bn via a top-up placement in Hong Kong. The company has been doing well over the past year and most of the past deals in the name have done well too.We have covered the previous placements in:

Li Ning Placement - Viva China Selling - Small Deal Size and Overhang Is Manageable 
Li Ning Placement - Expectations Adjusted, Overhang Removed
Li Ning - Just the Start of TPG Exit


Li Ning Placement - Momentum Remains Strong. Past Deals Have Done Well.

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.

<ul><li>Nike's strong set of results re-emphasized its strong competitive positioning and market leadership in its domain as the company saw a staggering 95% growth in the fourth quarter and a 19% growth for the fiscal year.</li><li>The company witnessed a broad-based growth in Q4, led by North America at more than 140%.</li><li>Overall, we are optimistic about Nike's growth strategy and give it an ‘Outperform’ rating with a revised target price.</li></ul>

Nike's strong set of results re-emphasized its strong competitive positioning and market leadership in its domain as the company saw a staggering 95% growth in the fourth quarter and a 19% growth for the fiscal year.The company witnessed a broad-based growth in Q4, led by North America at more than 140%.Overall, we are optimistic about Nike's growth strategy and give it an ‘Outperform’ rating with a revised target price.

Nike Inc Investment Thesis, Key Drivers, Financial & Price Forecasts, DCF Valuation 10/21

<ul>
<li>After growing at around 7% over 2012-19, China’s GDP growth dipped to 2.3% in 2020 due to COVID-19. The World Bank estimates the GDP growth to bounce back to 8.4% in 2021 but projects a rapid deceleration (5.4% in 2022) thereafter due to multiple economic headwinds.</li>
<li>We think that the Chinese sportswear market is highly influenced by the GDP growth as it declined at an annual average rate of 2% during 2011-13 when the GDP growth decelerated from 9.6% to 7.8%.</li>
</ul>


After growing at around 7% over 2012-19, China’s GDP growth dipped to 2.3% in 2020 due to COVID-19. The World Bank estimates the GDP growth to bounce back to 8.4% in 2021 but projects a rapid deceleration (5.4% in 2022) thereafter due to multiple economic headwinds.
We think that the Chinese sportswear market is highly influenced by the GDP growth as it declined at an annual average rate of 2% during 2011-13 when the GDP growth decelerated from 9.6% to 7.8%.


Chinese Sportswear: Macro Headwinds Pose Significant Downside Risks

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.

United States

NIKE, Inc. designs, develops, and markets athletic footwear, apparel, equipment, and accessory products for men, women, and children. The Company sells its products worldwide to retail stores, through its own stores, subsidiaries, and distributors.

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Nike (NKE US)

China’s Boycott of Western Brands Could Extend to Japanese Brands Amidst Xinjiang Cotton Controversy

A host of new Japanese apparel makers including Sanyo Shokai and TSI have recently become a part of a growing list of international companies to...

Oshadhi Kumarasiri

Li Ning Placement - Momentum Remains Strong. Past Deals Have Done Well.

Li Ning aims to raise around US$1bn via a top-up placement in Hong Kong. The company has been doing well over the past year and most of the past...

Sumeet Singh

Nike Inc Investment Thesis, Key Drivers, Financial & Price Forecasts, DCF Valuation 10/21

Nike's strong set of results re-emphasized its strong competitive positioning and market leadership in its domain as the company saw a staggering...

Baptista Research

Chinese Sportswear: Macro Headwinds Pose Significant Downside Risks

The Chinese sportswear market is highly influenced by the GDP growth as it declined at an annual average rate of 2% during 2011-13 when the GDP...

Oshadhi Kumarasiri

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

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