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>Aflac delivered an all-around beat in the previous quarter, with a notable 12.4% year-over-year increase in sales in Japan.</li><li>The Japanese market's success is attributed to a significant surge in cancer insurance sales, particularly through collaborations with Japan Post Company and Japan Post Insurance.</li><li>As the company continues to strengthen its market position, the commitment to prudent liquidity and capital management remains unwavering.</li></ul>

Aflac delivered an all-around beat in the previous quarter, with a notable 12.4% year-over-year increase in sales in Japan.The Japanese market's success is attributed to a significant surge in cancer insurance sales, particularly through collaborations with Japan Post Company and Japan Post Insurance.As the company continues to strengthen its market position, the commitment to prudent liquidity and capital management remains unwavering.

Aflac Incorporated: Key Strategies Driving Their Financial Triumph in Japan and the U.S.! - Major Drivers

<ul><li>Aflac managed to exceed analyst expectations in terms of revenue and earnings.</li><li>The company's diligent efforts and strategic initiatives in the United States and Japan have yielded strong results, positioning Aflac for future growth.</li><li>In Japan, the rollout of new products like WINGS cancer insurance and refreshed policies have contributed to significant sales growth, particularly in the cancer insurance segment.</li></ul>

Aflac managed to exceed analyst expectations in terms of revenue and earnings.The company's diligent efforts and strategic initiatives in the United States and Japan have yielded strong results, positioning Aflac for future growth.In Japan, the rollout of new products like WINGS cancer insurance and refreshed policies have contributed to significant sales growth, particularly in the cancer insurance segment.

Aflac Incorporated: Strategic Alliances That Are Set to Propel Their Future! - Major Drivers

<ul><li>This is our first report on Aflac Incorporated, a prominent player in the American insurance industry.</li><li>The year's first quarter proved promising for Aflac, as the company reported solid earnings results despite a material yen weakening.</li><li>The operations in Japan saw continued sales improvements, driven by the rollout of new and refreshed products, particularly the cancer insurance policy.</li></ul>

This is our first report on Aflac Incorporated, a prominent player in the American insurance industry.The year's first quarter proved promising for Aflac, as the company reported solid earnings results despite a material yen weakening.The operations in Japan saw continued sales improvements, driven by the rollout of new and refreshed products, particularly the cancer insurance policy.

Aflac Incorporated: Initiation of Coverage – Business Structure and Competitive Edge

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

On 14 May, <a href="https://www.smartkarma.com/entities/japan-post-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:359:1" rel="noopener">Japan Post Holdings (6178 JP)</a> announced earnings, a new Medium Term Management Plan called <a href="https://www.japanpost.jp/en/ir/news/jpn/pdf/20210514_01.pdf" target="_blank" rel="noopener">JP Vision 2025</a>, and an expected sale of shares of subsidiary <a href="https://www.smartkarma.com/entities/japan-post-insurance-co-ltd" target="_blank" data-smartkarma-citation="entities:840:1" rel="noopener">Japan Post Insurance (7181 JP)</a> so that it would end up owning less than 50.00% after the ToSTNeT-3 sale to be conducted 17 May, and the placing of a certain number of shares in trust so that JPH's voting rights into JPI became 49.9%. In the original <a href="https://www.japanpost.jp/en/ir/news/jpn/pdf/20210514_02.pdf" target="_blank" rel="noopener">announcement</a> of the expected sale of JPI shares, made with earnings and the Mid Term Plan announcement on 14 May, JPH said... <blockquote>The Company plans to utilize the funds earned from this disposal of shares for purposes such as the enhancement of corporate value of the Company and the Japan Post Group.</blockquote>On the 17th of May, the following business day, JPH sold that very large block of shares. Yesterday after the close, <a href="https://www.smartkarma.com/entities/japan-post-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:359:1" rel="noopener">Japan Post Holdings (6178 JP)</a> announced that it had arranged the trust to take 559,900 shares of <a href="https://www.smartkarma.com/entities/japan-post-insurance-co-ltd" target="_blank" data-smartkarma-citation="entities:840:1" rel="noopener">Japan Post Insurance (7181 JP)</a> (details in the discussion point <a href="https://www.smartkarma.com/insights/huge-japan-post-insurance-buyback-mooted-decks-cleared-time-to-buy" target="_blank" rel="noopener">here</a>) so that it only owned 49.90%, thereby lifting certain restrictions placed on JPI by the Postal Service Privatization Act and lifting certain reporting requirements on JPH under the Insurance Business Act because it no longer held more than 50% of an insurer.<div class="content-highlight">Today after the close, <a href="https://www.smartkarma.com/entities/japan-post-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:359:1" rel="noopener">Japan Post Holdings (6178 JP)</a> made a Japanese-only <a href="https://www.smartkarma.com/insights/huge-japan-post-insurance-buyback-mooted-decks-cleared-time-to-buy" target="_blank" rel="noopener">announcement</a> that it would buy back up to 276,090,500 shares (6.14% of shares out) for up to ¥250 billion in a ToSTNeT-3 buyback conducted at ¥905.5/share on 11 June 2021 before the open. </div>In the <a href="https://www.japanpost.jp/group/governance/pdf/01.pdf" target="_blank" rel="noopener">Corporate Governance Report</a> published (in Japanese only) on 10 May 2021, the company outlined its policy of not favouring the major shareholder (the Finance Ministry owned 63.29% of shares out or creating a disadvantage for minority shareholders. The ToSTNeT-3 buyback is open to all, and therefore fits the goal of JPH being able to treat all shareholders equally. And it leaves the shares in an interesting position.

On 14 May, Japan Post Holdings (6178 JP) announced earnings, a new Medium Term Management Plan called JP Vision 2025, and an expected sale of shares of subsidiary Japan Post Insurance (7181 JP) so that it would end up owning less than 50.00% after the ToSTNeT-3 sale to be conducted 17 May, and the placing of a certain number of shares in trust so that JPH's voting rights into JPI became 49.9%. In the original announcement of the expected sale of JPI shares, made with earnings and the Mid Term Plan announcement on 14 May, JPH said... The Company plans to utilize the funds earned from this disposal of shares for purposes such as the enhancement of corporate value of the Company and the Japan Post Group.On the 17th of May, the following business day, JPH sold that very large block of shares. Yesterday after the close, Japan Post Holdings (6178 JP) announced that it had arranged the trust to take 559,900 shares of Japan Post Insurance (7181 JP) (details in the discussion point here) so that it only owned 49.90%, thereby lifting certain restrictions placed on JPI by the Postal Service Privatization Act and lifting certain reporting requirements on JPH under the Insurance Business Act because it no longer held more than 50% of an insurer.Today after the close, Japan Post Holdings (6178 JP) made a Japanese-only announcement that it would buy back up to 276,090,500 shares (6.14% of shares out) for up to ¥250 billion in a ToSTNeT-3 buyback conducted at ¥905.5/share on 11 June 2021 before the open. In the Corporate Governance Report published (in Japanese only) on 10 May 2021, the company outlined its policy of not favouring the major shareholder (the Finance Ministry owned 63.29% of shares out or creating a disadvantage for minority shareholders. The ToSTNeT-3 buyback is open to all, and therefore fits the goal of JPH being able to treat all shareholders equally. And it leaves the shares in an interesting position.

Japan Post Holdings BUYBACK - Recycling Sale Proceeds As Expected; No BIG Catalyst Yet

That's it. It has started. The story and long-term look-through reason why it was not a bad idea to buy the last offering from <a href="https://www.smartkarma.com/entities/japan-post-insurance-co-ltd" target="_blank" data-smartkarma-citation="entities:840:1" rel="noopener">Japan Post Insurance (7181 JP)</a> when <a href="https://www.smartkarma.com/entities/japan-post-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:359:1" rel="noopener">Japan Post Holdings (6178 JP)</a> in April 2019 has now come into the clear. Clearly, the METHOD of the buyback in April 2019 combined with the Really Quite Awful And Very Bad Investor Placement by Daiwa in that offering combined to deliver a shocking placing aftermath, but the willingness of Japan post Insurance to issue subordinated debt at a low interest rate to raise cash to buy back stock and the CEO's comment that they had capacity to do much more was a good reason to expect the news which has just come out. <h3>What News?  JPI Is On the Road to Emancipation</h3>Various media reports (I got the news first from <a href="https://www.bloomberg.com/news/articles/2020-12-16/japan-post-insurer-plans-2-9-billion-buyback-to-cut-owner-stake" target="_blank" rel="noopener">Bloomberg</a> and JPI had an official <a href="https://pdf.irpocket.com/C7181/j9N9/MJ5Y/o2qZ.pdf" target="_blank" rel="noopener">comment</a> suggesting that the information did not come from them) suggested that Japan Post Insurance would have a board meeting this month to approve raising subordinated debt (to the tune of ¥100bn) and would buy back as much as ¥300bn of shares from its parent Japan Post Holdings, which currently owns 64.8% of shares out, with the goal of getting the JPH ownership level of Japan Post Insurance down below 50%. 50% is the magic level. That's the cause for excitement. From here, it gets a little complicated but the news leak suggests there is a fair bit of fire behind this smoke.

That's it. It has started. The story and long-term look-through reason why it was not a bad idea to buy the last offering from Japan Post Insurance (7181 JP) when Japan Post Holdings (6178 JP) in April 2019 has now come into the clear. Clearly, the METHOD of the buyback in April 2019 combined with the Really Quite Awful And Very Bad Investor Placement by Daiwa in that offering combined to deliver a shocking placing aftermath, but the willingness of Japan post Insurance to issue subordinated debt at a low interest rate to raise cash to buy back stock and the CEO's comment that they had capacity to do much more was a good reason to expect the news which has just come out. What News?  JPI Is On the Road to EmancipationVarious media reports (I got the news first from Bloomberg and JPI had an official comment suggesting that the information did not come from them) suggested that Japan Post Insurance would have a board meeting this month to approve raising subordinated debt (to the tune of ¥100bn) and would buy back as much as ¥300bn of shares from its parent Japan Post Holdings, which currently owns 64.8% of shares out, with the goal of getting the JPH ownership level of Japan Post Insurance down below 50%. 50% is the magic level. That's the cause for excitement. From here, it gets a little complicated but the news leak suggests there is a fair bit of fire behind this smoke.

Huge Japan Post Insurance Buyback Mooted - Decks Cleared. Time To Buy

United States

Aflac, Inc. is a general business holding company. The Company, through its subsidiaries, provides supplemental insurance to individuals in the United States and Japan.  Aflac's products include accident/disability plans, cancer expense plans, short-term disability plans, sickness and hospital indemnity plans, hospital intensive care plans, and fixed-benefit dental plans.

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Aflac Inc (AFL US)

Aflac Incorporated: Key Strategies Driving Their Financial Triumph in Japan and the U.S.! - Major Drivers

Aflac delivered an all-around beat in the previous quarter, with a notable 12.4% year-over-year increase in sales in Japan. The Japanese market's...

Baptista Research

Aflac Incorporated: Strategic Alliances That Are Set to Propel Their Future! - Major Drivers

Aflac managed to exceed analyst expectations in terms of revenue and earnings. The company's diligent efforts and strategic initiatives in the...

Baptista Research

Aflac Incorporated: Initiation of Coverage – Business Structure and Competitive Edge

This is our first report on Aflac Incorporated, a prominent player in the American insurance industry. The year's first quarter proved promising...

Baptista Research

Japan Post Holdings BUYBACK - Recycling Sale Proceeds As Expected; No BIG Catalyst Yet

JPH sold JPY 358bn of shares in JPI, and now is spending 70% of that to buy back its own shares from the govt. That is good, but it should do...

Travis Lundy

Huge Japan Post Insurance Buyback Mooted - Decks Cleared. Time To Buy

The possibility of a big buyback by Japan Post Insurance to get Japan Post Hldgs sub-50% is a Really Good Thing. It means EPS growth, top line...

Travis Lundy

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