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>ANSYS' third quarter 2023 earnings results presented a mixed bag of information that reflects both the resilience and vulnerabilities within the company's operations.</li><li>While the company reported strong annual contract value (ACV) growth, which is indicative of the robust fundamental demand for its simulation software, it also encountered operational hurdles due to regulatory challenges in the Chinese market.</li><li>On the positive front, ANSYS achieved double-digit growth in ACV and managed to adhere to its guidance before the complications in China arose.</li></ul>

ANSYS' third quarter 2023 earnings results presented a mixed bag of information that reflects both the resilience and vulnerabilities within the company's operations.While the company reported strong annual contract value (ACV) growth, which is indicative of the robust fundamental demand for its simulation software, it also encountered operational hurdles due to regulatory challenges in the Chinese market.On the positive front, ANSYS achieved double-digit growth in ACV and managed to adhere to its guidance before the complications in China arose.

ANSYS Inc.: Expanding Total Addressable Market and Building Growth Opportunities! - 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.

Event-Driven

<ul>
<li>The <a href="https://www.smartkarma.com/entities/altium-ltd" target="_blank" data-smartkarma-citation="entities:18626:1" rel="noopener">Altium Ltd (ALU AU)</a> IE considers <a href="https://www.smartkarma.com/entities/renesas-electronics-corp" target="_blank" data-smartkarma-citation="entities:15933:1" rel="noopener">Renesas Electronics (6723 JP)</a>’ A$68.50 scheme offer fair and reasonable as it is above the midpoint of the A$62.37 to A$70.27 valuation range. </li>
<li>The offer is conditional on remaining regulatory approvals (FIRB, CFIUS) and shareholder approval. </li>
<li>The offer price is attractive and 31% above the all-time high. At the last close and for the 1 August payment, the gross/annualised spread was 1.7%/11.6%.</li>
</ul>


The Altium Ltd (ALU AU) IE considers Renesas Electronics (6723 JP)’ A$68.50 scheme offer fair and reasonable as it is above the midpoint of the A$62.37 to A$70.27 valuation range. 
The offer is conditional on remaining regulatory approvals (FIRB, CFIUS) and shareholder approval. 
The offer price is attractive and 31% above the all-time high. At the last close and for the 1 August payment, the gross/annualised spread was 1.7%/11.6%.


<ul>
<li>
<a href="https://www.smartkarma.com/entities/jsr-corp" target="_blank" data-smartkarma-citation="entities:17620:1" rel="noopener">JSR Corp (4185 JP)</a> pre-conditional tender offer from JIC is JPY4,350 per share. Since the deal announcement, the gross spread has averaged 7.7%.</li>
<li>The wide gross spread reflects the risk in satisfying the pre-condition related to China SAMR approval and potentially shareholder approval due to <a href="https://www.smartkarma.com/entities/shin-etsu-chemical-co-ltd" target="_blank" data-smartkarma-citation="entities:4481:1" rel="noopener">Shin Etsu Chemical (4063 JP)</a>’s re-rating.</li>
<li>SAMR conditional approval would fit with the late February tender start timeline (at the earliest). Despite Shin-Etsu’s re-rating, the offer still looks reasonable.</li>
</ul>



JSR Corp (4185 JP) pre-conditional tender offer from JIC is JPY4,350 per share. Since the deal announcement, the gross spread has averaged 7.7%.
The wide gross spread reflects the risk in satisfying the pre-condition related to China SAMR approval and potentially shareholder approval due to Shin Etsu Chemical (4063 JP)’s re-rating.
SAMR conditional approval would fit with the late February tender start timeline (at the earliest). Despite Shin-Etsu’s re-rating, the offer still looks reasonable.


JSR Corporation (4185 JP): Risk/Reward in Context of Shin-Etsu’s Re-Rating and Looming Tender Start

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Thematic (Sector/Industry)

<ul><li>Per Bloomberg Synopsys, one of the big three Electronic Design Automation (EDA) names, is in advanced talks to acquire Ansys for around US$35bn or ~US$400 per share in a stock-and-cash deal.</li><li>The transaction could be announced as soon as this week.</li><li>Ansys is currently trading at US$348.63 per share (as of market close on 8 Jan), representing ~15% premium if the deal gets closed at US$400 per share. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Per Bloomberg Synopsys, one of the big three Electronic Design Automation (EDA) names, is in advanced talks to acquire Ansys for around US$35bn or ~US$400 per share in a stock-and-cash deal.The transaction could be announced as soon as this week.Ansys is currently trading at US$348.63 per share (as of market close on 8 Jan), representing ~15% premium if the deal gets closed at US$400 per share. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Semiconductor – Synopsys Eyes on Ansys: A Potential Software Giant in the Making

<ul><li>ANSYS Inc. delivered a mixed result in the recent quarter, with revenues below market expectations, but it surpassed the analyst consensus regarding earnings.</li><li>These restrictions included incremental approval processes and export restrictions on selling certain ANSYS products and services to entities in China.</li><li>Despite these challenges, ANSYS delivered a robust quarter marked by double-digit growth in Annual Contract Value (ACV).</li></ul>

ANSYS Inc. delivered a mixed result in the recent quarter, with revenues below market expectations, but it surpassed the analyst consensus regarding earnings.These restrictions included incremental approval processes and export restrictions on selling certain ANSYS products and services to entities in China.Despite these challenges, ANSYS delivered a robust quarter marked by double-digit growth in Annual Contract Value (ACV).

ANSYS Inc.: Impact Of Export Controls On China Operations! - Major Drivers

United States

ANSYS, Inc. develops, markets, and supports software solutions for design analysis and optimization.  The Company's software accelerates product time to market, reduces production costs, improves engineering processes, and optimizes product quality and safety for a variety of manufactured products.  ANSYS's product family features open, flexible architecture for easy integration.

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Ansys Inc (ANSS US)

ANSYS Inc.: Expanding Total Addressable Market and Building Growth Opportunities! - Major Drivers

ANSYS' third quarter 2023 earnings results presented a mixed bag of information that reflects both the resilience and vulnerabilities within the...

Baptista Research

Altium (ALU AU): Scheme Vote on 12 July

The offer price is attractive and 31% above the all-time high. At the last close and for the 1 August payment, the gross/annualised spread was 1.7%...

Arun George

JSR Corporation (4185 JP): Risk/Reward in Context of Shin-Etsu’s Re-Rating and Looming Tender Start

SAMR conditional approval would fit with the late February tender start timeline. Despite Shin-Etsu’s re-rating, the offer still looks reasonable....

Arun George

Semiconductor – Synopsys Eyes on Ansys: A Potential Software Giant in the Making

Per Bloomberg Synopsys, one of the big three Electronic Design Automation (EDA) names, is in advanced talks to acquire Ansys for around US$35bn or...

CMB International

ANSYS Inc.: Impact Of Export Controls On China Operations! - Major Drivers

ANSYS Inc. delivered a mixed result in the recent quarter, with revenues below market expectations, but it surpassed the analyst consensus...

Baptista Research

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