Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

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

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<li>Ripley Corp operates in Chile and Peru, in retailing, real estate investments in shopping malls as well as banking and other consumer financial services in both countries. Ripley is the second largest issuer of credit cards in Chile and Peru</li>
<li>We estimate that the Ripley finance operations, based on our Sum of The Parts (SOTP) valuation, have a valuation range of USD1.14bn to USD1.43bn, which would equate to a low of 69% and a high of 86% versus Ripley Corp’s market capitalization</li>
<li>Although Ripley Corp appears expensive versus its LatAm peers, we believe that it is an attractive investment versus its Chilean peers especially on consensus PE multiples of 16.2x for 2019E and 15.2x for 2020E</li>
<li>The high net debt to equity ratio of the group is not a major concern, as interest cover is healthy; we like the high return and focused consumer banking businesses in Chile and Peru which, in our opinion, account for most of the group’s market value</li>
</ul>


Ripley Corp operates in Chile and Peru, in retailing, real estate investments in shopping malls as well as banking and other consumer financial services in both countries. Ripley is the second largest issuer of credit cards in Chile and Peru
We estimate that the Ripley finance operations, based on our Sum of The Parts (SOTP) valuation, have a valuation range of USD1.14bn to USD1.43bn, which would equate to a low of 69% and a high of 86% versus Ripley Corp’s market capitalization
Although Ripley Corp appears expensive versus its LatAm peers, we believe that it is an attractive investment versus its Chilean peers especially on consensus PE multiples of 16.2x for 2019E and 15.2x for 2020E
The high net debt to equity ratio of the group is not a major concern, as interest cover is healthy; we like the high return and focused consumer banking businesses in Chile and Peru which, in our opinion, account for most of the group’s market value


Ripley Corp's Banking Business Dominates the Group's Market Valuation

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

MSCI Emerging Markets Index / Technical Analysis

<p>Broadly speaking, RS for MSCI EM is currently exhibiting some mild deterioration vs. MSCI EAFE following four months of clear outperformance. Nonetheless, the MSCI EM index is bottoming and remains attractive from a price perspective.  In today's report we offer a technical appraisal of major EM markets, and offer a host of technically attractivec bottoms-up stock ideas across the EM universe.</p>

Broadly speaking, RS for MSCI EM is currently exhibiting some mild deterioration vs. MSCI EAFE following four months of clear outperformance. Nonetheless, the MSCI EM index is bottoming and remains attractive from a price perspective.  In today's report we offer a technical appraisal of major EM markets, and offer a host of technically attractivec bottoms-up stock ideas across the EM universe.

EM Equity Strategy: Cyclicals Leading, China Surging

Bermuda

Credicorp Ltd. provides a full range of financial services including commercial banking, corporate finance, brokerage services, asset management, trust and insurance. The Company, through its subsidiaries, operates in Peru.

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Credicorp Ltd (BAP US)

Ripley Corp's Banking Business Dominates the Group's Market Valuation

Ripley Corp operates in Chile and Peru, in retailing, real estate investments in shopping malls as well as banking and other consumer financial...

Victor Galliano

EM Equity Strategy: Cyclicals Leading, China Surging

Broadly speaking, RS for MSCI EM is currently exhibiting some mild deterioration vs. MSCI EAFE following four months of clear outperformance....

Vermilion Research

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