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>Hapag-Lloyd's first-quarter 2025 results indicate a robust start to the year, supported by solid financial performance despite ongoing operational challenges.</li><li>The company recorded a significant year-over-year increase in transport volumes, achieving a 9% growth.</li><li>This outpaces the global market growth rate of approximately 4.2%, demonstrating Hapag-Lloyd's effective market positioning and operational efficiency.</li></ul>

Hapag-Lloyd's first-quarter 2025 results indicate a robust start to the year, supported by solid financial performance despite ongoing operational challenges.The company recorded a significant year-over-year increase in transport volumes, achieving a 9% growth.This outpaces the global market growth rate of approximately 4.2%, demonstrating Hapag-Lloyd's effective market positioning and operational efficiency.

Hapag-Lloyd: Initiation of Coverage- Can a $5.9 Billion War Chest Shield It From Global Turmoil?

HK/China Equity Long-Short

Osbert Tang, CFA

<ul>
<li>The 1H25 net profit of US$630m (+79.7% YoY) for <a href="https://www.smartkarma.com/entities/sitc-international-holdings" target="_blank" data-smartkarma-citation="entities:15301:1" rel="noopener">SITC International (1308 HK)</a> is impressive. It maintains a generous 70% payout ratio, yielding 4.8% for the interim.</li>
<li>Its outlook for 2H25 stays positive despite the recent pull-back in spot rates. Overall demand-supply dynamics continue to be favourable in the short and medium term.</li>
<li>With interim earnings already accounting for 58% of full-year consensus, there is room for an upgrade. At 3.3x P/B, it is not expensive given 30-40% ROEs. </li>
</ul>


The 1H25 net profit of US$630m (+79.7% YoY) for SITC International (1308 HK) is impressive. It maintains a generous 70% payout ratio, yielding 4.8% for the interim.
Its outlook for 2H25 stays positive despite the recent pull-back in spot rates. Overall demand-supply dynamics continue to be favourable in the short and medium term.
With interim earnings already accounting for 58% of full-year consensus, there is room for an upgrade. At 3.3x P/B, it is not expensive given 30-40% ROEs. 


SITC International (1308 HK): A Charming 1H25

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

<ul>
<li>Taiwan's two deep-sea container carriers reported a Y/Y decline in combined revenue in April</li>
<li>In USD terms, the two carriers' combined revenues are down -48% vs 2024 peak levels</li>
<li>Sector YTD &amp; Y/Y share performance do <em>not</em> reflect worsening fundamentals; stay SHORT</li>
</ul>


Taiwan's two deep-sea container carriers reported a Y/Y decline in combined revenue in April
In USD terms, the two carriers' combined revenues are down -48% vs 2024 peak levels
Sector YTD &amp; Y/Y share performance do not reflect worsening fundamentals; stay SHORT


Taiwan's Deep-Sea Carriers Saw Revenue Decline Y/Y in April, First Time Since Dec-2023 | Stay SHORT!

<ul>
<li>Spot container rates have surged, owing to conflict near Red Sea / Suez Canal</li>
<li>On top of higher spot rates, imposition of new fees also boosting carrier revenue</li>
<li>Evergreen's average monthly US$ revenue <em>increased</em> from Q123 to Q423</li>
</ul>


Spot container rates have surged, owing to conflict near Red Sea / Suez Canal
On top of higher spot rates, imposition of new fees also boosting carrier revenue
Evergreen's average monthly US$ revenue increased from Q123 to Q423


Spot Container Rates Surge | New Fees Also Boosting Carrier Revenue | Increases Could Lift '24 Rates

<ul>
<li>Our measure of container shipping price momentum remained weak in October</li>
<li>Poor Q3 results and downbeat Q4/FY guidance from Maersk, Zim; and Suez re-opening?</li>
<li>Conditions are poor and will likely remain that way for a while; AVOID the sector</li>
</ul>


Our measure of container shipping price momentum remained weak in October
Poor Q3 results and downbeat Q4/FY guidance from Maersk, Zim; and Suez re-opening?
Conditions are poor and will likely remain that way for a while; AVOID the sector


Monthly Container Shipping Tracker: Poor Q3 Results, Weak Guidance, A Re-Opening of Suez? | AVOID

Germany

Hapag-Lloyd AG operates as a container shipping line company. The Company offers transportation of goods by sea, road, rail, and inland waterway vessels. Hapag-Lloyd serves customers worldwide.

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Hapag-Lloyd (HLAG GY)

Hapag-Lloyd: Initiation of Coverage- Can a $5.9 Billion War Chest Shield It From Global Turmoil?

Hapag-Lloyd's first-quarter 2025 results indicate a robust start to the year, supported by solid financial performance despite ongoing operational...

Baptista Research

SITC International (1308 HK): A Charming 1H25

SITC Intl reports impressive 1H25 net profit of US$630m (+79.7% YoY) with positive outlook for 2H25 despite spot rate pull-back. Room for earnings...

Osbert Tang, CFA

Taiwan's Deep-Sea Carriers Saw Revenue Decline Y/Y in April, First Time Since Dec-2023 | Stay SHORT!

April revenue figures from Evergreen and Yang Ming suggest a sharp deterioration in fundamentals, which has not been reflected in YTD or Y/Y share...

Tracking Traffic

Spot Container Rates Surge | New Fees Also Boosting Carrier Revenue | Increases Could Lift '24 Rates

Spot container rates have surged, and carriers are also benefitting from newly-imposed ancillary charges. It's possible the ongoing conflict in the...

Tracking Traffic

Monthly Container Shipping Tracker: Poor Q3 Results, Weak Guidance, A Re-Opening of Suez? | AVOID

Weak pricing, declining earnings and cash flow, and the potential re-opening of the Suez Canal to ship traffic are all reasons to AVOID container...

Tracking Traffic

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Hapag-Lloyd: Initiation of Coverage- Can a $5.9 Billion War Chest Shield It From Global Turmoil?

Hapag-Lloyd's first-quarter 2025 results indicate a robust start to the year, supported by solid financial performance despite ongoing operational...

Baptista Research

SITC International (1308 HK): A Charming 1H25

​SITC Intl reports impressive 1H25 net profit of US$630m (+79.7% YoY) with positive outlook for 2H25 despite spot rate pull-back. Room for earnings...

Osbert Tang, CFA

Taiwan's Deep-Sea Carriers Saw Revenue Decline Y/Y in April, First Time Since Dec-2023 | Stay SHORT!

April revenue figures from Evergreen and Yang Ming suggest a sharp deterioration in fundamentals, which has not been reflected in YTD or Y/Y share...

Tracking Traffic

Spot Container Rates Surge | New Fees Also Boosting Carrier Revenue | Increases Could Lift '24 Rates

Spot container rates have surged, and carriers are also benefitting from newly-imposed ancillary charges. It's possible the ongoing conflict in the...

Tracking Traffic

Monthly Container Shipping Tracker: Poor Q3 Results, Weak Guidance, A Re-Opening of Suez? | AVOID

Weak pricing, declining earnings and cash flow, and the potential re-opening of the Suez Canal to ship traffic are all reasons to AVOID container...

Tracking Traffic

SITC Intl reports impressive 1H25 net profit of US$630m (+79.7% YoY) with positive outlook for 2H25 despite spot rate pull-back. Room for earnings...