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>Kylian Mbappé’s decision to leave Nike after roughly two decades and become the face of On Holding’s push into football creates the kind of headline that reaches far beyond Wall Street.</li><li>One of the world’s most recognizable athletes has walked away from the Swoosh just as Nike is trying to rebuild momentum across product innovation, lifestyle footwear and consumer culture.</li><li>The symbolism is difficult to ignore: a younger challenger has recruited a global superstar while Nike is openly acknowledging weakness in Sportswear and Jordan Streetwear.</li></ul>

Kylian Mbappé’s decision to leave Nike after roughly two decades and become the face of On Holding’s push into football creates the kind of headline that reaches far beyond Wall Street.One of the world’s most recognizable athletes has walked away from the Swoosh just as Nike is trying to rebuild momentum across product innovation, lifestyle footwear and consumer culture.The symbolism is difficult to ignore: a younger challenger has recruited a global superstar while Nike is openly acknowledging weakness in Sportswear and Jordan Streetwear.

Nike After Mbappé: Is Its Cultural Dominance Starting To Crack?

<ul><li>Nike is changing how it reaches online shoppers in mainland China, and the move carries more weight than a routine distribution update.</li><li>The company will stop selling through most partner-run digital storefronts and redirect customers toward its own website, app, and official shops on Tmall, JD.com, and Douyin.</li><li>The decision comes at a difficult moment.</li></ul>

Nike is changing how it reaches online shoppers in mainland China, and the move carries more weight than a routine distribution update.The company will stop selling through most partner-run digital storefronts and redirect customers toward its own website, app, and official shops on Tmall, JD.com, and Douyin.The decision comes at a difficult moment.

Nike Just Rewired China—But The Bigger Risk Is What Comes Next!

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>Hong Kong market quietly broke its downward trend channel last week, however the HSI met strong resistance at 18200 (100 Week Moving Average).</li>
<li>
<a href="https://www.smartkarma.com/entities/picc-property-casualty-h" target="_blank" data-smartkarma-citation="entities:350:1" rel="noopener">PICC Property &amp; Casualty H (2328 HK)</a> and <a href="https://www.smartkarma.com/entities/china-petroleum-chemical-h" target="_blank" data-smartkarma-citation="entities:369:1" rel="noopener">China Petroleum &amp; Chemical (386 HK)</a> broke to new highs relative to MSCI indices.  Sinopec may benefit from stronger RMB in 2H24.
</li>
<li><a href="https://www.smartkarma.com/entities/shenzhou-intl-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:10415:1" rel="noopener">Shenzhou Intl Group Holdings (2313 HK)</a> had a short-term turnaround from its downtrend.  The company reported growth in sales and better margins in 2Q24.</li>
</ul>


Hong Kong market quietly broke its downward trend channel last week, however the HSI met strong resistance at 18200 (100 Week Moving Average).

PICC Property &amp; Casualty H (2328 HK) and China Petroleum &amp; Chemical (386 HK) broke to new highs relative to MSCI indices.  Sinopec may benefit from stronger RMB in 2H24.

Shenzhou Intl Group Holdings (2313 HK) had a short-term turnaround from its downtrend.  The company reported growth in sales and better margins in 2Q24.


Technically Speaking, Breakouts and Breakdowns: HONG KONG (SEPTEMBER 3)

Analyst

Steve

Shenzhou International / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nike-inc-cl-b" target="_blank" data-smartkarma-citation="entities:6658:1" rel="noopener">Nike (NKE US)</a> reported better than expected 1Q24 results this morning, with the stock up 8% in after market trading. </li>
<li>Nike's inventories declined by 10% yoy during the quarter, which bodes well for <a href="https://www.smartkarma.com/entities/shenzhou-intl-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:10415:1" rel="noopener">Shenzhou Intl Group Holdings (2313 HK)</a>, as sales to Nike made up 30% of Shenzhou's sales. </li>
<li>Shenzhou is trading at 15x 2024E PE, compared to an average of 21x forward PE over the last decade. </li>
</ul>



Nike (NKE US) reported better than expected 1Q24 results this morning, with the stock up 8% in after market trading. 
Nike's inventories declined by 10% yoy during the quarter, which bodes well for Shenzhou Intl Group Holdings (2313 HK), as sales to Nike made up 30% of Shenzhou's sales. 
Shenzhou is trading at 15x 2024E PE, compared to an average of 21x forward PE over the last decade. 


Shenzhou Intl (2313 HK):  Nike's Inventories Declined By 10% Yoy in 1Q24

<ul><li>Nike Inc. reports fiscal Q4 earnings after Tuesday’s close, and the setup is loaded with tension.</li><li>The stock is near a 52-week low around $40.85, down roughly 36% year-to-date and more than 50% from its 2021 highs.</li><li>At the same time, Nike is showing real strength in parts of the World Cup merchandise race, with U.S. sell-out rates far ahead of Adidas in the recent data shared.</li></ul>

Nike Inc. reports fiscal Q4 earnings after Tuesday’s close, and the setup is loaded with tension.The stock is near a 52-week low around $40.85, down roughly 36% year-to-date and more than 50% from its 2021 highs.At the same time, Nike is showing real strength in parts of the World Cup merchandise race, with U.S. sell-out rates far ahead of Adidas in the recent data shared.

Nike’s Biggest Test Is Not Adidas—It Is The Turnaround!

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)

Nike After Mbappé: Is Its Cultural Dominance Starting To Crack?

Kylian Mbappé’s decision to leave Nike after roughly two decades and become the face of On Holding’s push into football creates the kind of...

Baptista Research

Nike Just Rewired China—But The Bigger Risk Is What Comes Next!

Nike is changing how it reaches online shoppers in mainland China, and the move carries more weight than a routine distribution update. The...

Baptista Research

Technically Speaking, Breakouts and Breakdowns: HONG KONG (SEPTEMBER 3)

Hong Kong market broke its downtrend however it met strong resistance just above 18k. PICC and Sinopec broke to new highs relative to MSCI...

David Mudd

Shenzhou Intl (2313 HK): Nike's Inventories Declined By 10% Yoy in 1Q24

Note the strong share price momentum. Shenzhou (2313 HK) remains the best proxy for gaining exposure to the global sportswear sector.

Steve

Nike’s Biggest Test Is Not Adidas—It Is The Turnaround!

Nike Inc. reports fiscal Q4 earnings after Tuesday’s close, and the setup is loaded with tension. The stock is near a 52-week low around $40.85,...

Baptista Research

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