HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

AviChina Industry & Technology / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/avichina-industry-technology-h" target="_blank" data-smartkarma-citation="entities:16315:1" rel="noopener">AviChina Industry &amp; Technology H (2357 HK)</a> offers unique exposure to China's aerospace and defense sector and it will ride on China's ambition to solidify its military strengths. </li>
<li>We think the key drivers are increase in civil and defense demand, commercialisation of C919 aircraft, localisation of helicopters and potential for corporate restructuring.</li>
<li>The stock is undervalued with its holdings in four listed A-shares amounted to Rmb70.6bn, against its own market cap of HK$25bn. Also, earnings multiples are cheap relative to global peers.</li>
</ul>



AviChina Industry &amp; Technology H (2357 HK) offers unique exposure to China's aerospace and defense sector and it will ride on China's ambition to solidify its military strengths. 
We think the key drivers are increase in civil and defense demand, commercialisation of C919 aircraft, localisation of helicopters and potential for corporate restructuring.
The stock is undervalued with its holdings in four listed A-shares amounted to Rmb70.6bn, against its own market cap of HK$25bn. Also, earnings multiples are cheap relative to global peers.


2023 High Conviction: AviChina Industry (2357 HK) - The Sky Is the Limit

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.

Raytheon Technologies  / Equity Bottom-Up

<ul><li>Raytheon Technologies delivered a mixed set of results missing out on Wall Street’s revenue expectations but managed an earnings beat.</li><li>The company had a strong quarter for commercial aerospace, and it continues to view quite strong demand for its products and services.</li><li>We provided the stock of Raytheon Technologies with a ‘Hold’ rating with a revision in the target price.</li></ul>

Raytheon Technologies delivered a mixed set of results missing out on Wall Street’s revenue expectations but managed an earnings beat.The company had a strong quarter for commercial aerospace, and it continues to view quite strong demand for its products and services.We provided the stock of Raytheon Technologies with a ‘Hold’ rating with a revision in the target price.

Raytheon Technologies: Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (10/22)

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>There have been more news flow about several major Korean defense companies that could receive as much as 28 trillion won in new orders from three major European countries.</li>
<li>The Poland government could purchase jets, tanks, and howitzers from major Korean defense companies such as Hyundai Rotem (K2 tanks), KAI (FA50 fighter jets), and Hanwha Defense (K9 howitzers).</li>
<li>There is a good probability that the Korean defense contractors may be able to secure a large percentage of the 28 trillion won in new arms exports contracts.</li>
</ul>


There have been more news flow about several major Korean defense companies that could receive as much as 28 trillion won in new orders from three major European countries.
The Poland government could purchase jets, tanks, and howitzers from major Korean defense companies such as Hyundai Rotem (K2 tanks), KAI (FA50 fighter jets), and Hanwha Defense (K9 howitzers).
There is a good probability that the Korean defense contractors may be able to secure a large percentage of the 28 trillion won in new arms exports contracts.


Korean Defense Companies:  Potential Contracts Worth 28 Trillion Won from Poland, UK, & Norway

Credit

<ul><li>Raytheon Technologies is a major player in the commercial aerospace and defense sector.</li><li>The company started off with 2022 on a mixed note with a slow performance on the revenue front but decent margins.</li><li>The sluggishness on the revenue front, particularly in commercial aerospace has been attributed to the Omicron's effects and rising geopolitical tensions.</li></ul>

Raytheon Technologies is a major player in the commercial aerospace and defense sector.The company started off with 2022 on a mixed note with a slow performance on the revenue front but decent margins.The sluggishness on the revenue front, particularly in commercial aerospace has been attributed to the Omicron's effects and rising geopolitical tensions.

Raytheon Technologies Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report

<ul><li>This is our first report on aerospace and defense major, Raytheon.</li><li>The sluggishness on the revenue front, particularly in commercial aerospace has been attributed to the Omicron's effects and rising geopolitical tensions.</li><li>Given inflation and the numerous unfunded priorities noted by the services, the company anticipates the actual budget to be even higher.</li></ul>

This is our first report on aerospace and defense major, Raytheon.The sluggishness on the revenue front, particularly in commercial aerospace has been attributed to the Omicron's effects and rising geopolitical tensions.Given inflation and the numerous unfunded priorities noted by the services, the company anticipates the actual budget to be even higher.

Raytheon Technologies Corporation: Initiation of Coverage – Business Strategy

United States

Raytheon Technologies Corporation operates as an aircraft manufacturing company. The Company focuses on technology offerings and engineering teams to deliver innovative solutions such as aero structures, avionics, interiors, mechanical systems, mission systems, aircraft engines, power and control systems, radars, software, and other products.

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Raytheon Technologies (RTX US)

2023 High Conviction: AviChina Industry (2357 HK) - The Sky Is the Limit

AviChina is cheap against global peers and key drivers are increase in civil and defense demand, commercialisation of C919 aircraft, localisation...

Osbert Tang, CFA

Raytheon Technologies: Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (10/22)

Raytheon Technologies delivered a mixed set of results missing out on Wall Street’s revenue expectations but managed an earnings beat. The company...

Baptista Research

Korean Defense Companies: Potential Contracts Worth 28 Trillion Won from Poland, UK, & Norway

There have been more news flow about several major Korean defense companies that could receive as much as 28 trillion won in new orders from three...

Douglas Kim

Raytheon Technologies Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report

Raytheon Technologies is a major player in the commercial aerospace and defense sector. The company started off with 2022 on a mixed note with a...

Baptista Research

Raytheon Technologies Corporation: Initiation of Coverage – Business Strategy

This is our first report on aerospace and defense major, Raytheon. The sluggishness on the revenue front, particularly in commercial aerospace has...

Baptista Research

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