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>Sony Group Corporation's earnings for the first quarter of fiscal year 2026 showcased a mixture of record highs and challenges.</li><li>Sales from continuing operations increased by 2% year-on-year to JPY 2,621.6 billion, and operating income rose significantly by 36% to JPY 340 billion.</li><li>Net income saw an increase of 23%, reaching JPY 259 billion, indicating robust financial health.</li></ul>

Sony Group Corporation's earnings for the first quarter of fiscal year 2026 showcased a mixture of record highs and challenges.Sales from continuing operations increased by 2% year-on-year to JPY 2,621.6 billion, and operating income rose significantly by 36% to JPY 340 billion.Net income saw an increase of 23%, reaching JPY 259 billion, indicating robust financial health.

Sony Group Corporation’s Semiconductor Push—Can Image Sensor Penetration Up Its Tech Game?

Founder at Stock Spin-off Investing, Stock Spin-Off Investing

Richard Howe

Founder at Stock Spin-off Investing

Stock Spin-Off Investing

Generate attractive returns by taking advantage of inefficiencies in the stock spin-off market.

Stock Spin-offs

Event-Driven

<ul><li>Sony Group Corporation (SONY) is planning to partially spin off its financial services division, Sony Financial Group Inc. (SFGI), in what would be Japan’s first major spin‑off with a direct listing in over two decades.</li><li>The company will divest 80% of its stake while retaining the remaining 20%, and the spin‑off is scheduled for September 29, 2025.<figure class="editor-figure mceNonEditable"></figure></li><li>This looks interesting to me as I see potential for indiscriminate selling. Sony Financial Service Group contributes ~13% of Company Net Income (¥1,067.4B).</li></ul>

Sony Group Corporation (SONY) is planning to partially spin off its financial services division, Sony Financial Group Inc. (SFGI), in what would be Japan’s first major spin‑off with a direct listing in over two decades.The company will divest 80% of its stake while retaining the remaining 20%, and the spin‑off is scheduled for September 29, 2025.This looks interesting to me as I see potential for indiscriminate selling. Sony Financial Service Group contributes ~13% of Company Net Income (¥1,067.4B).

Equity Derivatives and Volatility Specialist, Clifton Derivatives

John Ley

Equity Derivatives and Volatility Specialist

Clifton Derivatives

Independent derivative and volatility research firm focusing on events/catalysts, earnings, relative value and cross asset volatility strategies.

Equity Derivatives

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899" rel="noopener">Hang Seng Index (HSI INDEX)</a>, <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-index" target="_blank" data-smartkarma-citation="entities:22906" rel="noopener">Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX EQUITY)</a> and <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909" rel="noopener">Nikkei 225 (NKY INDEX)</a> all have elevated implied vols vs their peers and vs historical observations for October.</li>
<li>
<a href="https://www.smartkarma.com/entities/nifty-index" target="_blank" data-smartkarma-citation="entities:23617" rel="noopener">NIFTY Index (NIFTY INDEX)</a> , <a href="https://www.smartkarma.com/entities/s-p-500-index" target="_blank" data-smartkarma-citation="entities:22886" rel="noopener">S&amp;P 500 INDEX (SPX INDEX)</a> and <a href="https://www.smartkarma.com/entities/s-p-asx-200" target="_blank" data-smartkarma-citation="entities:22901" rel="noopener">S&amp;P/ASX 200 (AS51 INDEX)</a>  implied vols are on the low end of what is typically realized in October.</li>
<li>Most markets see price weakness in the 3rd week of the month with realized volatility underperforming over the back half of the month.</li>
</ul>



Hang Seng Index (HSI INDEX), Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX EQUITY) and Nikkei 225 (NKY INDEX) all have elevated implied vols vs their peers and vs historical observations for October.

NIFTY Index (NIFTY INDEX) , S&amp;P 500 INDEX (SPX INDEX) and S&amp;P/ASX 200 (AS51 INDEX)  implied vols are on the low end of what is typically realized in October.
Most markets see price weakness in the 3rd week of the month with realized volatility underperforming over the back half of the month.


EQD | Asia Monthly Vol Roadmap: Elevated IV's in CSI300 and Hang Seng Present Tactical Opportunity

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Index Rebalance

<ul>
<li>A couple of years ago, <a href="https://www.smartkarma.com/entities/sony-corp" target="_blank" data-smartkarma-citation="entities:563:1" rel="noopener">Sony Corp (6758 JP)</a> announced they would spin off <a href="https://www.smartkarma.com/entities/sony-financial-holdings-inc" target="_blank" data-smartkarma-citation="entities:564:1" rel="noopener">Sony Financial Holdings (8729 JP)</a> (called Sony Financial Group Inc). That spinoff is due in Sep-2025.</li>
<li>The extra capital required for a tech/industrial to hold the financial business is significant, but some of the other reasons Sony has offered are just management-speak hogwash.</li>
<li>The problem? It creates a new event in the Nikkei 225 paradigm for which there was no rule. Now the Nikkei has proposed a rule. It isn't perfect.</li>
</ul>


A couple of years ago, Sony Corp (6758 JP) announced they would spin off Sony Financial Holdings (8729 JP) (called Sony Financial Group Inc). That spinoff is due in Sep-2025.
The extra capital required for a tech/industrial to hold the financial business is significant, but some of the other reasons Sony has offered are just management-speak hogwash.
The problem? It creates a new event in the Nikkei 225 paradigm for which there was no rule. Now the Nikkei has proposed a rule. It isn't perfect.


Nikkei 225 Proposal for Dealing With Sony's (6758) Sony Finl Spinoff - A Non-Event but TOPIX Isn't

<ul><li>Sony Group Corporation's recent earnings underscore a strategic pivot towards a more entertainment-centric business model, emphasizing the importance of content creation and technological innovation.</li><li>The company's repositioning towards entertainment is highlighted by its 51% contribution to consolidated sales, showcasing the segment's resilience, especially during economic downturns like the COVID-19 pandemic.</li><li>The focus on expanding IP presence in gaming, music, film, and anime demonstrates a coherent vision aligning with its longterm creative goals.</li></ul>

Sony Group Corporation's recent earnings underscore a strategic pivot towards a more entertainment-centric business model, emphasizing the importance of content creation and technological innovation.The company's repositioning towards entertainment is highlighted by its 51% contribution to consolidated sales, showcasing the segment's resilience, especially during economic downturns like the COVID-19 pandemic.The focus on expanding IP presence in gaming, music, film, and anime demonstrates a coherent vision aligning with its longterm creative goals.

Sony Corporation: Evolution in Game & Network Services to Strengthen Leadership In Gaming Industry!

Japan

Sony Corporation manufactures audio, home video game consoles, communications, key device and information technology products for the consumer and professional markets.  The Company's other businesses include music, pictures, computer entertainment, and online businesses.

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Sony Corp (6758 JP)

Sony Group Corporation’s Semiconductor Push—Can Image Sensor Penetration Up Its Tech Game?

Sony Group Corporation's earnings for the first quarter of fiscal year 2026 showcased a mixture of record highs and challenges. Sales from...

Baptista Research

Weekly Update (LION, MAGN, NLOP, SONY)

Sony Group Corporation (SONY) is planning to partially spin off its financial services division, Sony Financial Group Inc. (SFGI), in what would be...

Richard Howe

EQD | Asia Monthly Vol Roadmap: Elevated IV's in CSI300 and Hang Seng Present Tactical Opportunity

Implied volatility levels across key Asian indices present several tactical opportunities this month for outright or pairs trades...

John Ley

Nikkei 225 Proposal for Dealing With Sony's (6758) Sony Finl Spinoff - A Non-Event but TOPIX Isn't

The Nikkei has amended the Indecx Guidebook for the Nikkei 225 Average after its consultation result regarding the Sony Financial spin-off. It is...

Travis Lundy

Sony Corporation: Evolution in Game & Network Services to Strengthen Leadership In Gaming Industry!

Sony Group Corporation's recent earnings underscore a strategic pivot towards a more entertainment-centric business model, emphasizing the...

Baptista Research

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Sony Group Corporation’s Semiconductor Push—Can Image Sensor Penetration Up Its Tech Game?

Sony Group Corporation's earnings for the first quarter of fiscal year 2026 showcased a mixture of record highs and challenges. Sales from...

Baptista Research

Weekly Update (LION, MAGN, NLOP, SONY)

Sony Group Corporation (SONY) is planning to partially spin off its financial services division, Sony Financial Group Inc. (SFGI), in what would be...

Richard Howe

EQD | Asia Monthly Vol Roadmap: Elevated IV's in CSI300 and Hang Seng Present Tactical Opportunity

​Implied volatility levels across key Asian indices present several tactical opportunities this month for outright or pairs trades...

John Ley

Nikkei 225 Proposal for Dealing With Sony's (6758) Sony Finl Spinoff - A Non-Event but TOPIX Isn't

The Nikkei has amended the Indecx Guidebook for the Nikkei 225 Average after its consultation result regarding the Sony Financial spin-off. It is...

Travis Lundy

Sony Corporation: Evolution in Game & Network Services to Strengthen Leadership In Gaming Industry!

Sony Group Corporation's recent earnings underscore a strategic pivot towards a more entertainment-centric business model, emphasizing the...

Baptista Research

Implied volatility levels across key Asian indices present several tactical opportunities this month for outright or pairs trades...