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 Capital Markets

<ul><li>Twilio Inc. is a cloud software as a service (SaaS) provider that has seen one of the most remarkable growth stories since its IPO from way back in 2016.</li><li>Twilio delivered another strong quarterly result and has been benefitting heavily from the strong macro for cloud-based communication platform providers.</li><li>While its revenue growth story has been like a dream, Twilio’s string of losses has certainly been a point of concern for shareholders.</li></ul>

Twilio Inc. is a cloud software as a service (SaaS) provider that has seen one of the most remarkable growth stories since its IPO from way back in 2016.Twilio delivered another strong quarterly result and has been benefitting heavily from the strong macro for cloud-based communication platform providers.While its revenue growth story has been like a dream, Twilio’s string of losses has certainly been a point of concern for shareholders.

Alpha-Centric ESG Research

Kyle Rudden

<p>If you have never heard of the Long-Term Stock Exchange (LTSE), that is understandable. It is new, and still quite small; in fact, it is the second smallest in the world (for reference LTSE is larger than the Armenia Securities Exchange and considerably smaller than the Bermuda Stock Exchange).</p><p>But this is about strategy, not size.</p><p>As the world's first and one-of-a-kind "ESG stock exchange," LTSE's evolution is worth watching. One big milestone came last week when Asana (ASAN US) and <a href="https://www.smartkarma.com/entities/twilio-inc" target="_blank" data-smartkarma-citation="entities:26473:1" rel="noopener">Twilio (TWLO US)</a> began trading; LTSE's first two listings, and solid "anchors" that should give other issuers confidence in LTSE.</p><p>This Insight provides an overview of LTSE – its ESG business model, history, funding, expertise, and outlook including potential future listings. Not just from the perspective of LTSE, but also in terms of the broader implications for sustainable/ESG investing and capital markets.</p>

If you have never heard of the Long-Term Stock Exchange (LTSE), that is understandable. It is new, and still quite small; in fact, it is the second smallest in the world (for reference LTSE is larger than the Armenia Securities Exchange and considerably smaller than the Bermuda Stock Exchange).But this is about strategy, not size.As the world's first and one-of-a-kind "ESG stock exchange," LTSE's evolution is worth watching. One big milestone came last week when Asana (ASAN US) and Twilio (TWLO US) began trading; LTSE's first two listings, and solid "anchors" that should give other issuers confidence in LTSE.This Insight provides an overview of LTSE – its ESG business model, history, funding, expertise, and outlook including potential future listings. Not just from the perspective of LTSE, but also in terms of the broader implications for sustainable/ESG investing and capital markets.

Asana and Twilio Are First Listings for ESG-Focused Long-Term Stock Exchange (LTSE)

Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<p><a href="https://www.smartkarma.com/entities/tuya-inc" target="_blank" data-smartkarma-citation="entities:32158:1" rel="noopener">Tuya Inc (TUYA US)</a>  offers a purpose-built IoT Cloud platform with a full suite of offerings that include Platform-as-a-Service (PaaS) and Software-as-a-Service (Saas) to businesses and developers. The company started trading on the NYSE on 18<sup>th</sup> March and the company set the final IPO pricing at US$21 per ADS, higher than the company’s IPO price range of US$17-20 per ADS. The company issued 43.59m ADS (each ADS represents one ordinary share of the company) at the IPO and raised approx. US$915m.</p><p>Tuya’s IPO in the US marks the second biggest US IPO in 2021 by a Chinese company after RLX Technology raised over US$1.5bn at its US IPO earlier this year.</p><p>Tuya’s shares opened strong on its first day of trading, hitting an intra-day high ofUS$26.30 per ADS, about 25% higher than the final IPO price of US$21 per ADS. Tuya’s shares closed at US$25 per ADS at the end of its first day of trading, about 20% higher than the company’s final IPO price, giving the company a market capitalisation of approx. US$14bn.</p><p>Tuya’s shares closed at US$20.38 per share at the end of yesterday’s trading (30th March) and the company plans to use the net proceeds from the IPO on R&amp;D, investing on technology infrastructure, marketing and branding and for other general corporate purposes. The company’s IPO was backed by a strong line-up of cornerstone investors including Tencent, Hillhouse Capital, Gaoling Fund, Tiger Global Management, etc.</p>

Tuya Inc (TUYA US)  offers a purpose-built IoT Cloud platform with a full suite of offerings that include Platform-as-a-Service (PaaS) and Software-as-a-Service (Saas) to businesses and developers. The company started trading on the NYSE on 18th March and the company set the final IPO pricing at US$21 per ADS, higher than the company’s IPO price range of US$17-20 per ADS. The company issued 43.59m ADS (each ADS represents one ordinary share of the company) at the IPO and raised approx. US$915m.Tuya’s IPO in the US marks the second biggest US IPO in 2021 by a Chinese company after RLX Technology raised over US$1.5bn at its US IPO earlier this year.Tuya’s shares opened strong on its first day of trading, hitting an intra-day high ofUS$26.30 per ADS, about 25% higher than the final IPO price of US$21 per ADS. Tuya’s shares closed at US$25 per ADS at the end of its first day of trading, about 20% higher than the company’s final IPO price, giving the company a market capitalisation of approx. US$14bn.Tuya’s shares closed at US$20.38 per share at the end of yesterday’s trading (30th March) and the company plans to use the net proceeds from the IPO on R&amp;D, investing on technology infrastructure, marketing and branding and for other general corporate purposes. The company’s IPO was backed by a strong line-up of cornerstone investors including Tencent, Hillhouse Capital, Gaoling Fund, Tiger Global Management, etc.

Tuya IPO Trading Update: Recent Drop in Stock Price Offers a Good Entry Point

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<div><p><a href="https://www.smartkarma.com/entities/tuya-inc" target="_blank" data-smartkarma-citation="entities:32158:1" rel="noopener">Tuya Inc (TUYA US)</a> provides a backend service for IoT (internet of things) device makers. Tuya offers its customers a Platform-as-a-Service (PaaS) for IoT devices that handles the connectivity, device software and application development.</p></div><div><p>Tuya has priced its IPO at $21.00 per ADS to raise gross proceeds of $915 million, above the previous IPO price range of $17-20 per ADS, according to Bloomberg. At the final IPO price of $21 per share, Tuya will have a market cap of $11.8 billion. The IPO got off to a strong start due to indications of interest for $500 million worth of ADSs in the offering from existing investors (<a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a> and Hillhouse Capital) and new investors (Canada Pension Plan Investment Board, Dragoneer Investment Group, GIC and Tiger Global Management).</p></div><div><p>In <a href="https://www.smartkarma.com/insights/tuya-ipo-initiation-connected-future" target="_blank" data-smartkarma-citation="insights:48695" rel="noopener">Tuya IPO Initiation: Connected Future</a>, we opined that Tuya’s PaaS solutions are well-positioned to benefit from the rising need for third-party IoT PaaS providers who can provide the required tools. We concluded that Tuya’s fundamentals are attractive. In <a href="https://www.smartkarma.com/insights/tuya-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:49137" rel="noopener">Tuya IPO: Valuation Insights</a> we noted that the IPO price range is reasonable but full at the high-end. </p></div><div><div><div class="content-highlight"><p>Updating for the final IPO net raise, our base-case DCF derived price target of $20.65 per ADS. As DCF-based target prices are subject to a wide range of variability, we present a sensitivity table to help investors gauge where target prices could head. Our DCF sensitivity analysis points to a meaningful upside based on securing a modest share of the addressable market. </p></div></div></div>

Tuya Inc (TUYA US) provides a backend service for IoT (internet of things) device makers. Tuya offers its customers a Platform-as-a-Service (PaaS) for IoT devices that handles the connectivity, device software and application development.Tuya has priced its IPO at $21.00 per ADS to raise gross proceeds of $915 million, above the previous IPO price range of $17-20 per ADS, according to Bloomberg. At the final IPO price of $21 per share, Tuya will have a market cap of $11.8 billion. The IPO got off to a strong start due to indications of interest for $500 million worth of ADSs in the offering from existing investors (Tencent Holdings (700 HK) and Hillhouse Capital) and new investors (Canada Pension Plan Investment Board, Dragoneer Investment Group, GIC and Tiger Global Management).In Tuya IPO Initiation: Connected Future, we opined that Tuya’s PaaS solutions are well-positioned to benefit from the rising need for third-party IoT PaaS providers who can provide the required tools. We concluded that Tuya’s fundamentals are attractive. In Tuya IPO: Valuation Insights we noted that the IPO price range is reasonable but full at the high-end. Updating for the final IPO net raise, our base-case DCF derived price target of $20.65 per ADS. As DCF-based target prices are subject to a wide range of variability, we present a sensitivity table to help investors gauge where target prices could head. Our DCF sensitivity analysis points to a meaningful upside based on securing a modest share of the addressable market. 

APAC IPOs & Placements

Zhen Zhou, Toh

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

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<p><a href="https://www.smartkarma.com/entities/tuya-inc" target="_blank" data-smartkarma-citation="entities:32158:1" rel="noopener">Tuya Inc (TUYA US)</a> raised about US$915m in its US IPO, priced at US$21 per ADS, above the top end of its initial price range.</p>
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<p>Tuya is a Platform as a Service (PaaS) and Software as a Service (SaaS) provider to businesses and developers with a focus on IoT. The company’s IoT PaaS enables businesses and developers to easily develop, launch, manage, and monetize software-enabled devices and services while its Industry SaaS helps businesses deploy, connect, and manage a large number and different types of smart devices. </p>
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<p>In this note, we will look at updated valuation and share our final thoughts on the IPO.</p>
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<p>We have previously covered the company in:</p>
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<ul style="list-style-type: disc;">
<li>
<a href="https://www.smartkarma.com/insights/tuya-pre-ipo-ride-the-iot-wave-via-tuya-s-platform" target="_blank" data-smartkarma-citation="insights:48740" rel="noopener">Tuya (涂鸦智能) Pre-IPO - Ride the IoT Wave Via Tuya’s Platform</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/tuya-pre-ipo-tuya-s-platform-usage-review" target="_blank" data-smartkarma-citation="insights:48822" rel="noopener">Tuya (涂鸦智能) Pre-IPO - Tuya's Platform Usage Review</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/tuya-pre-ipo-peer-comparison-forecast-and-valuation" target="_blank" data-smartkarma-citation="insights:48924" rel="noopener">Tuya (涂鸦智能) Pre-IPO - Peer Comparison, Forecast, and Valuation</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/tuya-ipo-pushing-for-a-pricey-connection" target="_blank" data-smartkarma-citation="insights:49185" rel="noopener">Tuya (涂鸦智能) IPO -  Pushing for a Pricey Connection</a> </li>
</ul>
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Tuya Inc (TUYA US) raised about US$915m in its US IPO, priced at US$21 per ADS, above the top end of its initial price range.


Tuya is a Platform as a Service (PaaS) and Software as a Service (SaaS) provider to businesses and developers with a focus on IoT. The company’s IoT PaaS enables businesses and developers to easily develop, launch, manage, and monetize software-enabled devices and services while its Industry SaaS helps businesses deploy, connect, and manage a large number and different types of smart devices. 


In this note, we will look at updated valuation and share our final thoughts on the IPO.


We have previously covered the company in:




Tuya (涂鸦智能) Pre-IPO - Ride the IoT Wave Via Tuya’s Platform 

Tuya (涂鸦智能) Pre-IPO - Tuya's Platform Usage Review 

Tuya (涂鸦智能) Pre-IPO - Peer Comparison, Forecast, and Valuation 

Tuya (涂鸦智能) IPO -  Pushing for a Pricey Connection 



Tuya (涂鸦智能) IPO Trading - Strong Momentum but Watch Out for the Post Debut Fizzle

United States

Twilio Inc. develops and publishes Internet infrastructure solutions. The Company offers cloud computing platform that allow web developers to integrate phone calls, Internet protocol voice communications, and text messages into web, mobile, and phone applications. Twilio serves customers worldwide.

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Twilio (TWLO US)

Twilio Inc. - Investment Thesis

Twilio Inc. is a cloud software as a service (SaaS) provider that has seen one of the most remarkable growth stories since its IPO from way back...

Baptista Research

Asana and Twilio Are First Listings for ESG-Focused Long-Term Stock Exchange (LTSE)

Long-Term Stock Exchange just landed its first two listings, Asana and Twilio. It's a major milestone for this new ESG-focused exchange.

Kyle Rudden

Tuya IPO Trading Update: Recent Drop in Stock Price Offers a Good Entry Point

Though Tuya’s IPO had a strong debut on the first two days of trading, it was short-lived and the current drop in the company’s trading multiples...

Shifara Samsudeen, FCMA, CGMA

Tuya IPO: Trading Debut

Tuya has priced its IPO at $21 per ADS above the marketed range of $17-20 per ADS. Our sensitivity analysis points to a meaningful upside based on...

Arun George

Tuya (涂鸦智能) IPO Trading - Strong Momentum but Watch Out for the Post Debut Fizzle

Tuya Inc (TUYA US) raised about US$915m in its US IPO, priced at US$21 per ADS, above the top end of its initial price range.

Zhen Zhou, Toh

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