Overseas Chinese Equities, Aequitas Research

Ming Lu

A veteran with 19-year experience in equity research.

Geographical coverage:
* Companies operating in China, but listed in Hong Kong and the U.S.
* Previously China A-share (listed in mainland China).

Equity sector coverage:
* Chinese App / Internet-based consumption in China, e.g., Alibaba, Tencent, etc.
* Previously covered education, transportation, telecom, power, bank, advertisement, hotel, etc.

Research methods:
* Generally bottom-up.
* Talk to related people on the ground.  Talk to readers and independent writers for analyzing a news portal.  Talk to parents and teachers for analyzing a tutoring school. 
* Visit stores and show photos as evidence in notes.
* Do technical analysis when finding a short-seller attacking an equity.

Languages:
* English
* Mandarin Chinese (Official language of China)
* Shanghainese (Language of Shanghai, the most developed city in China)
* Cantonese (Language of Hong Kong and Canton Province, one of the most developed provinces in China)

Overseas Chinese Equities

58.com (WUBA): Weak Membership Growth Suggests More Volatile Performance, 17% Downside

58.com (WUBA): Won Competition, Upgrade to Hold

58.COM (WUBA): Operating Profits Up 30%, But Membership Stagnant, Still Hold

58.com (WUBA): Top Risk - Clients Cheat Users, 18% Downside

58.com: Market Share Gains and Pricing Power Put 58.com in a Strong Position.

58.com 2Q17 Earnings: Stock Soars ~20% as Results Smash Expectations; Guidance Better Than Expected

Equity Bottom-Up

* The main business of online marketing grew strongly by 40% YoY in 3Q18.
* The expansion to small cities squeezed margins.
* The Company’s P/E is in line with the average of niche internet leaders, Upgrade to HOLD.

* The main business of online marketing grew strongly by 40% YoY in 3Q18.
* The expansion to small cities squeezed margins.
* The Company’s P/E is in line with the average of niche internet leaders, Upgrade to HOLD.

58.com (WUBA): Promising Main Business, But But New Businesses Squeezed Margins, Upgrade to HOLD

58.Com Inc Adr

58.com (WUBA): Promising Main Business, But But New Businesses Squeezed Margins, Upgrade to HOLD