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): Promising Main Business, But But New Businesses Squeezed Margins, Upgrade to HOLD

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

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

Short WUBA to Profit from China's Housing Market Corrections

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

<ul class="">
<li>The Beijing municipal government shut down WUBA’s rental channel in Beijing for 5 days, as the the authorities found that WUBA had illegal property information.</li>
<li>The authorities are actively monitoring WUBA due to its monopolistic position.</li>
<li>Comparing with P/E ratios of online market leaders in other niches, we believe the stock price has downside of 18%.</li>
</ul>


The Beijing municipal government shut down WUBA’s rental channel in Beijing for 5 days, as the the authorities found that WUBA had illegal property information.
The authorities are actively monitoring WUBA due to its monopolistic position.
Comparing with P/E ratios of online market leaders in other niches, we believe the stock price has downside of 18%.


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

58.Com Inc Adr

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