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

Alibaba Pivot Support Breach with 150 and 135 Targets

Alibaba (BABA): Jack Ma’s Retirement Plan - Wants to or Has To?

Entertainment Plus – 60% Market Share, Margin Not a Concern

A Site Visit: Alibaba (BABA) Successfully Integrates “New Retail” into RT-Mart of Sun Art (6808 HK)

Alibaba (BABA): Logistics Fails as Part of Aggressive Diversification

Alibaba (BABA) – Kicking Competitors Out of Cloud Computing with a Stable Negative Margin

A Visit to Super Species - Investee of Tencent and Alibaba's Main Competitor In "New Retail"

Equity Bottom-Up

Alibaba Group Holding  / Equity Bottom-Up

<ul class="">
<li>BABA told its sales team in the US to focus only on those international companies that have business demand in China.</li>
<li>Cloud computing's revenue growth plunged to 7% qoq in 1Q19 versus 24% qoq in 4Q18</li>
<li>Cloud computing's operating margin plunged to -44% in 1Q19 versus -24% in 4Q19.</li>
<li>We believe BABA bears losses in many minor businesses merely aiming to raise revenue growth.</li>
</ul>


BABA told its sales team in the US to focus only on those international companies that have business demand in China.
Cloud computing's revenue growth plunged to 7% qoq in 1Q19 versus 24% qoq in 4Q18
Cloud computing's operating margin plunged to -44% in 1Q19 versus -24% in 4Q19.
We believe BABA bears losses in many minor businesses merely aiming to raise revenue growth.


Alibaba (BABA) – Cuts Cloud Computing Sales in US