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 (BABA US):  Look at One Chart that Signals More Profit Is On the Way

BABA Bull Triangle Breakout to Our Reduce Target Zone

China Internet Weekly (7Sep2020): BABA Re-Opened Freshippo Stores, India Banned Tencent’s Top Game

Alibaba (BABA): The Offline Subsidiary Saved the Whole Online Company in FY4Q20

China Internet Weekly (17Aug2020): Top Broadcaster Said Taobao Lied, Probe and Rumor on IQ

Alibaba (BABA): Expect Strong 1Q21, but Reached Our Price Target

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

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.

Equity Bottom-Up

Alibaba Group Holding  / Equity Bottom-Up

<ul>
<li>In 1Q21 (ended June 2020), the growth rate of online businesses recovered.</li>
<li>Freshippo is opening new stores.</li>
<li>The losses in minor businesses were well controlled.</li>
<li>We believe that unstable “interest and investment income” should not be counted on when calculating earnings per share.</li>
<li>We believe the stock price has a downside of 8.8% for September 2021.</li>
</ul>


In 1Q21 (ended June 2020), the growth rate of online businesses recovered.
Freshippo is opening new stores.
The losses in minor businesses were well controlled.
We believe that unstable “interest and investment income” should not be counted on when calculating earnings per share.
We believe the stock price has a downside of 8.8% for September 2021.


Alibaba (BABA): Online Businesses Catching Up with Physical Stores in 1Q21, But Fairly Valued