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 IPO/Secondary Listing - The Real IPO Only Begins on the 11th Day Post Listing

ECM Weekly (22 Jun 2019) -  Alibaba, Budweiser Brewing Co, Ascentage, CIMC Vehicle, Impro Precision

Alibaba (BABA): Failure of “New Retail”

Alibaba (BABA): Weakest Business Line Transfers Risk to Suppliers and Cuts Headcount, 38% Upside

Alibaba (BABA): Growth Accelerated After New Law Headwind, Cost Control Will Fix Margin, 30% Upside

Alibaba (BABA US): Early Thoughts on the Hong Kong Listing

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

Equity Bottom-Up

Alibaba Group Holding  / Equity Bottom-Up

<ul>
<li>On June 18, BABA sent an internal mail to all employees and announced another step of “organizational upgrading”.</li>
<li>We believe the re-organization is good preparation for ongoing cost cut in minor businesses. We believe the operating margin will stop declining in F2020 (ended March 2020).</li>
<li>We also believe the CEO Daniel Zhang and the CFO Maggie Wu will have the real power of directly operating Alibaba after Jack Ma retires in September 2019. We trust the CEO's ability based on his contributions to Alibaba . </li>
</ul>


On June 18, BABA sent an internal mail to all employees and announced another step of “organizational upgrading”.
We believe the re-organization is good preparation for ongoing cost cut in minor businesses. We believe the operating margin will stop declining in F2020 (ended March 2020).
We also believe the CEO Daniel Zhang and the CFO Maggie Wu will have the real power of directly operating Alibaba after Jack Ma retires in September 2019. We trust the CEO's ability based on his contributions to Alibaba . 


Alibaba (BABA): Thorough Explanation of June Re-Organization