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

AAPL’s Detrimental IPhone Discounts; China Wholesaler Interview

Baidu (BIDU): The Change Amounts to Business Suicide, Disappointing Existing Users and Clients

Baidu (BIDU): Stagnant in 4Q18, Wrong Change Feeds a 24% User Increase to Google

Apple Pain Trade Continues with Key Levels in Focus

IPhone XR Cuts; India Production for the US Shipments

Apple Trend Fractures but Nearing Tactical Buy Support with a Bumpy Road Ahead

Equity Bottom-Up

<ul class="">
<li>Tim Cook passed the buck to the weak sales in China. However, we believe China’s retailing is running well based on our visits to shopping malls with Apple stores.</li>
<li>Luxury goods sold better in China than all other major markets in the world in 2018.</li>
<li>We believe that the price reduction in Mainland China is just taking market share from Apple Stores in Hong Kong, but not from competitors.</li>
<li>We also believe that the app review process is the fatal shortcoming for AAPL.</li>
</ul>


Tim Cook passed the buck to the weak sales in China. However, we believe China’s retailing is running well based on our visits to shopping malls with Apple stores.
Luxury goods sold better in China than all other major markets in the world in 2018.
We believe that the price reduction in Mainland China is just taking market share from Apple Stores in Hong Kong, but not from competitors.
We also believe that the app review process is the fatal shortcoming for AAPL.


Apple (AAPL): Reduces Prices in Mainland China - Right Action, But Not Enough