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

Thoughts on Amazon –What Does Its Valuation Tells Us?

Netflix & Amazon Expand in Korea – Not a Coincidence

Okja: The Fight Between Netflix Vs. CJ CGV

Equity Bottom-Up

<ul>
<li>The ratio of cash to short-term investments (STI) is abnormally low at 6.4% in 2Q18.</li>
<li>The controlling shareholder Ping An provided Autohome (ATHM) 19% of financial products in STI in 2017 according to Form 20-F.</li>
<li>We believe that more of ATHM’s cash are possibly in Ping An.</li>
</ul>


The ratio of cash to short-term investments (STI) is abnormally low at 6.4% in 2Q18.
The controlling shareholder Ping An provided Autohome (ATHM) 19% of financial products in STI in 2017 according to Form 20-F.
We believe that more of ATHM’s cash are possibly in Ping An.


Ping An Securities Group (Holdings) (231 HK)

Autohome (ATHM) - Cash Goes to Controlling Shareholder

Autohome Inc (Adr)

Autohome (ATHM) - Cash Goes to Controlling Shareholder