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

Autohome (ATHM): Promising Auto Loan, Waiting for Buying Opportunity

Autohome (ATHM): Surged After We Upgraded to Hold, Now Overvalued

Autohome (ATHM): Positive - Competitors Became Clients, Negative - Inflated Leads Revenues, Hold

Autohome (ATHM): Lower Margin in 3Q18, But Fully Impacted Since Our Previous Risk Note

Autohome (ATHM) - Cash Goes to Controlling Shareholder

Autohome Inc. (NYSE: ATHM) C3Q18 Preview: Limited Impact This Quarter but More Are Coming

Equity Bottom-Up

<ul class="">
<li>China vehicle sales volume declined in 2018, which was the first time since 1990.</li>
<li>Car dealers are negotiating commission rate with Autohome.</li>
<li>We believe Autohome has more bargaining power than dealers, but will compromise to some extent.</li>
<li>Our previous financial assumptions had already integrate the potential weakness in automobile industry.</li>
<li>The stock price has been fully reflected the impact of the negotiation.</li>
</ul>


China vehicle sales volume declined in 2018, which was the first time since 1990.
Car dealers are negotiating commission rate with Autohome.
We believe Autohome has more bargaining power than dealers, but will compromise to some extent.
Our previous financial assumptions had already integrate the potential weakness in automobile industry.
The stock price has been fully reflected the impact of the negotiation.


Autohome (ATHM): Commission Conflict with Dealers, as Auto Industry Suffers First Decline Since 1990

Autohome Inc (Adr)

Autohome (ATHM): Commission Conflict with Dealers, as Auto Industry Suffers First Decline Since 1990