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

IQiyi (IQ): Temporary Headwind in Ad Revenues, But Robust Membership Revenues in 3Q18

IQiyi (IQ): In 4Q18, Baidu’s Growth Engine Lost Control Over Content Cost

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

Baidu (BIDU): To Win Battle with Sogou (SOGO) Over Traffic Hijacking After 4 Years

Baidu (BIDU) – Will Love Affair Rumor Impact Founder's Control?

Baidu (BIDU) – Google Rumor Not a Concern, Healthy 2Q18, and 50%+ Upside

Baidu – IQIYI IPO Surfaces Value of Core Business – Search Is Undervalued

Equity Bottom-Up

<ul class="">
<li>One of iQiyi’s TV series became the most popular on-line TV show during the summer.</li>
<li>We believe the popularity of this show will lead to higher membership revenues in 3Q18.</li>
<li>We believe the popularity will raise advertising revenues in 4Q18 and 2019.</li>
<li>We also believe iQiyi bought the TV series at a low price.</li>
</ul>


One of iQiyi’s TV series became the most popular on-line TV show during the summer.
We believe the popularity of this show will lead to higher membership revenues in 3Q18.
We believe the popularity will raise advertising revenues in 4Q18 and 2019.
We also believe iQiyi bought the TV series at a low price.


Baidu (BIDU): IQiyi (IQ) Caught a Hit TV Series