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

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

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

Baidu (BIDU): Returning to Hospital Clients Impacted Margin, But Will Bring Growth, 17%~59% Upside

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

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

Baidu (BIDU) – Yes, COO Saved Baidu, But No, His Resignation Not a Concern

CDR Pilot Program Update - Xiaomi First, Baidu Next? BABA and JD Coming Behind

CDR Pilot Program - New Rules & 6️⃣ Funds - It's All Happening

Equity Bottom-Up

<ul class="">
<li>Baidu won the lawsuit for unfair competition against Sogou, but Sogou has not followed the court’s judgment after one month and a half. Therefore, Baidu has applied for enforcement on the judgment.</li>
<li>Baidu is the dominant player among Chinese search engines, while Sogou is the dominant player among Chinese input tools.</li>
<li>When a user inputs Chinese with the Sogou input tool in order to search a phrase on Baidu, the Sogou Chinese input tool always redirects the user to Sogou’s own search engine.</li>
<li>If the enforcement is carried out, we believe it will be obviously positive for Baidu and negative for Sogou.</li>
</ul>


Baidu won the lawsuit for unfair competition against Sogou, but Sogou has not followed the court’s judgment after one month and a half. Therefore, Baidu has applied for enforcement on the judgment.
Baidu is the dominant player among Chinese search engines, while Sogou is the dominant player among Chinese input tools.
When a user inputs Chinese with the Sogou input tool in order to search a phrase on Baidu, the Sogou Chinese input tool always redirects the user to Sogou’s own search engine.
If the enforcement is carried out, we believe it will be obviously positive for Baidu and negative for Sogou.


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