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

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

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

Fat Cash Inflows Yet Traded at 2/3 of Historical P/E Average

BIDU – Break Down Q1 into Search Engine and IQiyi, Upside At Least 35%

Equity Bottom-Up

Summary<ul class="">
<li>The resignation of Qi Lu 陆奇, the COO, negatively impacted the stock price.</li>
<li>Qi Lu saved Baidu from a scandal – Both financial performance and stock price have recovered significantly.</li>
<li>We believe Baidu will continue Qi Lu’s management style, thus, the resignation will not negatively impact Baidu's performance.</li>
</ul>Stock Price PlungedOn May 18, Baidu announced that its COO, Qi Lu 陆奇, resigned, but will continue staying at the board as the vice chairman.  In the following two trading days (May 18…

Summary
The resignation of Qi Lu 陆奇, the COO, negatively impacted the stock price.
Qi Lu saved Baidu from a scandal – Both financial performance and stock price have recovered significantly.
We believe Baidu will continue Qi Lu’s management style, thus, the resignation will not negatively impact Baidu's performance.
Stock Price PlungedOn May 18, Baidu announced that its COO, Qi Lu 陆奇, resigned, but will continue staying at the board as the vice chairman.  In the following two trading days (May 18…

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