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

Tencent (700 HK) – Reform Official Accounts, Will Make Money

China’s Financial Risks/Deleveraging/Technology Race/Housing Crackdown/Trade War/EU Talks/RRR Cut

Tencent Bullish Macro Platform and Buy Level/Targets

Tencent (700 HK) – Investment Gains Not Sustainable, Reached Our Target, Upgrade to HOLD

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

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

Equity Bottom-Up

Summary<ul class="">
<li>Tencent and Byte Dance launched lawsuits against each other.</li>
<li>In fact Byte Dance is fighting every internet giant.</li>
<li>We believe that new internet entrants are always at a disadvantage, as giant internet companies like Tencent are both important distribution channels and opportunistic imitators with all necessary sources.</li>
<li>Additionally, Chinese media analysis on the conflicts between Byte Dance and Tencent has been erroneous.</li>
</ul>Lawsuits LaunchedThe company Byte Dance 字节跳动is well known for its online…

Summary
Tencent and Byte Dance launched lawsuits against each other.
In fact Byte Dance is fighting every internet giant.
We believe that new internet entrants are always at a disadvantage, as giant internet companies like Tencent are both important distribution channels and opportunistic imitators with all necessary sources.
Additionally, Chinese media analysis on the conflicts between Byte Dance and Tencent has been erroneous.
Lawsuits LaunchedThe company Byte Dance 字节跳动is well known for its online…

Byte Dance Lawsuits Show: Tencent (700 HK) Is Small Companies’ Inevitable Platform and Competitor