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

China Internet Weekly (20Feb2020): More Physical Stores Moving Online, Logistics Recovering

China Internet Weekly (2Mar2020): Photos of Rush Hour in Shanghai, ByteDance Starts Search App

Alibaba (BABA) | COVID-19 and the Great India Opportunity - An On Ground Perspective

China Internet Weekly (10Feb2020): Xiaomi Expanding in Europe, Koolearn Stock Up 37%

Alibaba (BABA): Want Fresh Food? Order Between 0:01~7:00 A.m. Due to Coronavirus

Alibaba (BABA): Freshippo “Borrows” Employees from Restaurants to Fill Online Demand

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Bottom-Up

Alibaba Group Holding  / Equity Bottom-Up

<ul>
<li>We believe many Chinese companies will hide profits for future under the excuse of epidemic.</li>
<li>
<a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group (BABA US)</a>’s exemption of service fee is not a big deal for total revenues.</li>
<li>Both <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a>’s TV and handset businesses will be negatively impacted.</li>
</ul>


We believe many Chinese companies will hide profits for future under the excuse of epidemic.

Alibaba Group (BABA US)’s exemption of service fee is not a big deal for total revenues.
Both Xiaomi Corp (1810 HK)’s TV and handset businesses will be negatively impacted.


China Internet Weekly (17Feb2020): Companies May Hide Profits, BABA Fee Exemption Not a Big Deal