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 Tobacco Intl (HK) IPO: Proxy For the Chinese Cigarette Consumption

China Tobacco Intl (HK) IPO: Geopolitical Risk and Valuation

China Tobacco Intl (HK) (中烟香港) Trading Update - Expensive Vice

Equity Bottom-Up

China Tobacco International (HK) / Equity Bottom-Up

China Tobacco International (HK) (6055 HK)

<ul class="">
<li>China Tobacco International (HK) Co. Ltd. plans to go public on the Hong Kong Stock Exchange.</li>
<li>The state-owned company holds monopolistic positions in tobacco leaf export, tobacco leaf import, and cigarette export.</li>
<li>Both revenue growth and margins declined year-over-year in the first three quarters of 2018.</li>
<li>We believe the China cigarette market will not recover, as all signals suggest weak demand.</li>
</ul>


China Tobacco International (HK) Co. Ltd. plans to go public on the Hong Kong Stock Exchange.
The state-owned company holds monopolistic positions in tobacco leaf export, tobacco leaf import, and cigarette export.
Both revenue growth and margins declined year-over-year in the first three quarters of 2018.
We believe the China cigarette market will not recover, as all signals suggest weak demand.


China Tobacco International (IPO): The Monopolist Will Not Recover