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

Equity Bottom-Up

Goodbaby International Hldg / Equity Bottom-Up

<ul><li>Operating profits increased 52% in 2017.</li><li>The EPS decline is merely due to a tax law change.</li><li>The gross margin of both main business lines improved.</li><li>The Company overcame many difficulties in its history.</li><li>The P/E band suggests an upside of 94%.  BUY.</li></ul>

Operating profits increased 52% in 2017.The EPS decline is merely due to a tax law change.The gross margin of both main business lines improved.The Company overcame many difficulties in its history.The P/E band suggests an upside of 94%.  BUY.

Goodbaby Intl (1086 HK) – Price Surged After Annual Results, But Still Leaves Significant Upside