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 (Mar 15): BABA & NTES Subsidiaries Seek IPO, Tencent Invests in Rakuten

JD.com: A Detailed Look at Long-Term Margins and Valuation

JD.com (JD): Stock Price Concern for First Time After Excellent 3Q20 Result

JD.com (JD): High Growth and Margin in Q2, Sustainable Factors for Post-Pandemic Performance

JD.com (JD): Found More Exclusive Advantages, But Need More Reasonable Price

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

<ul>
<li>The revenue growth rates accelerated in 4Q20 and 2020.</li>
<li>The operating margins improved in 2020.</li>
<li>Operating cash flow increased 72% in 2020.</li>
<li>Pinduoduo (PDD US) is more likely to compete with Alibaba Group (BABA US)’s Taobao, but not JD.</li>
<li>We believe there will an upside of 15.6% by March 2021.</li>
</ul>


The revenue growth rates accelerated in 4Q20 and 2020.
The operating margins improved in 2020.
Operating cash flow increased 72% in 2020.
Pinduoduo (PDD US) is more likely to compete with Alibaba Group (BABA US)’s Taobao, but not JD.
We believe there will an upside of 15.6% by March 2021.


JD.com (JD): Main Business Accelerated in 4Q20

JD.com Inc (ADR)

JD.com (JD): Main Business Accelerated in 4Q20