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

KE (BEKE): 2Q21, Expected Revenue and Unexpected Margin, Still Over Impacted

KE (BEKE): The Estate Agency Grew 53% and Housing Market Continues to Boom

KE (BEKE): Pre-IPO Anjuke Asks Authorities to Fine KE Following Alibaba Case

BK (BEKE): Buy for Strong Quarter When Others Fear for Founder’s Death

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 stock price has fallen below the first trading day after IPO.</li>
<li>The new property policy looks harsh but not fatal.</li>
<li>Most municipal governments use price cap, but it is easily bypassed.</li>
<li>The policy aims at existing home transaction, but not new home sales or home rental.</li>
<li>It is ironic that Anjuke, which is significantly larger than BEKE, criticized BEKE for monopoly.</li>
</ul>


The stock price has fallen below the first trading day after IPO.
The new property policy looks harsh but not fatal.
Most municipal governments use price cap, but it is easily bypassed.
The policy aims at existing home transaction, but not new home sales or home rental.
It is ironic that Anjuke, which is significantly larger than BEKE, criticized BEKE for monopoly.


KE (BEKE): New Policy Not Fatal at All, Time to Accumulate

KE Holdings

KE (BEKE): New Policy Not Fatal at All, Time to Accumulate