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 Kepei Edu (科培教育) Pre-IPO Review - A Well Run Private Higher Education Company

Koolearn (新东方在线) Pre-IPO - Profitable Online Edu Company but Poor Sentiment Weighs

New Regulatory Tightening on Online Education Reads Badly on Koolearn IPO

Tianli Education (1773 HK) Grows Dramatically Without Typical Shortages, Upside 22%~43%

Key Risk to Private Schools: Property Developers Standing Behind

Virscend (1565HK) – Revenues Accelerated & Margin Improved in 2H17

Equity Capital Markets

Summary
<ul class="">
<li>Kepei’s operating margin is higher than all four Chinese colleges listed in Hong Kong.</li>
<li>We believe Kepei’s advantage comes from the founder’s 14 years’ teaching experience.</li>
<li>The Company replaced existing programs with more profitable ones, so revenues grew by 30%.</li>
<li>A new campus is under construction.</li>
</ul>
High Operating Margin
Kepei Education is a private college operator which owns two colleges in Zhaoqing City, Guangdong Province, China:
 1. Guangdong Polytechnic College has 28,575 students…

Summary

Kepei’s operating margin is higher than all four Chinese colleges listed in Hong Kong.
We believe Kepei’s advantage comes from the founder’s 14 years’ teaching experience.
The Company replaced existing programs with more profitable ones, so revenues grew by 30%.
A new campus is under construction.

High Operating Margin
Kepei Education is a private college operator which owns two colleges in Zhaoqing City, Guangdong Province, China:
 1. Guangdong Polytechnic College has 28,575 students…

Kepei Education IPO: The Teacher Achieves Higher Margin Than Pure Businessmen