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

Kuaishou (1024 HK): 1Q21, Still in a Time of Change

Kuaishou Lock-Up Expiry - Getting Close to IPO Price, with US$18bn+ Lock-Up. CCASS Movement as Well.

Kuaishou (1024 HK): Opportunity Coming After Lock-Up Expiry

Kuaishou (1024 HK): Q4, Higher Growth , Higher Margin, User Base Closer to TikTok, But Overvalued

Kuaishou (1024 HK): Short Video Market Expanding, But Express Version Not Profitable

Kuaishou (1024 HK): Expanding Ad Mkt for 2020 and Anime Plan for 2021, but Needs 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 class="">
<li>Kuaishou (KS)'s active users was stable after the Chinese New Year, while other apps' user bases decreased.</li>
<li>KS' time on site increased YoY in 1Q21.</li>
<li>We believe KS is riding on the boom of e-commerce live broadcasting.</li>
<li>We also believe Tencent's game copyrights support KS' game live broadcasting.</li>
<li>We conclude the stock downside has reduced.</li>
</ul>
<p>Our previous coverage on Kuaishou:</p>
<ul>
<li>
<a href="https://www.smartkarma.com/insights/kuaishou-1024-hk-q4-higher-growth-higher-margin-user-base-closer-to-tiktok-but-overvalued" target="_blank" data-smartkarma-citation="insights:49550" rel="noopener">Kuaishou (1024 HK): Q4, Higher Growth , Higher Margin, User Base Closer to TikTok, But Overvalued</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/kuaishou-1024-hk-expanding-ad-mkt-for-2020-and-anime-plan-for-2021-but-needs-reasonable-price" target="_blank" data-smartkarma-citation="insights:49155" rel="noopener">Kuaishou (1024 HK): Expanding Ad Mkt for 2020 and Anime Plan for 2021, but Needs Reasonable Price</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/kuaishou-1024-hk-short-video-market-expanding-but-express-version-not-profitable" target="_blank" data-smartkarma-citation="insights:48130" rel="noopener">Kuaishou (1024 HK): Short Video Market Expanding, But Express Version Not Profitable</a> </li>
</ul>


Kuaishou (KS)'s active users was stable after the Chinese New Year, while other apps' user bases decreased.
KS' time on site increased YoY in 1Q21.
We believe KS is riding on the boom of e-commerce live broadcasting.
We also believe Tencent's game copyrights support KS' game live broadcasting.
We conclude the stock downside has reduced.

Our previous coverage on Kuaishou:


Kuaishou (1024 HK): Q4, Higher Growth , Higher Margin, User Base Closer to TikTok, But Overvalued 

Kuaishou (1024 HK): Expanding Ad Mkt for 2020 and Anime Plan for 2021, but Needs Reasonable Price 

Kuaishou (1024 HK): Short Video Market Expanding, But Express Version Not Profitable 


Kuaishou (1024 HK): Positive Operating Data in 1Q21, But Not Enough

Kuaishou Technology

Kuaishou (1024 HK): Positive Operating Data in 1Q21, But Not Enough