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

Meituan (3690 HK): Employment Game Going On, But Still Significant Risk

Meituan: Major Overhang Cleared After $534m Fine

Meituan (3690): Positive Signal from Tax Bureau After Negative News from Market Bureau

Meituan (3690 HK): 1Q21, High Growth from Weak Comparison Base, Loss Due to New Business

Meituan (3690 HK): CEO's Poem, as Response to Authorities' Sweat Shop Warning, Could Be Disaster

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>Meituan’s revenue continued to grew fast in 2Q21 due to the low comparison base in 2Q20.</li>
<li>We see restaurants crowded and food delivery scooters running in streets.</li>
<li>Both food delivery and in-store were healthy as the operating margins improved.</li>
<li>The company admitted that it continued to invest heavily in Meituan Select, but no company wins in the community group purchase market.</li>
<li>The operating loss swelled to RMB9.2 billion in 2Q21 from RMB8 billion in 1Q21.</li>
</ul>


Meituan’s revenue continued to grew fast in 2Q21 due to the low comparison base in 2Q20.
We see restaurants crowded and food delivery scooters running in streets.
Both food delivery and in-store were healthy as the operating margins improved.
The company admitted that it continued to invest heavily in Meituan Select, but no company wins in the community group purchase market.
The operating loss swelled to RMB9.2 billion in 2Q21 from RMB8 billion in 1Q21.


Meituan (3690 HK): 2Q21, Initiatives Loss Continued to Swell