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): Financials Rallied in 2Q20, But Stock Has Surged for Months, 18% Downside

China Internet Weekly (14Sep2020): Meituan & Ele.me Criticized as Sweatshop

Meituan Dianping:  From Nowhere to Key Underweight

Meituan (3690 HK): Expects Significant Revenue Decline and Stock Price Downside

Meituan (3690 HK) Pre-Earning: Catering Industry Decreased 43% in China? Maybe Worse.

Meituan (3690 HK): We Give Conservative Revenue Estimates and Significant Downside

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 deleted AliPay in its apps last week, but resumed it this week.</li>
<li>Meituan cannot leave AliPay, as AliPay is powerful in retailing.</li>
<li>Meituan does not trust AliPay, as AliPay is a related party of and is substantially supporting Meituan’s top competitor, Ele.me.</li>
<li>We believe the dilemma is the top risk after the pandemic.</li>
</ul>


Meituan deleted AliPay in its apps last week, but resumed it this week.
Meituan cannot leave AliPay, as AliPay is powerful in retailing.
Meituan does not trust AliPay, as AliPay is a related party of and is substantially supporting Meituan’s top competitor, Ele.me.
We believe the dilemma is the top risk after the pandemic.


Meituan (3690 HK): Paused AliPay for the Third Time, The Dilemma Can Be Top Risk After Pandemic