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): Gets Caught Stealing Alibaba’s Data in An Anti-Trust Investigation

Meituan Dianping: Quantamentals Shine a Ray of Hope on the Treacherous Path to Profitability

Meituan Dianping Quantamental: Are 2Q's Excellent Results Sustainable?

Meituan Dianping – Dianping Can Only Feed Meituan, Public Offering for Unprofitable Investments

Meituan Dianping IPO Preview: The China O2O Powerhouse

Equity Bottom-Up

<ul>
<li>The first financial release after IPO is worse than the viewpoint in our last report.</li>
<li>The shrinking operating losses in prospectus before IPO expanded in the first financial statement after IPO.</li>
<li>The shrinking operating cash outflows in prospectus before IPO also expanded in the first financial statement after IPO.</li>
<li>However, Meituan Dianping continues its aggressive diversification.</li>
</ul>


The first financial release after IPO is worse than the viewpoint in our last report.
The shrinking operating losses in prospectus before IPO expanded in the first financial statement after IPO.
The shrinking operating cash outflows in prospectus before IPO also expanded in the first financial statement after IPO.
However, Meituan Dianping continues its aggressive diversification.


Meituan Dianping (3690 HK): 1H18 Results Worse Than Our Last Viewpoint