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

Momo (MOMO): See Recovery Signals, More than 60% Upside

Momo: China's King of Dating Turns to Social Media in Search of Growth

Coronavirus Casualties: China Tech's Ten Biggest Losers

Momo (MOMO) - Short Seller Not Familiar with Live Video, 120% Upside.

Momo (MOMO): No Man Admits He Is a User, Price Will Double

Momo Inc. (NasdaqGS: MOMO): Potential in Monetization Is Better than Expected, Raise TP to US$52

Equity Bottom-Up

<ul class="">
<li>The stock price has risen 32% after the short seller J Capital slammed it.</li>
<li>MOMO’s paying user base of live video increased 22% yoy in 3Q18 and 17% yoy in 4Q2018 even though the live show market shrank in 2018.</li>
<li>We believe MOMO will benefit from small competitors’ bankruptcy.</li>
<li>The growth rate of the main business revenues stopped declining.</li>
<li>Our P/E band suggests upside of 80% for MOMO’s stock price.</li>
</ul>


The stock price has risen 32% after the short seller J Capital slammed it.
MOMO’s paying user base of live video increased 22% yoy in 3Q18 and 17% yoy in 4Q2018 even though the live show market shrank in 2018.
We believe MOMO will benefit from small competitors’ bankruptcy.
The growth rate of the main business revenues stopped declining.
Our P/E band suggests upside of 80% for MOMO’s stock price.


Momo (MOMO): Paying Users Up 17%, Benefiting from Bankrupt Competitors, 80% Upside

Hello Group

Momo (MOMO): Paying Users Up 17%, Benefiting from Bankrupt Competitors, 80% Upside