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

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

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

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

China's Live Streaming: A Fab Vulnerable to Cyberspace Content Scrutiny

Equity Bottom-Up

<ul class="">
<li>We believe the stock price plunge was due to a short seller’s manipulation.</li>
<li>We believe the negative comment from the short seller, J Capital, was due to their neglect of “agencies”.</li>
<li>Momo still holds half the live video market.</li>
<li>We believe the operating margin will recover after Momo integrates the acquired Tantan.</li>
<li>Our EPS estimate is significantly lower than the market consensus, but our P/E band still suggests an upside of 128%. Buy.</li>
</ul>


We believe the stock price plunge was due to a short seller’s manipulation.
We believe the negative comment from the short seller, J Capital, was due to their neglect of “agencies”.
Momo still holds half the live video market.
We believe the operating margin will recover after Momo integrates the acquired Tantan.
Our EPS estimate is significantly lower than the market consensus, but our P/E band still suggests an upside of 128%. Buy.


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

Hello Group

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