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

2024 High Conviction: Meituan / MT (3690 HK) - Big Opportunity Emerging After Plunge

BYD (1211 HK): Largest Producer in Dramatically Expanding Market

China Consumption Weekly (11 Dec 2023): BYD, NIO, Meituan, Alibaba, Tencent

Meituan (3690 HK): 1Q23, Real Operating Profit Turned Positive After Nine Quarters

China Internet Weekly (10Jul2023): Meituan, Alibaba, Ant Group, Tencent

MT (Meituan 3690 HK): 2Q23, Record High Op Profit, 38% Buy

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>We expect total revenue will grow by 24% in 3Q23, as catering has been recovering in China.</li>
<li>We expect Meituan can still earn positive operating profit 3Q23, as the company cut salespeople’s bonuses.</li>
<li>We also believe that the stock has an upside of 87% for year end 2024.</li>
</ul>


We expect total revenue will grow by 24% in 3Q23, as catering has been recovering in China.
We expect Meituan can still earn positive operating profit 3Q23, as the company cut salespeople’s bonuses.
We also believe that the stock has an upside of 87% for year end 2024.


MT (Meituan 3690 HK) Earnings Preview: Rev Up by 24% YoY and 80% Upside, Buy