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

NetEase (NTES) Pre-Earnings: Exploring Overseas Market

NetEase (NTES): 4Q21, Better than Expectation

NetEase (9999 HK): Steady Without New Games in 1Q22 and New Games in Pipeline, Buy

NetEase (NTES): Slower in 2Q21, But Do Not Short It

NetEase (NTES): Total and Game Revenue Growth Rates Accelerated in 2020, 29% Upside

NetEase (NTES): 1Q21, Game Slowing Down as Game Industry Has Changed

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>Game revenue recovered due to the new game, <em>“Harry Potter: Magic Awakened”</em>.</li>
<li>Surprisingly, <a href="https://www.smartkarma.com/entities/youdao-inc" target="_blank" data-smartkarma-citation="entities:28315:1" rel="noopener">Youdao, Inc. (DAO US)</a> did not shrink under the pressure of new policy. </li>
<li>We believe both revenue growth and operating margin will rise in 2022.</li>
</ul>


Game revenue recovered due to the new game, “Harry Potter: Magic Awakened”.
Surprisingly, Youdao, Inc. (DAO US) did not shrink under the pressure of new policy. 
We believe both revenue growth and operating margin will rise in 2022.


NetEase (NTES): 3Q21, Magic Awakened by Harry Potter

NetEase Inc

NetEase (NTES): 3Q21, Magic Awakened by Harry Potter