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): 3Q21, Magic Awakened by Harry Potter

NetEase (NTES) Pre-Earnings: Exploring Overseas Market

NetEase (NTES): 4Q21, Better than Expectation

Tencent (700 HK): Pandemic Spreading in China Again, Cancel Travel and Play Game

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

Tencent/Netease: Online Game Tightening Coming to an End

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>The lower growth rate in 2Q21 was due to the high comparison base last year.</li>
<li>The new rule of time limit is not a concern.</li>
<li>The pandemic will pull players back to their mobile phones.</li>
<li>Our concern is expense in minor businesses.</li>
<li>We conclude an upside of 7.6%.</li>
</ul>


The lower growth rate in 2Q21 was due to the high comparison base last year.
The new rule of time limit is not a concern.
The pandemic will pull players back to their mobile phones.
Our concern is expense in minor businesses.
We conclude an upside of 7.6%.


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

NetEase Inc

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