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

Thoughts on Amazon –What Does Its Valuation Tells Us?

Netflix & Amazon Expand in Korea – Not a Coincidence

Okja: The Fight Between Netflix Vs. CJ CGV

Equity Capital Markets

New Oriental Education & Techn / Equity Capital Markets

<ul>
<li>Koolearn has New Oriental’s brand advantage, as Koolearn’s Chinese name is New Oriental Online.</li>
<li>Koolearn has the largest market share in online after-school tutoring.</li>
<li>Koolearn’s revenue and student growths significantly outperform the market sizes.</li>
<li>Although the expansion in K-12 courses has brought margin pressure, we believe it is necessary to strengthen the leading position in the low concentration market.</li>
<li>Operating cash flows increased during the margin decline.</li>
</ul>


Koolearn has New Oriental’s brand advantage, as Koolearn’s Chinese name is New Oriental Online.
Koolearn has the largest market share in online after-school tutoring.
Koolearn’s revenue and student growths significantly outperform the market sizes.
Although the expansion in K-12 courses has brought margin pressure, we believe it is necessary to strengthen the leading position in the low concentration market.
Operating cash flows increased during the margin decline.


New Oriental (EDU): Online Subsidiary Koolearn, Significantly Outperforms Peers and Goes Public!