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

Pinduoduo Placement - Should Do Well If, It Corrects Beforehand

China Internet Weekly (11Jan2021): PDD Employee Died at Frozen Deep Night, US Banned 8 Chinese Apps.

Pinduoduo (PDD US): Know When to Fold, Know When to Run

China Internet Weekly (8Jun2020): AMD Said Not to Buy AMD on Pinduoduo.

Pinduoduo (PDD): Some Positive Points in 4Q2019 Result, But Remain Cautious

China Internet Weekly (24Aug2020): TSLA Refused PDD’s Customers, JD Fired BABA’s Sto Express

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 class="">
<li>PDD’s stock price plunged as the growth rate of its operating data slowed down in 2Q20.</li>
<li>However, the financial performance improved for both top line and bottom line.</li>
<li>We believe PDD’s expansion strategy does not work in the weak economy.</li>
<li>The recent trials of strategy changes are not successful.</li>
</ul>


PDD’s stock price plunged as the growth rate of its operating data slowed down in 2Q20.
However, the financial performance improved for both top line and bottom line.
We believe PDD’s expansion strategy does not work in the weak economy.
The recent trials of strategy changes are not successful.


Pinduoduo (PDD): Least Loss Since IPO, But Market Just Needs an Excuse to Leave the Strategy

PDD Holdings

Pinduoduo (PDD): Least Loss Since IPO, But Market Just Needs an Excuse to Leave the Strategy