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 (PDD): 3Q21, Market Hates Low Growth, But We Love Profit

Alibaba (BABA): Don’t Be Pessimistic About E-Commerce, Especially Big Platforms

Alibaba (BABA): Overly Impacted, Accumulate Before 3Q22 Result

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

Pinduoduo (PDD): Three Hacking Scandals Last Week

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

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>PDD made profit for the first time after IPO.</li>
<li>PDD shrank its direct sales.</li>
<li>PDD stopped actively accumulating users.</li>
<li>We believe total revenue will grow by 45% in 2022.</li>
<li>We believe PDD's operating margin will turn positive in 2022.</li>
<li>We also believe PDD’s stock price has a downside of 15%.</li>
</ul>


PDD made profit for the first time after IPO.
PDD shrank its direct sales.
PDD stopped actively accumulating users.
We believe total revenue will grow by 45% in 2022.
We believe PDD's operating margin will turn positive in 2022.
We also believe PDD’s stock price has a downside of 15%.


Pinduoduo (PDD): Made Profit After Giving up Direct Sales and User Accumulation

PDD Holdings

Pinduoduo (PDD): Made Profit After Giving up Direct Sales and User Accumulation