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

RLX Technology Pre-IPO - Peer Comparison and Valuation

RLX Technology IPO - Valuation Has More than Doubled in Two Months

China Internet Weekly (18Jan2021): BABA Delivery Man Tried Suicide, Baidu Produces Electric Vehicle

RLX Technology Pre-IPO - The Positives - Fast Growth, Low Penetration

Smoore (麦克韦尔) Pre-IPO: On-The-Ground Visit Revealed Five Risks in China Market

RLX Technology Pre-IPO - The Negatives - Limited Track Record, and Missing International Ops

Smoore Intl (思摩尔国际) IPO Trading: Visible Upside as Peer Performed Well

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 Capital Markets

RLX Technology Inc / Equity Capital Markets

<p>Relx Technology aims to raise around US$1bn in its US IPO.</p>
<ul>
<li>We visited electronic cigarette (e-cig) stores of Relx, Vazo, Yooz, and Moti.</li>
<li>We conclude that the price of Relx-Classic, RMB299, is the benchmark of the e-cig market.</li>
<li>Relx has the largest market share because of its store number.</li>
<li>Vazo discounts its prices to be closer to Relx-Classic.</li>
<li>Yooz and Moti keep about RMB50~60 below Relx-Classic.</li>
</ul>
<p>We have covered the basic background of the company in our earlier insights:</p>
<ul>
<li>
<a href="https://www.smartkarma.com/insights/rlx-technology-pre-ipo-the-positives-fast-growth-low-penetration" target="_blank" data-smartkarma-citation="insights:46797" rel="noopener">RLX Technology Pre-IPO - The Positives - Fast Growth, Low Penetration</a> </li>
<li><a href="https://www.smartkarma.com/insights/rlx-technology-pre-ipo-the-negatives-limited-track-record-and-missing-international-ops" target="_blank" data-smartkarma-citation="insights:46836" rel="noopener">RLX Technology Pre-IPO - The Negatives - Limited Track Record, and Missing International Ops</a></li>
<li><a href="https://www.smartkarma.com/insights/smoore-pre-ipo-on-the-ground-visit-revealed-five-risks-in-china-market" target="_blank" data-smartkarma-citation="insights:34166" rel="noopener">Smoore (麦克韦尔) Pre-IPO: On-The-Ground Visit Revealed Five Risks in China Market</a></li>
</ul>

Relx Technology aims to raise around US$1bn in its US IPO.

We visited electronic cigarette (e-cig) stores of Relx, Vazo, Yooz, and Moti.
We conclude that the price of Relx-Classic, RMB299, is the benchmark of the e-cig market.
Relx has the largest market share because of its store number.
Vazo discounts its prices to be closer to Relx-Classic.
Yooz and Moti keep about RMB50~60 below Relx-Classic.

We have covered the basic background of the company in our earlier insights:


RLX Technology Pre-IPO - The Positives - Fast Growth, Low Penetration 
RLX Technology Pre-IPO - The Negatives - Limited Track Record, and Missing International Ops
Smoore (麦克韦尔) Pre-IPO: On-The-Ground Visit Revealed Five Risks in China Market


RLX Technology Pre-IPO (RLX): Store Visits to Relx and Its Competitors