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

Virscend (1565HK) – Revenues Accelerated & Margin Improved in 2H17

Maple Leaf (1317 HK) – Achieves Both Aggressive Expansion and Record High Margin

Tianli Education (1773 HK) Grows Dramatically Without Typical Shortages, Upside 22%~43%

Key Risk to Private Schools: Property Developers Standing Behind

Equity Capital Markets

Shangde Qizhi Education / Equity Capital Markets

<ul class="">
<li>The chairman has experience in both teaching and business.</li>
<li>The admissions of primary school and kindergarten are in demand.</li>
<li>The revenue growth accelerated, especially the main business, Experimental School.</li>
<li>The gross margin improved.</li>
</ul>


The chairman has experience in both teaching and business.
The admissions of primary school and kindergarten are in demand.
The revenue growth accelerated, especially the main business, Experimental School.
The gross margin improved.


Shangde Qizhi – School Admission in Demand, Higher Growth Rate and Margin