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

TAL Education (TAL): First Loss Since IPO, But Overreacted, Upgrade to Buy

TAL Education (TAL): Has Won Summer Marketing for Last Opportunity on Internet

TAL Education (TAL): Weak 2Q19 as Expected, But Do Not Short It

TAL - Fully Impacted by Policy Despite Free Riders Launch Class Action – Upgrade to HOLD

TAL Education (TAL): Online Courses Improved Margin in 3Q19, Parents Returning, 44% Upside

New Oriental (EDU): Educator License Not A Concern

EDU & TAL：August Quarter: A Big Gamble and a Small Gamble

Equity Bottom-Up

<ul>
<li>The operating margin reached its 5-year record high and the revenue growth rate began to recover.</li>
<li>We have reiterated many times that TAL can survive all policy impacts.</li>
<li>We believe the Education Ministry of China may loosen the ban on math training due to China Team’s loss in Romanian Master of Mathematics.</li>
<li>However, it is too late to buy TAL, because currently only 13% upside has been left.</li>
</ul>


The operating margin reached its 5-year record high and the revenue growth rate began to recover.
We have reiterated many times that TAL can survive all policy impacts.
We believe the Education Ministry of China may loosen the ban on math training due to China Team’s loss in Romanian Master of Mathematics.
However, it is too late to buy TAL, because currently only 13% upside has been left.


TAL Education (TAL): Margin Reached 5-Year High, Too Late to Buy, Downgrade to Hold