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

Tencent Holdings – Seinfeld-Ian Roadshow

Alibaba Group Holding – Palace Intrigue

Tencent (700 HK): 3Q21 Outlook: Will Stop Slowing Down, 36% Upside

Tencent 510 Rejection in Line with Call to Test 410 Macro Pivot

Tencent (700 HK): Flat Game Industry in 3Q21, Threats from Small Studios, But Hope from Overseas

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>In 3Q21, revenue unexpectedly slowed down, as struggling education clients did not have advertising budget.</li>
<li>Tencent highlighted its game expansion outside China.</li>
<li>We believe the operating margin will be stable due to the reorganization in April.</li>
</ul>


In 3Q21, revenue unexpectedly slowed down, as struggling education clients did not have advertising budget.
Tencent highlighted its game expansion outside China.
We believe the operating margin will be stable due to the reorganization in April.


Tencent (700 HK): 3Q21, Negative Surprise on WeChat Ad, Reduce Upside to 25% from 36%