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 to Report 2Q FY24 Results (What Is Priced?), MSC Index Changes for Aug Rebalance Published

Tencent (700 HK): 2Q24, Gross Margins of All Business Lines Improved Significantly

Tencent (700 HK) 3Q24 Earning Preview: Expecting Record High Operating Profit, 27% Upside

China Consumption Weekly (1 Jul 2024): Douyin, Green Tea, Alibaba, Tencent, Haidilao

Tencent/Netease: Zero for Major Names; Industry Revenue Growth Flattish in First Half

Tencent (700 HK): 1Q24, Highest Margin in Seven Years

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>We believe total revenue will grow by 9% YoY and game revenue began to rise in 2Q24.</li>
<li>We believe the operating margin will continue to improve YoY in 2Q24 after the seven-year high in 1Q24.</li>
<li>We set the upside at 35% and the price target at HK$496 for the end of 2025.</li>
</ul>


We believe total revenue will grow by 9% YoY and game revenue began to rise in 2Q24.
We believe the operating margin will continue to improve YoY in 2Q24 after the seven-year high in 1Q24.
We set the upside at 35% and the price target at HK$496 for the end of 2025.


Tencent (700 HK): 2Q24 Preview, Both Growth and Margin to Improve