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 (700 HK) Target Price Change]: Recovery Aided by Strong Advertising & In Line Game

Tencent Holdings Ltd (700 HK) - Bullish Multi-Month Outlook - Target 450+ (+20-25%)

XPeng Inc (9868 HK) - Bullish Technical Triggers Confirm MT Uptrend - Target 25-30% Upswing

Tencent (700 HK) Earnings Preview: To Stop Decrease in 4Q22 and to Recover in 2023

China Internet Weekly (20Mar2023): Baidu, Tencent, KE

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>As we expected in the preview, total revenue stopped decreasing in 4Q22.</li>
<li>WeChat advertising recovered in 4Q22 earlier than we expected in the preview.</li>
<li>We believe game-related revenues will grow by 8% in 2023 and 19% in 2024.</li>
</ul>


As we expected in the preview, total revenue stopped decreasing in 4Q22.
WeChat advertising recovered in 4Q22 earlier than we expected in the preview.
We believe game-related revenues will grow by 8% in 2023 and 19% in 2024.


Tencent (700 HK): 4Q22, Stop Decreasing WeChat Ad Recovered Earlier