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): Acquisition of Baidu’s IQiyi, Very Possible

Tencent Gets Another Win - Brawl Stars off to a Great Start in China

Tencent (700 HK): Incentives on Acquisition of IFlix

Tencent (700 HK): 1Q2020 Revenue Accelerated as Expected, But Still Some Surprises

Tencent (700 HK): Potential Merger of E-Sports Subsidiaries, Huya Merely The Tip of The Iceberg

Tencent (700 HK): Advertisers Get Significant Traffic from WeChat Mini-Program

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>Tencent suspended  iOS users from paying WeChat Public Accounts' add-on services.</li>
<li>Tencent has been trying not to pay the “Apple tax” for a long time.</li>
<li>Apple is much bigger than Tencent in financials, but Tencent has more users than Apple in China.</li>
<li>We believe the pandemic provides Tencent an opportunity to bargain with Apple.</li>
</ul>


Tencent suspended  iOS users from paying WeChat Public Accounts' add-on services.
Tencent has been trying not to pay the “Apple tax” for a long time.
Apple is much bigger than Tencent in financials, but Tencent has more users than Apple in China.
We believe the pandemic provides Tencent an opportunity to bargain with Apple.


Tencent (700 HK): Fighting Back Against “Apple Tax”