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 Placement Lock-Up Expiry - US$10bn+ Block and Buyback Linked Holdco Trade

ECM Weekly (21 February 2021) - Tencent Lock-Up Expiry, SciClone Pharma, Joinn Lab, Bairong, Betta

ECM Weekly (28 February 2021) - Cheerwin, Coupang, DDMP REIT, Aztech, Autohome HK

China Internet Weekly (25Jan2021): Community Locked Down in Shanghai, Delivery Companies Polarized

China Internet Weekly (8Feb21): TikTok Sued Tencent, Tencent Believed to Be Behind Renren Arrest

2021 High Conviction: Long Tencent as All Competitors Are in Trouble

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>The stock price has risen by 30% since we set Tencent as our “high-conviction” equity for 2021.</li>
<li>Chinese game player number shrank by 2% from March 2020.</li>
<li>Chinese online TV active users decreased by 5% in 2020.</li>
<li>In advertising, social media is inferior to e-commerce and short-video platforms.</li>
<li>We believe the stock has a downside of 7.6%.</li>
</ul>


The stock price has risen by 30% since we set Tencent as our “high-conviction” equity for 2021.
Chinese game player number shrank by 2% from March 2020.
Chinese online TV active users decreased by 5% in 2020.
In advertising, social media is inferior to e-commerce and short-video platforms.
We believe the stock has a downside of 7.6%.


Tencent (700 HK): Price Surged, Time to Look at Negative Industry Data