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 Bullish Flat with Direction Break Points

Tencent (700 HK): Expect Better 2Q20, But Limited Upside

Tencent (700 HK): Incentives on Acquisition of IFlix

Baidu (BIDU): Obituary - Review the Way to First Loss Since IPO

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.

Event-Driven

<ul>
<li>Tencent proposed to acquire and privatize Sogou (SOGU).</li>
<li>Tencent needs Sogou to compete with Alibaba (BABA) and ByteDance.</li>
<li>Sohu will have a higher growth rate and a positive bottom line after the sale of Sogo.</li>
<li>The deal is positive but not significant to Tencent.</li>
<li>There is still some premium for Sogou compared to the offer price.</li>
</ul>


Tencent proposed to acquire and privatize Sogou (SOGU).
Tencent needs Sogou to compete with Alibaba (BABA) and ByteDance.
Sohu will have a higher growth rate and a positive bottom line after the sale of Sogo.
The deal is positive but not significant to Tencent.
There is still some premium for Sogou compared to the offer price.


Tencent (700 HK): Privatization Offer to Sogou, For Search Engine Competition