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 New Lows and Buy Strategy with Macro Hurdles

Alibaba (BABA): Eventually Non-State Owned Companies Do Not Need to Face Another Judgement Day

Tencent (700 HK): Tencent Music – Pre-IPO Monopolist

Byte Dance Lawsuits Show: Tencent (700 HK) Is Small Companies’ Inevitable Platform and Competitor

Tencent (700 HK) – Reform Official Accounts, Will Make Money

Equity Bottom-Up

<ul>
<li>The revenue growth tumbled, as Tencent cannot collect money from two popular games without approval.</li>
<li>We notice that Tencent’s stock price has declined for 5 months.</li>
<li>According to our P/E band, Tencent has upside of 12.8%, but we do not suggest to buy any stock with upside less than 15%. HOLD.</li>
</ul>


The revenue growth tumbled, as Tencent cannot collect money from two popular games without approval.
We notice that Tencent’s stock price has declined for 5 months.
According to our P/E band, Tencent has upside of 12.8%, but we do not suggest to buy any stock with upside less than 15%. HOLD.


Tencent (700 HK) – Revenue Growth Tumbled as Games Got Problem, But HOLD