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): Every Business Line Looks Great in 3Q20, Upgrade to Buy

Tencent – This Deal Keeps Rolling Along

Tencent: Listed Associates Continue to Outperform

Tencent (700 HK): Illegal Gambling Risk in Merger of Huya and Douyu

Tencent (700 HK): Game Accelerating, But Others Slowing Down, Limited Upside

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

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 class="">
<li>The growth rate of China game market fell back to 15% YoY in 2Q20 and 3Q20 from 30% in 1Q20, but the growth rate was still higher than before the pandemic.</li>
<li>E-sports and overseas market are more promising.</li>
<li>Foreign game revenue from China stopped shrinking.</li>
</ul>


The growth rate of China game market fell back to 15% YoY in 2Q20 and 3Q20 from 30% in 1Q20, but the growth rate was still higher than before the pandemic.
E-sports and overseas market are more promising.
Foreign game revenue from China stopped shrinking.


Tencent (700 HK): Strong China Game Market in 3Q20