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 Fresh Lows on Tech Carnage in 2019

Tencent: A Brief Statistical Review of Game Approvals

Tencent (700 HK): In Fact Benefited from License Suspension

Business Happenings in the Americas that May Be “Below the Radar” - Week Ending October 28, 2018

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

Tencent (700 HK): Dominant Viewpoint Misunderstands Reorganization

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

TRACKING TRAFFIC/Chinese Express & Logistics: September Express Pricing & Growth Weakest On Record

Equity Bottom-Up

<ul class="">
<li>Paying game player base is still stable.</li>
<li>A popular drama accelerated the growth of video advertisement.</li>
<li>Venture capital investments began to focus on game and AI.  We believe this is a positive signal of cost control.</li>
<li>Historical P/E average suggests an upside of 38%, BUY.</li>
</ul>


Paying game player base is still stable.
A popular drama accelerated the growth of video advertisement.
Venture capital investments began to focus on game and AI.  We believe this is a positive signal of cost control.
Historical P/E average suggests an upside of 38%, BUY.


Tencent (700 HK): Ultimately 3Q18 Not as Bad as Widely Expected, Upgrade to Buy