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

Weibo (WB) – Strong Q2, But Not to Buy Until Short Seller Leaves

Qutoutiao 趣头条 (QTT) – A Spendthrift Who Pays News Readers Generously

Qutoutiao Pre-IPO - Cash Payments Driving Downloads but Aren't as Effective with Usage

Weibo (WB) – Recent Censorship Not A Concern, Will Grow Strongly

Equity Bottom-Up

<ul class=""><li>We believe a short seller is manipulating WB based on technical analysis, which caused a 14% plunge after Q1 results.</li><li>We also believe the short seller expected poor results for 1Q18.  But when WB posted good results, the short seller, considering the preparation costs, had to continue the short.</li><li>WB achieved both revenue acceleration and margin improvement in 1Q18.</li><li>P/E band suggests upside of 67% and a price target of USD183.</li><li>We believe the buy opportunity for fundamental investors is coming soon.</li></ul>

We believe a short seller is manipulating WB based on technical analysis, which caused a 14% plunge after Q1 results.We also believe the short seller expected poor results for 1Q18.  But when WB posted good results, the short seller, considering the preparation costs, had to continue the short.WB achieved both revenue acceleration and margin improvement in 1Q18.P/E band suggests upside of 67% and a price target of USD183.We believe the buy opportunity for fundamental investors is coming soon.

Weibo (WB): Short Seller May Follow Moving Averages - A Technical View on 14% Plunge

Weibo Corp

Weibo (WB): Short Seller May Follow Moving Averages - A Technical View on 14% Plunge