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

COVID-19 Won't Solve Weibo's Core Problems; Company Guides 1Q20 Revenue 15-20% Lower

Warning Sign for Microlenders Globally? SINA Faces Difficulty Collecting Debt Due to Coronavirus

Weibo (WB): 24 Hours Suspension as Punishment to Reposters, Revenues Declined First Time

Weibo (WB): Revenues Slowed Down Significantly in 4Q2018, Failed in Transition

Weibo (WB) - Short Seller Has Left, Little Downside and Significant Upside, Upgrade to Buy

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

Equity Bottom-Up

<ul>
<li>In 2Q19, the revenue growth plunged to zero, but the operating margin was still stable.</li>
<li>We apologized that we picked P/E valuation between P/E and P/S in our last note, but the market followed P/S.</li>
<li>We conclude a downside of 40% based on the P/S ratios of Chinese entertainment companies.</li>
</ul>


In 2Q19, the revenue growth plunged to zero, but the operating margin was still stable.
We apologized that we picked P/E valuation between P/E and P/S in our last note, but the market followed P/S.
We conclude a downside of 40% based on the P/S ratios of Chinese entertainment companies.


Weibo (WB): Zero Growth in 2Q19, Dead as a Political Forum, 40% Downside

Weibo Corp

Weibo (WB): Zero Growth in 2Q19, Dead as a Political Forum, 40% Downside