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

Xiaomi (1810 HK): Huawei Moving Focus Back to Consumer Business

China Internet Weekly (13Apr2020): Tencent, BILI, Xiaomi, TCOM, IQ, TAL

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

Xiaomi Corp (1810 HK) - Are We There Yet?

China Internet Weekly (10Feb2020): Xiaomi Expanding in Europe, Koolearn Stock Up 37%

China Internet Weekly (6Dec2020): Xiaomi’s Best TV Set Seller, TME Acquired 10% of Universal Music

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

JD.com (JD): Raised Goods Prices Significantly After Wuhan Was Sealed as Epicenter of Coronavirus

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>Many mobile handsets were ever locked in the warehouses of closed shopping malls so that they could not be sold on internet.</li>
<li>The air conditioner giant, Gree (000651), announced that its revenues were “close to zero in February” because of the shutdown over residential communities. We believe Xiaomi’s TV sets faced the same situation.</li>
<li>We believe the market consensus is still over optimistic on the Q1 performance.</li>
</ul>
<p>Our previous coverage on Xiaomi:</p>
<ul>
<li><a href="https://www.smartkarma.com/compose/insight/38004/edit" target="_blank" rel="noopener">Xiaomi (1810 HK): Smartphone Accounts for Only 36% of Gross Profits</a></li>
<li><a href="https://www.smartkarma.com/insights/xiaomi-placement-the-selling-continues" target="_blank" rel="noopener">Xiaomi Placement - The Selling Continues</a></li>
</ul>


Many mobile handsets were ever locked in the warehouses of closed shopping malls so that they could not be sold on internet.
The air conditioner giant, Gree (000651), announced that its revenues were “close to zero in February” because of the shutdown over residential communities. We believe Xiaomi’s TV sets faced the same situation.
We believe the market consensus is still over optimistic on the Q1 performance.

Our previous coverage on Xiaomi:

Xiaomi (1810 HK): Smartphone Accounts for Only 36% of Gross Profits
Xiaomi Placement - The Selling Continues


Xiaomi (1810 HK): Qualitative Review of Pandemic Impacts in 1Q2020