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

Alibaba Group Holding Ltd (9988 HK) - Charts Imply Another 20-25% Upswing

XPeng Inc (9868 HK) - Bullish Technical Triggers Confirm MT Uptrend - Target 25-30% Upswing

PetroChina Co Ltd (857 HK) - Price and Momentum Breakouts in March Confirm 10-15% Upside

Alibaba (9988 HK): Still Significant Upside After Surging

China Internet Weekly (9Jan2023): Ant Group, Alibaba, Tencent, ByteDance, China Literature

China Internet Weekly (16Jan2023): Alibaba, Tencent, JD.com, ByteDance

Gravity Works As WeWork Doesn't; Now Plan B

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

Alibaba Group Holding  / Equity Bottom-Up

<ul>
<li>Revenue grew by 2% YoY in 3Q22, as the decrease of online sales offset the increase of physical stores.</li>
<li>The operating margin began to improve, as the company cut sales and marketing expenses in minor businesses.</li>
<li>We believe the stock has an upside of 78% for March 2024 and the price target will be HK$170.</li>
</ul>


Revenue grew by 2% YoY in 3Q22, as the decrease of online sales offset the increase of physical stores.
The operating margin began to improve, as the company cut sales and marketing expenses in minor businesses.
We believe the stock has an upside of 78% for March 2024 and the price target will be HK$170.


Alibaba (9988 HK): 3Q23, Growth Flat, But Margin Up, Buy