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 (BABA US): Looking to a Better ‘22

Alibaba (BABA): Don’t Be Pessimistic About E-Commerce, Especially Big Platforms

China’s Central Bank Digital Currency; Is It a Major Threat to Non-Bank Digital Payment Providers?

Alibaba (BABA): F2Q22 Outlook, Slow in App and Rapid in Physical Store

Alibaba (BABA): E-Commerce in New National Plan

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

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>Customer management revenue was slower than we expected and other China retail revenue was more rapid than we expected. </li>
<li>We expected physical store will impact margin, but did not expect the margin declined.</li>
<li>We reduce the upside to 11% from 27% and reduce the price target to HK$181 from HK$208.</li>
</ul>


Customer management revenue was slower than we expected and other China retail revenue was more rapid than we expected. 
We expected physical store will impact margin, but did not expect the margin declined.
We reduce the upside to 11% from 27% and reduce the price target to HK$181 from HK$208.


Alibaba (BABA): 2Q22, Revenue Growth Higher than Our Estimate, But Margin Lower than Our Estimate