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

China Internet Weekly (27Jul2020): Online Retail Continued to Accelerate in June

China Internet Weekly (3Aug2020): JD Acquired Appliance Store, Xiaomi Phone Sales Plunged

BABA Reduce on Strength Ahead of 20% Pullback

Alibaba (BABA): Tax Bureau Eyes Online Retailers

China Internet Weekly (29Jun2020): BABA Food Delivery Worker Tested Positive, TCOM to Sell Food

Alibaba (BABA): China Express Packages Surged in May

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>The app “YouCam Makeup” is on the Indian China-based app blacklist.</li>
<li>The app is owned by Perfect Corp, in which Alibaba is an investor. However, the founder of Perfect Corp is a Taiwanese. We do not believe the company steals data for Beijing.</li>
<li>The investment is not significant for Alibaba. However, we believe <a href="https://www.smartkarma.com/entities/cyberlink-corp" target="_blank" data-smartkarma-citation="entities:16439:1" rel="noopener">Cyberlink Corp (5203 TT)</a>, as Perfect Corp’s parent company, will be negatively impacted.</li>
</ul>


The app “YouCam Makeup” is on the Indian China-based app blacklist.
The app is owned by Perfect Corp, in which Alibaba is an investor. However, the founder of Perfect Corp is a Taiwanese. We do not believe the company steals data for Beijing.
The investment is not significant for Alibaba. However, we believe Cyberlink Corp (5203 TT), as Perfect Corp’s parent company, will be negatively impacted.


Alibaba (BABA): Innocent Taiwanese Investee in India Blacklist