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 (20Feb2020): More Physical Stores Moving Online, Logistics Recovering

China Internet Weekly (2Mar2020): Photos of Rush Hour in Shanghai, ByteDance Starts Search App

Alibaba (BABA) | COVID-19 and the Great India Opportunity - An On Ground Perspective

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

Alibaba (BABA): Want Fresh Food? Order Between 0:01~7:00 A.m. Due to Coronavirus

Alibaba (BABA): Freshippo “Borrows” Employees from Restaurants to Fill Online Demand

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

Alibaba Group Holding  / Equity Bottom-Up

<ul>
<li>We believe many Chinese companies will hide profits for future under the excuse of epidemic.</li>
<li>
<a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group (BABA US)</a>’s exemption of service fee is not a big deal for total revenues.</li>
<li>Both <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a>’s TV and handset businesses will be negatively impacted.</li>
</ul>


We believe many Chinese companies will hide profits for future under the excuse of epidemic.

Alibaba Group (BABA US)’s exemption of service fee is not a big deal for total revenues.
Both Xiaomi Corp (1810 HK)’s TV and handset businesses will be negatively impacted.


China Internet Weekly (17Feb2020): Companies May Hide Profits, BABA Fee Exemption Not a Big Deal