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) – Cuts Cloud Computing Sales in US

Alibaba (BABA): Jack Ma’s Retirement Plan - Wants to or Has To?

Alibaba (BABA): Logistics Fails as Part of Aggressive Diversification

Equity Capital Markets

Maoyan Entertainment / Equity Capital Markets

<ul class="">
<li>Entertainment Plus (EP, 猫眼娱乐) was originally an online movie ticket distributor, which has a market share of 61% in China.</li>
<li>Total revenues doubled in 1H18 over1H17.</li>
<li>We break down costs and find that the margin decline is not a concern.</li>
<li>We believe that the major competitor, Alibaba's Taopiaopiao 淘票票, is incapable to launch any price war, as Alibaba has its own problems.</li>
</ul>


Entertainment Plus (EP, 猫眼娱乐) was originally an online movie ticket distributor, which has a market share of 61% in China.
Total revenues doubled in 1H18 over1H17.
We break down costs and find that the margin decline is not a concern.
We believe that the major competitor, Alibaba's Taopiaopiao 淘票票, is incapable to launch any price war, as Alibaba has its own problems.


Entertainment Plus – 60% Market Share, Margin Not a Concern