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

Tencent (700 HK): In 1Q2020, Game Market Surged More Than We Expected

Tencent (700 HK): 1Q2020 Revenue Accelerated as Expected, But Still Some Surprises

IQiyi Earnings: Optimistic Q1 Guidance Even Though Subscribers May Not Stay After Virus Period

IQIYI: Some Flaws in the Wolfpack's Short Seller Report

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

<ul class="">
<li>iQiyi lays off 10% ~ 50% employees in different departments.</li>
<li>We believe IQ can hardly survive the epidemic even if the company can raise cash to fill the losses.</li>
<li>We believe IQ will have have limited movies or TV series for its users in following quarters.</li>
</ul>
<p>Our previous coverage on iQiyi:</p>
<ul>
<li><a href="https://www.smartkarma.com/insights/iqiyi-some-flaws-in-the-wolfpack-s-short-seller-report" target="_blank" rel="noopener">IQIYI: Some Flaws in the Wolfpack’s Short Seller Report</a></li>
<li><a href="https://www.smartkarma.com/insights/iqiyi-iq-an-empty-tv-box" target="_blank" rel="noopener">IQiyi (IQ): An Empty TV Box</a></li>
<li><a href="https://www.smartkarma.com/insights/iqiyi-iq-margin-significantly-recovered-after-dismissing-a-floor-of-employees" target="_blank" rel="noopener">IQiyi (IQ): Margin Significantly Recovered After Dismissing a Floor of Employees</a></li>
</ul>


iQiyi lays off 10% ~ 50% employees in different departments.
We believe IQ can hardly survive the epidemic even if the company can raise cash to fill the losses.
We believe IQ will have have limited movies or TV series for its users in following quarters.

Our previous coverage on iQiyi:

IQIYI: Some Flaws in the Wolfpack’s Short Seller Report
IQiyi (IQ): An Empty TV Box
IQiyi (IQ): Margin Significantly Recovered After Dismissing a Floor of Employees


IQiyi (IQ): Why “Chinese Netflix” Dismissing Employees During Home Staying? A Content Angle

iQIYI Inc

IQiyi (IQ): Why “Chinese Netflix” Dismissing Employees During Home Staying? A Content Angle