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 (14Sep2020): Meituan & Ele.me Criticized as Sweatshop

JD Digits: Wide Misunderstandings About Financial Partner of JD.com

JD Digits: Dependence on JD.com - A Bottleneck

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

JD.com (JD): Implies Alibaba Plotted Defamation on “618 Promotion” Sales

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>
<li>Revenue growth accelerated and operating margin improved in 2Q20.</li>
<li>We believe service revenue is more important than product revenue when probing JD.</li>
<li>We also believe the strong performance will continue after the pandemic.</li>
<li>We set an upside of 16% and a price target of US$78.</li>
</ul>


Revenue growth accelerated and operating margin improved in 2Q20.
We believe service revenue is more important than product revenue when probing JD.
We also believe the strong performance will continue after the pandemic.
We set an upside of 16% and a price target of US$78.


JD.com (JD): High Growth and Margin in Q2, Sustainable Factors for Post-Pandemic Performance

JD.com Inc (ADR)

JD.com (JD): High Growth and Margin in Q2, Sustainable Factors for Post-Pandemic Performance