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

GEM Fund Positioning Update:  The COVID Unwind.

EM Banks: Screening for Value and Resilience

Merger Undone: Tougher Outlook for Sabadell, BBVA Plans Buybacks and EM M&A

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

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

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

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>This is the first time we conclude a downside for the stock price.</li>
<li>JD’s stock price has risen by 161% year to date, while the NASDAQ Composite Index has increased by only 32% in the same period.</li>
<li>Our pro forma P/S band suggests a downside of 8%.</li>
<li>Revenue grew strongly in 3Q20.</li>
<li>The gross margin of direct sales continued to decline, but operating expenses were controlled well.</li>
</ul>


This is the first time we conclude a downside for the stock price.
JD’s stock price has risen by 161% year to date, while the NASDAQ Composite Index has increased by only 32% in the same period.
Our pro forma P/S band suggests a downside of 8%.
Revenue grew strongly in 3Q20.
The gross margin of direct sales continued to decline, but operating expenses were controlled well.


JD.com (JD): Stock Price Concern for First Time After Excellent 3Q20 Result

JD.com Inc (ADR)

JD.com (JD): Stock Price Concern for First Time After Excellent 3Q20 Result