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

JD Logistics (京东物流) Lock-Up Expiry - Cornerstone Sitting on Losses, Pre-IPO Investors Still Up

2022 High Conviction - JD Logistics - Market Leader at an Attractive Valuation

JD Logistics (2618 HK): Shrinking Operating Loss in 2H21 and Exclusive Revenue Support

JD Logistics: Gray Market Value & The Very Long-Term View Driven by Technological Innovations

JD Logistics (京东物流) Update Note - Index Inclusion Requirements - Still Has Some Way to Go

Gravity Works As WeWork Doesn't; Now Plan B

Bifurcated Chinese Express Market Developing

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>We believe integrated supply chain is more meaningful to the long-term growth.</li>
<li>We also believe JD.com provides half of JD Logistics (JDL)’ revenue.</li>
<li>We believe JDL has the incentive of expansion but does not have the incentive of profitability.</li>
<li>We set a downside of 13% for the end of 2022.</li>
</ul>


We believe integrated supply chain is more meaningful to the long-term growth.
We also believe JD.com provides half of JD Logistics (JDL)’ revenue.
We believe JDL has the incentive of expansion but does not have the incentive of profitability.
We set a downside of 13% for the end of 2022.


JD Logistics (2618 HK): Higher Growth, Higher Loss