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 (Mar 22): U.S. Ban on Xiaomi Lifted, PDD Chair Resigned, China Parcels Up 100%

Pinduoduo (PDD US): Time to Shine for the Sorcerer’s Apprentice: Initiating Coverage

China Internet Weekly (Mar 29): Margin Call Punched Chinese Equities, Alibaba Plans Store on Tencent

KE Holdings/​​​​​Beike Placement - Too Much, Too Soon. Front Running the Lock-Up Expiry

KE (BEKE): Outperform Competitors in Booming Property Market

KE (BEKE): Riding on Housing Surge in China

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>Revenue grew by 58% yoy in 4Q20 and 53% in 2020.</li>
<li>BEKE broke even in 4Q20 and 2020.</li>
<li>Home sales increased significantly in January and February.</li>
<li>Commission rate has been rising in the market.</li>
<li>We believe the stock price has an upside of 25%.</li>
</ul>


Revenue grew by 58% yoy in 4Q20 and 53% in 2020.
BEKE broke even in 4Q20 and 2020.
Home sales increased significantly in January and February.
Commission rate has been rising in the market.
We believe the stock price has an upside of 25%.


KE (BEKE): The Estate Agency Grew 53% and Housing Market Continues to Boom