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

Koolearn (新东方在线) IPO Review - Yet to See Results from Increased Spending

Koolearn (新东方在线) Trading Update - A Wobbly Start

GSX Techedu (跟谁学) IPO Early Thoughts - Successful Pivot Away from Marketplace Model

New Oriental (EDU): Educator License Not A Concern

New Oriental (EDU): Do Not Fear Q2 Record Losses, 27% Upside

New Oriental (EDU): Online Subsidiary Koolearn, Significantly Outperforms Peers and Goes Public!

EDU & TAL：August Quarter: A Big Gamble and a Small Gamble

Equity Capital Markets

East Buy Holding  / Equity Capital Markets

<ul class="">
<li>Koolearn updated its IPS prospectus and posted operating losses for 1H2019 (ended Nov. 2018).</li>
<li>The company spent significantly on online promotion, but we believe that online promotion is not useful.</li>
<li>We also believe online marketing expenditures are not a productive use of the Company's cash, as Koolearn's brand was already well known among consumers due to its parent company, New Oriental.</li>
</ul>


Koolearn updated its IPS prospectus and posted operating losses for 1H2019 (ended Nov. 2018).
The company spent significantly on online promotion, but we believe that online promotion is not useful.
We also believe online marketing expenditures are not a productive use of the Company's cash, as Koolearn's brand was already well known among consumers due to its parent company, New Oriental.


Koolearn: Marketing Expenses Have Taken Operating Profits Down the Drain