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

Meituan Dianping: Quantamentals Shine a Ray of Hope on the Treacherous Path to Profitability

Meituan Dianping Quantamental: Are 2Q's Excellent Results Sustainable?

Meituan (3690 HK): Reaping Rewards of Expansion, 33% Upside

Meituan Dianping (3690 HK): 1H18 Results Worse Than Our Last Viewpoint

Meituan Dianping 4Q2018 Quick Read: Monetization Rate and Margins Disappointed

Meituan Dianping – Dianping Can Only Feed Meituan, Public Offering for Unprofitable Investments

Meituan Dianping (美团点评): Thoughts Before Lock-Up Expiry

Equity Bottom-Up

<ul>
<li>Meituan was caught stealing major client data from E-Le-Me, the food delivery competitor owned by <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" rel="noopener" data-smartkarma-citation="entities:787:1">Alibaba Group Holding (BABA US)</a>.</li>
<li>We believe Meituan is trying to finish the competition with Alibaba as quick as they can because Meituan is under the significant pressure to control costs.</li>
<li>We also believe Meituan’s revenue will be stagnant in the remaining three quarters of 2019 due to the cost control efforts.</li>
<li>We believe the stock price rise on 21<sup>st</sup> was merely a defense against the data theft scandal by some existing investors.</li>
</ul>


Meituan was caught stealing major client data from E-Le-Me, the food delivery competitor owned by Alibaba Group Holding (BABA US).
We believe Meituan is trying to finish the competition with Alibaba as quick as they can because Meituan is under the significant pressure to control costs.
We also believe Meituan’s revenue will be stagnant in the remaining three quarters of 2019 due to the cost control efforts.
We believe the stock price rise on 21st was merely a defense against the data theft scandal by some existing investors.


Meituan (3690 HK): Gets Caught Stealing Alibaba’s Data in An Anti-Trust Investigation