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 & Nio Inc:  The Definitive EM Underweights

Meituan (3690 HK): 3Q21, Record Loss, But Will Beat Small Companies in Community Group Purchase

Meituan (3690 HK): 2Q21, Initiatives Loss Continued to Swell

Meituan: Major Overhang Cleared After $534m Fine

Meituan (3690 HK): Employment Game Going On, But Still Significant Risk

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>The fine of RMB3.4 billion was based on an investigation long before.</li>
<li>Value Added Tax data shows that Meituan recovered strongly in the holiday of the National Day.</li>
<li>We are confident in Meituan's main business lines.</li>
<li>However, we believe the company should shut its community group purchase.</li>
</ul>


The fine of RMB3.4 billion was based on an investigation long before.
Value Added Tax data shows that Meituan recovered strongly in the holiday of the National Day.
We are confident in Meituan's main business lines.
However, we believe the company should shut its community group purchase.


Meituan (3690): Positive Signal from Tax Bureau After Negative News from Market Bureau