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

NetEase (NTES): Slow Down? Operating Profits Up 49% YOY! 30% Upside

NetEase (NTES): Sold Import E-Commerce to Alibaba (BABA), Win-Win Deal

NetEase (NTES): Shaking Off Burdens in Minor Businesses and Got Cash - Smart Moves

China Online Gaming: Structural Shifts Reinforce Tencent and Netease. Tencent Remains Our Top Pick

NetEase: Maturing Game Titles Lead to Weaker Results

Equity Bottom-Up

<ul>
<li>During the license suspension, NetEase showed the ability of developing new versions and contents based on the licensed games.</li>
<li>The China Press Administration began to grant licenses again.</li>
<li>On May 22, NetEase announced 7 new game titles.</li>
<li>NetEase was cutting costs by layoff in the e-commerce business.</li>
<li>The game business itself is worth a value about 28% over the market price. And there are minor businesses such as e-commerce and advertising.</li>
</ul>


During the license suspension, NetEase showed the ability of developing new versions and contents based on the licensed games.
The China Press Administration began to grant licenses again.
On May 22, NetEase announced 7 new game titles.
NetEase was cutting costs by layoff in the e-commerce business.
The game business itself is worth a value about 28% over the market price. And there are minor businesses such as e-commerce and advertising.


NetEase (NTES): Game Business Worth Upside of 28~40% and There Is E-Commerce

NetEase Inc

NetEase (NTES): Game Business Worth Upside of 28~40% and There Is E-Commerce