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 (25May2020): Delivery Orders Surged in April, and Earnings Season

China Internet Weekly (1Jun2020): Internet Information Revenue Up 13%

China Internet Weekly (22Jun2020): Coupon to Promote AliPay, Tencent Develops a Nintendo Game

NetEase (NTES): Again, Our 4Q2019 Estimate Closer to Result Than Consensus

NetEase HK Listing - Early Look - Follow the Leader

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

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

JD.com HK Listing - Early Look - Getting the Ball Rolling

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>Both the growth rates of total revenues and game revenue accelerated in 1Q2020.</li>
<li>However, NTES lost market share to both Tencent and smaller game companies.</li>
<li>Compared with US game developers’ P/E ratios, we believe NTES will have an upside of 15% by the end of 2020.</li>
</ul>


Both the growth rates of total revenues and game revenue accelerated in 1Q2020.
However, NTES lost market share to both Tencent and smaller game companies.
Compared with US game developers’ P/E ratios, we believe NTES will have an upside of 15% by the end of 2020.


NetEase (NTES): Revenue Growth Accelerated to Two-Year High, But Underperformed Tencent and Industry

NetEase Inc

NetEase (NTES): Revenue Growth Accelerated to Two-Year High, But Underperformed Tencent and Industry