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

Last Week on China Internet (14 Oct 2019): Richest Chinese and Forbes Top Digital Companies

Last Week on China Internet (21Oct19): Baidu Saves Paper Cup, Tencent Signed up China's Largest Bank

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

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

Equity Bottom-Up

<ul>
<li>NetEase (NTES) sold its e-commerce platform Kaola to <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>After the deal, Alibaba (BABA) will have more than half of the import e-commerce market and NTES will get rid of the burden of cash and losses. It is a win-win deal.</li>
<li>We believe NTES has an upside of 26%, combining the game business and the price of the Kao deal.</li>
</ul>


NetEase (NTES) sold its e-commerce platform Kaola to Alibaba Group Holding (BABA US).
After the deal, Alibaba (BABA) will have more than half of the import e-commerce market and NTES will get rid of the burden of cash and losses. It is a win-win deal.
We believe NTES has an upside of 26%, combining the game business and the price of the Kao deal.


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

NetEase Inc

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