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

TAL Education (TAL): Has Won Summer Marketing for Last Opportunity on Internet

TAL Education: Micro-Quantamentals Reveal Growth Potential and Risks

TAL Education (TAL): Weak 2Q19 as Expected, But Do Not Short It

TAL Education (TAL): Online Courses Improved Margin in 3Q19, Parents Returning, 44% Upside

TAL Education (TAL): Margin Reached 5-Year High, Too Late to Buy, Downgrade to Hold

New Oriental (EDU): Educator License Not A Concern

Equity Bottom-Up

<ul>
<li>TAL booked net losses for the first time in 9 years since IPO.</li>
<li>However, the net losses were mainly due to non-recurring items.</li>
<li>If we were the management of TAL, we would record as more expenses as we can, because the quarter would be ugly anyway.</li>
<li>We just downgraded TAL to Hold in our previous note, but the panic yesterday provided an upside again. Upgrade to Buy.</li>
</ul>


TAL booked net losses for the first time in 9 years since IPO.
However, the net losses were mainly due to non-recurring items.
If we were the management of TAL, we would record as more expenses as we can, because the quarter would be ugly anyway.
We just downgraded TAL to Hold in our previous note, but the panic yesterday provided an upside again. Upgrade to Buy.


TAL Education (TAL): First Loss Since IPO, But Overreacted, Upgrade to Buy