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

Tencent Music (TME): 1Q25, Unnoticed Growth Continued, 80% Upside

Tencent (700 HK): 4Q24, Revenue Growth Back to Two Digits

Tencent Music (TME, 1698 HK): 4Q24, Historical Margins Better than Game Time

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>In 1Q25, both total revenue and game revenue growth rates accelerated.</li>
<li>The authorities have been turning from containing games to encouraging games.</li>
<li>We expect the stock has an upside of 34% and a price target of HK$700. Buy.</li>
</ul>


In 1Q25, both total revenue and game revenue growth rates accelerated.
The authorities have been turning from containing games to encouraging games.
We expect the stock has an upside of 34% and a price target of HK$700. Buy.


Tencent (700 HK): 1Q25, Game Revenue Up by 24% YoY, as Industry Encouraged by Authorities