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

Bilibili (BILI): 2Q21, Rapid Growth and Record Loss, Significantly Overvalued

China Gaming Restrictions Are FAR More Severe Than the Market Is Assuming

Tencent (700 HK): Pandemic Spreading in China Again, Cancel Travel and Play Game

Tencent (700 HK): Juvenile Internet Usage Will Not Decrease

Tencent: Assessment of New Tax Proposal for Game Industry

Gravity Works As WeWork Doesn't; Now Plan B

Bifurcated Chinese Express Market Developing

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>WeChat Pay still grew strongly, taking advantage of AliPay’s mess.</li>
<li>Mobile game slowed down because of high comparison base, but the pandemic came back and might lead to another round of lockdown.</li>
<li>The only problem is the stagnancy of the online TV market.</li>
<li>We believe the stock has an upside of 42% for the end of June 2022. Buy.</li>
</ul>


WeChat Pay still grew strongly, taking advantage of AliPay’s mess.
Mobile game slowed down because of high comparison base, but the pandemic came back and might lead to another round of lockdown.
The only problem is the stagnancy of the online TV market.
We believe the stock has an upside of 42% for the end of June 2022. Buy.


Tencent (700 HK): 2Q21, Generally Healthy Quarter and Overly Impacted Price