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 (700 HK): Positioning After 41% YTD Rally with Collar Strategies

Volatility Cones: Opportunities Across 8 Hong Kong Stocks

Tencent (700 HK) Vs. Hang Seng (HSI INDEX): Price-Ratio Hits Trigger Zone

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

Tencent Music (TME): 2Q25, Concert Revenue Booming, Margin Hitting Historical High

Tencent (700 HK): 2Q25 Preview, Game Up by 16%

Tencent Music (TME): Quick Note – Acquisition of Ximalaya

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 2Q25, game revenue increased by 22% YoY and FinTech revenue growth reached two digits.</li>
<li>The operating margin improved to 34.5% in 2Q25 compared to 30.6% in 2Q24.</li>
<li>The 10-year P/E band suggests an upside of 22.5% and a target price of HK$718 for year end 2025.</li>
</ul>


In 2Q25, game revenue increased by 22% YoY and FinTech revenue growth reached two digits.
The operating margin improved to 34.5% in 2Q25 compared to 30.6% in 2Q24.
The 10-year P/E band suggests an upside of 22.5% and a target price of HK$718 for year end 2025.


Tencent (700 HK): 2Q25, Game Revenue Up by 22%, FinTech Back to 2 Digits