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): 1Q21, New CEO Cares Financial Data, But Not Operating Data, Buy

Tencent (700 HK): Growth Will Be Back to Level Before Pandemic, But Still Healthy, Buy

Tencent Macro Bull Support Met but Staring at 620 Pivot

Tencent (700 HK): Raises Subscription Fees for Online TV

Tencent (700 HK): Dominant Viewpoint Misunderstands Reorganization

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>On April 15, Tencent began to reorganize its PCG (Platform and Content Group).</li>
<li>Tencent merged Tencent Video and WeSee, but has not merged Tencent News and Kandian so far.</li>
<li>We believe this is a sequel to the reorganization in 2018.</li>
<li>We also believe this further reorganization will help improve margins in 2022.</li>
</ul>


On April 15, Tencent began to reorganize its PCG (Platform and Content Group).
Tencent merged Tencent Video and WeSee, but has not merged Tencent News and Kandian so far.
We believe this is a sequel to the reorganization in 2018.
We also believe this further reorganization will help improve margins in 2022.


Tencent (700 HK): Further Reorganization as Sequel to 2018