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: 2Q20: Two Reasons Why I Sleep Well at Night

Netease (NTES US): Upward Journey to Continue

Tencent - A Look at the Quantamentals and Sustainability of Recent Gaming Strength

Tencent 510 Support Pivot Pressure Sets up a Fade Trade

Tencent (700 HK): Expect Better 2Q20, But Limited Upside

Tencent (700 HK): Ban on WeChat Not Significant, But Panic May Continue

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

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>The growth rate of game continued to accelerate in 2Q20. However, game accounted for only 42% of total revenues.</li>
<li>WeChat Advertising and WeChat Pay have been slowing down.</li>
<li>Online TV is unsustainable and unprofitable.</li>
<li>We believe the stock has only an upside of 12%. Downgrade to Hold.</li>
</ul>


The growth rate of game continued to accelerate in 2Q20. However, game accounted for only 42% of total revenues.
WeChat Advertising and WeChat Pay have been slowing down.
Online TV is unsustainable and unprofitable.
We believe the stock has only an upside of 12%. Downgrade to Hold.


Tencent (700 HK): Game Accelerating, But Others Slowing Down, Limited Upside