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): 1Q26 Growth Slows, But March Plunge Is Overdone, 38% Upside

Tencent Music (TME): 3Q25, Offline Rev Up by 50%, Margin Improved for 13 Quarters

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

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>TME continued to raise subscription prices and the paying user base continued to expand.</li>
<li>We believe artificial intelligence will not impact TME’s business, as the musician base was large enough before AI.</li>
<li>We also believe TME has an upside of 60% and a price target of $USD24 for the year end 2026.</li>
</ul>


TME continued to raise subscription prices and the paying user base continued to expand.
We believe artificial intelligence will not impact TME’s business, as the musician base was large enough before AI.
We also believe TME has an upside of 60% and a price target of $USD24 for the year end 2026.


Tencent Music (TME): 4Q25, AI Far From Killing Music, 60% Upside