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

China Internet Weekly (Feb 22): Kuaishou VP Arrested, BABA Manager Dead “by Accident”, & Q4 Results

China Internet Weekly (Mar 8): New Law Limits BABA & Tencent’s Loan Biz, BIDU Starts Car Production.

Tencent Music (TME): Upgrade to Buy for First Time After Plunge

Tencent Music (TME): In Q1, Revenues Slowed Down, But Won Users from Competitors, Upgrade to Hold

Tencent Music (TME): Real Main Business Continued to Recover in 3Q20, Downside Has Narrowed

Tencent Music (TME): The Profit Source Still Weak in 2Q20, Downgrade to Sell

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>Online karaoke’ active users decreased by 31% and the time on site decreased by 13%<a target="_blank"> in China</a>.</li>
<li>Music per capita time on site plunged sharply by 26% in China.</li>
<li>Monthly active users of TME’s top app shrank.</li>
<li>China Mobile’s music app is freely using TME’s copyrights.</li>
</ul>


Online karaoke’ active users decreased by 31% and the time on site decreased by 13% in China.
Music per capita time on site plunged sharply by 26% in China.
Monthly active users of TME’s top app shrank.
China Mobile’s music app is freely using TME’s copyrights.


Tencent Music (TME): Less Attractive than Other Entertainments