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

Xiaomi (1810 HK): Terminate Contracts with Small Authorized Stores

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

Xiaomi Placement - Passive Flows Should Offset HSI/HSCEI Selling

Xiaomi Placement - Price Back to Where It Was in Sept. This Time, It's Different.

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>The main competitor, Huawei Group, decided to sell one of its two smartphone brands.</li>
<li>Xiaomi took all the smartphone market share that Huawei Group left behind.</li>
<li>Xiaomi’s revenue growth rate jumped to 35% yoy in 3Q20 versus 3% yoy in 2Q20.</li>
<li>However, so far, we believe the company is slightly overvalued.</li>
</ul>


The main competitor, Huawei Group, decided to sell one of its two smartphone brands.
Xiaomi took all the smartphone market share that Huawei Group left behind.
Xiaomi’s revenue growth rate jumped to 35% yoy in 3Q20 versus 3% yoy in 2Q20.
However, so far, we believe the company is slightly overvalued.


Xiaomi (1810 HK): Taking Advantage of Huawei’s Sale of Smartphone Brand, But Overvalued

Xiaomi Corp

Xiaomi (1810 HK): Taking Advantage of Huawei’s Sale of Smartphone Brand, But Overvalued