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 (25May2020): Delivery Orders Surged in April, and Earnings Season

China Internet Weekly (1Jun2020): Internet Information Revenue Up 13%

China Internet Weekly (28Sep2020): BIDU Manager Arrested, TCOM Revenue Shrank QoQ

Baidu (BIDU): Issuing Notes, Another Piece of Evidence on Suspicious Cash Balance

The Rise of a New BAT: ByteDance Enters Warp Speed as It Eyes Baidu's Lunch

Baidu (BIDU): Obituary - Review the Way to First Loss Since IPO

Our Tech Portfolio Update: Holding Up Better Than Relevant Indices So Far

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 class="">
<li>We believe Baidu’s performance would have been weak anyway even without the pandemic.</li>
<li>Baidu’s search revenue decreased by 13% YoY, while a smaller search engine, Sogou (SOGO)’s revenues increased 5% YoY in 1Q2020.</li>
<li>New advertising ways, such as mini-program and live broadcast, are taking advertisers. These hurt both search engine and online TV.</li>
</ul>
<div>
<p>Our previous coverage on Baidu:</p>
</div>
<div>
<ul>
<li><a href="https://www.smartkarma.com/insights/baidu-bidu-issuing-notes-another-piece-of-evidence-on-suspicious-cash-balance" target="_blank" rel="noopener">Baidu (BIDU): Issuing Notes, Another Piece of Evidence on Suspicious Cash Balance</a></li>
<li><a href="https://www.smartkarma.com/insights/baidu-bidu-the-way-back-to-search-engine-will-be-cut-off-by-bytedance" target="_blank" rel="noopener">Baidu (BIDU): The Way Back to Search Engine Will Be Cut Off by ByteDance</a></li>
<li><a href="https://www.smartkarma.com/insights/baidu-bidu-obituary-review-the-way-to-first-loss-since-ipo" target="_blank" rel="noopener">Baidu (BIDU): Obituary - Review the Way to First Loss Since IPO</a></li>
<li><a href="https://www.smartkarma.com/insights/baidu-bidu-the-change-amounts-to-business-suicide-disappointing-existing-users-and-clients" target="_blank" rel="noopener">Baidu (BIDU): The Change Amounts to Business Suicide, Disappointing Existing Users and Clients</a></li>
</ul>
</div>


We believe Baidu’s performance would have been weak anyway even without the pandemic.
Baidu’s search revenue decreased by 13% YoY, while a smaller search engine, Sogou (SOGO)’s revenues increased 5% YoY in 1Q2020.
New advertising ways, such as mini-program and live broadcast, are taking advertisers. These hurt both search engine and online TV.


Our previous coverage on Baidu:



Baidu (BIDU): Issuing Notes, Another Piece of Evidence on Suspicious Cash Balance
Baidu (BIDU): The Way Back to Search Engine Will Be Cut Off by ByteDance
Baidu (BIDU): Obituary - Review the Way to First Loss Since IPO
Baidu (BIDU): The Change Amounts to Business Suicide, Disappointing Existing Users and Clients



바이두(BIDU): 팬데믹은 1분기 실적 부진의 변명일 뿐