HK/China Equity Long-Short

Osbert Tang, CFA

Osbert Tang is an equity analyst with over 20 years of experience with focuses on China transport, infrastructure, industrials and utilities sectors. He has been based in Shanghai since 2003, accumulated nearly 20 years of on-ground knowledge on the Chinese economy and financial markets, and has a wealth of contacts with China corporates and government entities. 

Osbert has received votes from top-tier institutional investors and has been a highly-ranked transport and infrastructure analyst in the Asiamoney, Institutional Investors and Greenwich surveys. In addition to his extensive experience with international investment banks including RBS, ABN AMRO (both served as Shanghai Chief Representative), Paribas Asia Equity, Maybank Kim Eng and DBS Securities, he has been a senior analyst with Moody’s Investors Service with focus on ratings of China infrastructure and related LGFV issuers. He has also worked in the area of strategic development at Sun Hung Kai Properties Limited. 

Osbert holds a BBA from the Chinese University of Hong Kong, an MBA from the University of Texas at Austin and a MSSc in Applied Psychology from the City University of Hong Kong. He was accredited with the CFA charter in 1997, and is a member of both British Psychological Society and Hong Kong Psychological Society.

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Equity Bottom-Up

Avic Shenyang Aircraft / Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/avic-shenyang-aircraft-co-ltd" target="_blank" data-smartkarma-citation="entities:12150:1" rel="noopener">Avic Shenyang Aircraft (600760 CH)</a> has a very solid 3Q21 with recurring profit up by 61.5% YoY and grew 81.8% for 9M21. The result was underpinned by encouraging revenue growth, steady margin performance, higher interest income and turnaround in investment income. The surge in contract liabilities and prepayment at end-9M21 also suggested good order momentum and production pace in this year.</p><p>We believe AVIC Shenyang will benefit from China's demand for combat aircraft, driven by both upgrade demand and the need to equip the country's increase in aircraft carrier fleet. The sustained tension across the Taiwan Strait and President Xi's recent signing of <a href="https://baijiahao.baidu.com/s?id=1715262162429714903&amp;wfr=spider&amp;for=pc" target="_blank" rel="noopener">"Military equipment ordering regulations"</a> should be positive to sentiment on the stock. Despite a 40.3% rally YTD, its valuation remains not too stretched when compared with a basket of A-share aerospace and defense stocks.</p>

Avic Shenyang Aircraft (600760 CH) has a very solid 3Q21 with recurring profit up by 61.5% YoY and grew 81.8% for 9M21. The result was underpinned by encouraging revenue growth, steady margin performance, higher interest income and turnaround in investment income. The surge in contract liabilities and prepayment at end-9M21 also suggested good order momentum and production pace in this year.We believe AVIC Shenyang will benefit from China's demand for combat aircraft, driven by both upgrade demand and the need to equip the country's increase in aircraft carrier fleet. The sustained tension across the Taiwan Strait and President Xi's recent signing of "Military equipment ordering regulations" should be positive to sentiment on the stock. Despite a 40.3% rally YTD, its valuation remains not too stretched when compared with a basket of A-share aerospace and defense stocks.

China Avionics Systems Co., Ltd. (600372 CH)

AVIC Shenyang (600760 CH): Heating Up on China's Combat Aircraft Demand