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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Thematic (Sector/Industry)

China Consumer staples / Thematic (Sector/Industry)

Inner Mongolia Yili Industrial Group (A) (600887 CH)

<ul>
<li>We believe the recent underperformance of A-share consumer staples is unjustified. Their 1Q23 results are generally decent despite negative impact from the pandemic in Jan 2023.</li>
<li>Both <a href="https://www.smartkarma.com/entities/shanxi-xinghuacun-fen-wine-factory-co" target="_blank" data-smartkarma-citation="entities:9288:1" rel="noopener">Shanxi Xinghuacun Fen Wine Factory Co (600809 CH)</a> and <a href="https://www.smartkarma.com/entities/fu-jian-anjoy-foods-co-ltd" target="_blank" data-smartkarma-citation="entities:30110:1" rel="noopener">Fu Jian Anjoy Foods Co Ltd (603345 CH)</a> witnessed good revenue growth and margin expansion. </li>
<li>
<a href="https://www.smartkarma.com/entities/foshan-haitian-flavouring-food-co-ltd" target="_blank" data-smartkarma-citation="entities:15577:1" rel="noopener">Foshan Haitian Flavouring &amp; Food (603288 CH)</a> and <a href="https://www.smartkarma.com/entities/inner-mongolia-yili-indus-a" target="_blank" data-smartkarma-citation="entities:3220:1" rel="noopener">Inner Mongolia Yili Industrial Group (600887 CH)</a> have less satisfactory revenue and margin. Nonetheless, all four companies exhibited good operating cost control. </li>
</ul>


We believe the recent underperformance of A-share consumer staples is unjustified. Their 1Q23 results are generally decent despite negative impact from the pandemic in Jan 2023.
Both Shanxi Xinghuacun Fen Wine Factory Co (600809 CH) and Fu Jian Anjoy Foods Co Ltd (603345 CH) witnessed good revenue growth and margin expansion. 

Foshan Haitian Flavouring &amp; Food (603288 CH) and Inner Mongolia Yili Industrial Group (600887 CH) have less satisfactory revenue and margin. Nonetheless, all four companies exhibited good operating cost control. 


Shanxi Xinghuacun Fen Wine Factory Co (600809 CH)

Foshan Haitian Flavouring & Food (603288 CH)

China A-Share Consumer Staples: Depressed Share Price Cannot Reflect Decent Earnings