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.

China Comm Const (1800 HK): Key Takeaways from Post-FY20 Result Call

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China Comm Const (1800 HK): 3Q20 - A Return to YoY Growth

China Comm Const (1800 HK): Key Takeaways from Post-1H20 Result Investor Call

Equity Bottom-Up

China Communications Construction / Equity Bottom-Up

China Communications Construction (1800 HK)

<p>We had a call with <a href="https://www.smartkarma.com/entities/china-communications-construction-co-ltd" target="_blank" data-smartkarma-citation="entities:265:1" rel="noopener">China Communications Construction (1800 HK)</a> with positive takeaways. We see management taking action to address the issues of high gearing and slow cash payback, good progress in infrastructure REIT issuance, potential improvement in profitability and limited impact of the Sino-US tension. The company is also exploring various options to support its share prices.</p><p>After a 13% rebound since the exclusion from MSCI global indexes, there still exists significant upside potential for CCCC, in our view. Its 12-month forward P/B multiple of 0.21x remains cheap. With improvement in profitability and a narrowing in the H-A discount, we expect re-rating to continue - a return to 1SD below historical average P/B will imply 66% upside.  </p>

We had a call with China Communications Construction (1800 HK) with positive takeaways. We see management taking action to address the issues of high gearing and slow cash payback, good progress in infrastructure REIT issuance, potential improvement in profitability and limited impact of the Sino-US tension. The company is also exploring various options to support its share prices.After a 13% rebound since the exclusion from MSCI global indexes, there still exists significant upside potential for CCCC, in our view. Its 12-month forward P/B multiple of 0.21x remains cheap. With improvement in profitability and a narrowing in the H-A discount, we expect re-rating to continue - a return to 1SD below historical average P/B will imply 66% upside.  

China Railway Construction Corp (1186 HK)

China Comm Const (1800 HK): Positive Takeaways from Call with Company