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 Infrastructure: Record Special Purpose Bonds Issuance to Drive Construction Sectors in 2H20

China Onshore Credit: Bravo! 2Q20 Default Figure Better than Expected

Lonking (3339 HK): Position for China's Post-Outbreak FAI Drive?

China's Rmb25trn Infrastructure Spending: Bond Issuance, Infrastructure Machinery and Construction

Lonking (3339 HK): Industry Momentum Has Positive Implications

Lonking (3339 HK): Wow! It Is Yielding 11.6%!!!

Thematic (Sector/Industry)

China Machinery / Thematic (Sector/Industry)

XCMG Construction Machinery A (000425 CH)

<p>Total sales of excavators rose 59.9% YoY in Apr, suggesting a very strong pick up in momentum against the 11.6% growth in March. The solid rebound came on the back of the announced price increase in the month. Companies are also seeing production being immediately absorbed by customers, compared with an inventory of more than half month in a normal year.</p><p>In our view, the key beneficiaries of the industry recovery are <a href="https://www.smartkarma.com/entities/sany-heavy-industry-co-ltd" target="_blank" data-smartkarma-citation="entities:20183:1" rel="noopener">Sany Heavy Industry Co., (600031 CH)</a> and <a href="https://www.smartkarma.com/entities/xcmg-construction-machin-a" target="_blank" data-smartkarma-citation="entities:426:1" rel="noopener">Xcmg Construction Machin A (000425 CH)</a> which are the leaders for the excavator market. Meanwhile, with excavator being the second largest contributor to revenue and profit, <a href="https://www.smartkarma.com/entities/lonking-holdings-ltd" target="_blank" data-smartkarma-citation="entities:3944:1" rel="noopener">Lonking Holdings (3339 HK)</a> will also be a major beneficiary. </p>

Total sales of excavators rose 59.9% YoY in Apr, suggesting a very strong pick up in momentum against the 11.6% growth in March. The solid rebound came on the back of the announced price increase in the month. Companies are also seeing production being immediately absorbed by customers, compared with an inventory of more than half month in a normal year.In our view, the key beneficiaries of the industry recovery are Sany Heavy Industry Co., (600031 CH) and Xcmg Construction Machin A (000425 CH) which are the leaders for the excavator market. Meanwhile, with excavator being the second largest contributor to revenue and profit, Lonking Holdings (3339 HK) will also be a major beneficiary. 

China Construction Machinery: April Excavator Sales up 59.9%