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 Everbright Environment (257 HK): Management Guidance Hinting Sustained Growth into FY21

Canvest Env (1381 HK): Setting a Positive Tone for Further Strength

China Everbright Greentech (1257 HK): Updates from Post-1H21 Call

China Everbright Environment (257 HK): Compelling Story yet to Fully Appreciate

China Everbright Intl (257 HK): Solid 1H20 to Extend into 2H20

China Everbright Greentech (1257 HK): 1H20 Dragged by Pandemic but Should Revive in 2H20

Conch Venture (586 HK): The Best of Both Worlds

Canvest Env (1381 HK): Positive Takeaways from Post-1H20 Result Investor Call

Equity Bottom-Up

China Everbright Greentech / Equity Bottom-Up

<p>The weaker-than-expected FY20 result of <a href="https://www.smartkarma.com/entities/china-everbright-greentech-0377b31c-5401-466f-987e-9a176b05fb52" target="_blank" data-smartkarma-citation="entities:24085:1" rel="noopener">China Everbright Greentech (1257 HK)</a> is primarily due to a one-time impairment charge on its intangible assets at the biomass segment. Without this factor, its net profit would have increased by 2.7%, and EBITDA margin expanded by 2.3pp YoY.<a href="https://www.smartkarma.com/entities/china-everbright-ltd" target="_blank" data-smartkarma-citation="entities:167:1" rel="noopener"></a></p><p>We see better earnings outlook for FY21, with a projected EPS growth of 15%, driven by increase operational income from new projects recently/to be completed, potentially more national subsidy, improvement in margin and lower finance cost on reduced leverage. The plan to securitise its national subsidy through asset-backed securities (ABN) will be positive to its financial position. We still think CEGT inexpensive, but prefer its parent <a href="https://www.smartkarma.com/entities/china-everbright-environment-group-limited" target="_blank" data-smartkarma-citation="entities:15946:1" rel="noopener">China Everbright Environment (257 HK)</a> due to its more diversified project mix.</p>

The weaker-than-expected FY20 result of China Everbright Greentech (1257 HK) is primarily due to a one-time impairment charge on its intangible assets at the biomass segment. Without this factor, its net profit would have increased by 2.7%, and EBITDA margin expanded by 2.3pp YoY.We see better earnings outlook for FY21, with a projected EPS growth of 15%, driven by increase operational income from new projects recently/to be completed, potentially more national subsidy, improvement in margin and lower finance cost on reduced leverage. The plan to securitise its national subsidy through asset-backed securities (ABN) will be positive to its financial position. We still think CEGT inexpensive, but prefer its parent China Everbright Environment (257 HK) due to its more diversified project mix.

Canvest Environmental Protection Group (1381 HK)

Zhejiang Weiming Environment Protection Co Ltd (603568 CH)

Zhejiang Weiming Environment Protection Co Ltd

China Everbright Greentech (1257 HK): Key Takeaways from Post-FY20 Result Call