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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China Travel International Investment Hong Kong (308 HK)

China Travel International Investment Hong Kong

<p>We regard <a href="https://www.smartkarma.com/entities/china-travel-international-investment-hong-kong" target="_blank" data-smartkarma-citation="entities:3879:1" rel="noopener">China Travel International Investment Hong Kong (308 HK)</a> (CTII) as an alternative play on the encouraging economic growth outlook at Qianhai and Hengqin, given its presence in the nearby cities of Shenzhen and Zhuhai with theme parks and leisure resorts. We also see its profitability to sustain improvement in 2H21, after a very successful narrow-down of losses in 1H21.</p><p>CTII has made continuous efforts in optimising its assets by disposing of underperforming ones and acquiring value-enhancing ones. We expect such strategy will become fruitful in 2H21 with the removal of losses at Songshan Scenic Spot and travel agency and document business, and the addition of profit from Hangzhou New Century Senbo. CTII is a laggard in the tourism space with a cheap 0.4x 12-month forward P/B. Its net cash of HK$1.14/share now almost equals to its share price, meaning that the market is valuing its businesses at zero value - this is just overly conservative.  </p>

We regard China Travel International Investment Hong Kong (308 HK) (CTII) as an alternative play on the encouraging economic growth outlook at Qianhai and Hengqin, given its presence in the nearby cities of Shenzhen and Zhuhai with theme parks and leisure resorts. We also see its profitability to sustain improvement in 2H21, after a very successful narrow-down of losses in 1H21.CTII has made continuous efforts in optimising its assets by disposing of underperforming ones and acquiring value-enhancing ones. We expect such strategy will become fruitful in 2H21 with the removal of losses at Songshan Scenic Spot and travel agency and document business, and the addition of profit from Hangzhou New Century Senbo. CTII is a laggard in the tourism space with a cheap 0.4x 12-month forward P/B. Its net cash of HK$1.14/share now almost equals to its share price, meaning that the market is valuing its businesses at zero value - this is just overly conservative.  

China Travel Intl Inv (308 HK): Alternative Play on Supportive Policies to Qianhai and Hengqin?