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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Equity Bottom-Up

Cosco Shipping Energy Transportation Co. Ltd. (H) / Equity Bottom-Up

Cosco Shipping Energy Transportation Co. Ltd. (H) (1138 HK)

Cosco Shipping Energy Transportation Co. Ltd. (H)

<p><a href="https://www.smartkarma.com/entities/china-shipping-development-co-ltd" target="_blank" data-smartkarma-citation="entities:646:1" rel="noopener">Cosco Shipping Energy Transportation Co. Ltd. (H) (1138 HK)</a>, CSET, experienced a 11% drop in its share price in the last five trading days on the back of a loss-making 4Q19 due to OFAC sanction and the weakness of overall China market on concerns of the spread of Coronavirus. These are valid issues in the near term, but the stock's valuation has now coming to a very undemanding level to position for the positive medium-term structural trend, in our view.</p><p>At 0.43x P/B multiple, which is near the historical low of 0.36x, we believe CSET's depressed share price has reflected all major negative concerns. While the share price is expected to face heavy selling pressure after the Chinese New Year holidays on the Coronavirus and this pressure will likely to remain in the near term, we believe the risk-reward payoff for CSET is getting increasingly attractive. </p>

Cosco Shipping Energy Transportation Co. Ltd. (H) (1138 HK), CSET, experienced a 11% drop in its share price in the last five trading days on the back of a loss-making 4Q19 due to OFAC sanction and the weakness of overall China market on concerns of the spread of Coronavirus. These are valid issues in the near term, but the stock's valuation has now coming to a very undemanding level to position for the positive medium-term structural trend, in our view.At 0.43x P/B multiple, which is near the historical low of 0.36x, we believe CSET's depressed share price has reflected all major negative concerns. While the share price is expected to face heavy selling pressure after the Chinese New Year holidays on the Coronavirus and this pressure will likely to remain in the near term, we believe the risk-reward payoff for CSET is getting increasingly attractive. 

COSCO Shipping Energy (1138 HK): 10-Year Low Valuation Reflected Worst Case Scenario