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>We think it is time to revisit <a href="https://www.smartkarma.com/entities/cosco-shipping-energy-tran-h" target="_blank" data-smartkarma-citation="entities:646:1" rel="noopener">Cosco Shipping Energy Transportation Co. Ltd. (H) (1138 HK)</a> (CSET), with its share price off sharply since we published the Insight <a href="https://www.smartkarma.com/insights/cosco-shipping-energy-1138-hk-time-to-take-some-money-off-the-table" target="_blank" data-smartkarma-citation="insights:38179" rel="noopener">COSCO Shipping Energy (1138 HK): Time to Take Some Money off the Table</a> in Apr. The stock is now back to 0.37x 12-month forward P/B, against a 10-year low of 0.36x. While the market has been focusing on the weak oil demand due to COVID-19, we see value. </p><p>We believe there are at least four positive factors for the VLCC market that we should not overlook: 1. release of pent-up travel demand; 2. rates are now at very low levels; 3. scrapping may pick up to reduce supply; and 4. small outstanding order book limits supply. In our view, picking up the stock at close to HK$3.00 level (currently HK$3.13) should position well for a potential 20-30% upside over the next 6 months. </p>

We think it is time to revisit Cosco Shipping Energy Transportation Co. Ltd. (H) (1138 HK) (CSET), with its share price off sharply since we published the Insight COSCO Shipping Energy (1138 HK): Time to Take Some Money off the Table in Apr. The stock is now back to 0.37x 12-month forward P/B, against a 10-year low of 0.36x. While the market has been focusing on the weak oil demand due to COVID-19, we see value. We believe there are at least four positive factors for the VLCC market that we should not overlook: 1. release of pent-up travel demand; 2. rates are now at very low levels; 3. scrapping may pick up to reduce supply; and 4. small outstanding order book limits supply. In our view, picking up the stock at close to HK$3.00 level (currently HK$3.13) should position well for a potential 20-30% upside over the next 6 months. 

COSCO Shipping Energy (1138 HK): It Looks Interesting Again Now!