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.

COSCO Shipping Energy (1138 HK): Delivered as Promised

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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/646" target="_blank" data-smartkarma-citation="entities:646:1">Cosco Shipping Energy Transportation Co. Ltd. (H) (1138 HK)</a> (CSE) is entering a stage of continued earnings recovery and we expect such momentum will remain solid over the next two years. This is driven by the recovery in its international oil transportation segment, the increase in its LNG fleet size and the growth in its domestic oil transportation business.  </p><p>Despite some 30% rebound in share price YTD, the stock's valuation (P/B) remains inexcessive at 0.6x. Weak earnings over the last year has been taken negatively by the market. With improving earnings outlook for the next two years, which we expect will lead to better ROEs, we believe a re-rating to 0.7-0.8x P/B over the 12-18 months is likely. </p>

Cosco Shipping Energy Transportation Co. Ltd. (H) (1138 HK) (CSE) is entering a stage of continued earnings recovery and we expect such momentum will remain solid over the next two years. This is driven by the recovery in its international oil transportation segment, the increase in its LNG fleet size and the growth in its domestic oil transportation business.  Despite some 30% rebound in share price YTD, the stock's valuation (P/B) remains inexcessive at 0.6x. Weak earnings over the last year has been taken negatively by the market. With improving earnings outlook for the next two years, which we expect will lead to better ROEs, we believe a re-rating to 0.7-0.8x P/B over the 12-18 months is likely. 

COSCO Shipping Energy (1138 HK): Strength of Turning Around