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/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> recorded a 62% rally over the last 12 trading days on the back of the spike in VLCC rate. We believe that as the stock now moves closer to P/B multiple of +1SD above historical average, its valuation has already reflected a lot of good news, and it is time to take some money off the table.</p><p>We believe the pop in VLCC rate cannot sustain for long and CSET may not be able to fully realize the rally in rates. Additionally, the unwind of excess vessel supply holding up as storage and the weaker oil demand outlook over the next 12-18 months are likely to return rate back to more normalised levels. While the long-term prospects of CSET remains intact, the Covid-19 outbreak has somewhat delayed the timing for the structurally positive story. </p>

Cosco Shipping Energy Transportation Co. Ltd. (H) (1138 HK) recorded a 62% rally over the last 12 trading days on the back of the spike in VLCC rate. We believe that as the stock now moves closer to P/B multiple of +1SD above historical average, its valuation has already reflected a lot of good news, and it is time to take some money off the table.We believe the pop in VLCC rate cannot sustain for long and CSET may not be able to fully realize the rally in rates. Additionally, the unwind of excess vessel supply holding up as storage and the weaker oil demand outlook over the next 12-18 months are likely to return rate back to more normalised levels. While the long-term prospects of CSET remains intact, the Covid-19 outbreak has somewhat delayed the timing for the structurally positive story. 

COSCO Shipping Energy (1138 HK): Time to Take Some Money off the Table