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): US Crude Export and China Import the Wild Cards?

Rmb Depreciation: An Angle for the Shipping Names?

COSCO Shipping Energy (1138 HK): Ahead of the Curve...but Too Much

COSCO Shipping Energy (1138 HK): Return Looks like Well Worth the Risk

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

COSCO Shipping Energy (1138 HK): More Downside than Upside at Current Level

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)

<ul>
<li>We think the FY21 massive losses of <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> is a non-event, as reflected by the muted share price reaction following the pre-announcement. </li>
<li>The huge impairment charges have positive implications as vessel values are reduced and earnings expectations have trimmed. This will lower the hurdle for CSET in the next two years. </li>
<li>Focus should be on potential upside factors including recovery of tanker rate, higher LNG transportation contribution, rebound in vessel price and disposal gains and higher cost management incentives. </li>
</ul>


We think the FY21 massive losses of Cosco Shipping Energy Transportation Co. Ltd. (H) (1138 HK) is a non-event, as reflected by the muted share price reaction following the pre-announcement. 
The huge impairment charges have positive implications as vessel values are reduced and earnings expectations have trimmed. This will lower the hurdle for CSET in the next two years. 
Focus should be on potential upside factors including recovery of tanker rate, higher LNG transportation contribution, rebound in vessel price and disposal gains and higher cost management incentives. 


COSCO Shipping Energy (1138 HK): When All the Bad News Is Out...