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.

CPMC Holdings (906 HK): Healthy 1H21 Despite Rising Cost, Highlights from Post-Result Call

CPMC (906 HK): Cost Pressure Appears Controlled While Demand Looks Firm

CPMC Holdings (906 HK): Short Term Tough but Long Term Story Intact

CPMC Holdings (906 HK): An Attractive Inexpensive Alternative Consumption Play

CPMC Holdings (906 HK): Sharp Rebound in 2H20; Management Stays Confident on FY21

Equity Bottom-Up

<p>While rising input cost is a challenge to <a href="https://www.smartkarma.com/entities/cpmc-holdings-ltd" target="_blank" data-smartkarma-citation="entities:10427:1" rel="noopener">CPMC Holdings (906 HK)</a>, we found the company able to manage the impact following our brief chat with management. Pricing mechanism will allow the company to shift part of the higher cost to customers, while the good volume growth YTD can also alleviate the cost pressure. In our view, there may not be significant negative impact on margin on combination of these two factors.</p><p>CPMC's new capacity plan has been moving ahead according to its schedule and this is expected to support stronger earnings for 2H21 as well. We believe CPMC's 0.85x 12-month forward P/B multiple (+1SD above historical average) can be justified by the escalating ROE since FY18 and the improvement in financial position.   </p>

While rising input cost is a challenge to CPMC Holdings (906 HK), we found the company able to manage the impact following our brief chat with management. Pricing mechanism will allow the company to shift part of the higher cost to customers, while the good volume growth YTD can also alleviate the cost pressure. In our view, there may not be significant negative impact on margin on combination of these two factors.CPMC's new capacity plan has been moving ahead according to its schedule and this is expected to support stronger earnings for 2H21 as well. We believe CPMC's 0.85x 12-month forward P/B multiple (+1SD above historical average) can be justified by the escalating ROE since FY18 and the improvement in financial position.   

CPMC Holdings (906 HK): Catch-Up with Company Indicates Cost Pressure Manageable