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.

CTG Duty Free Corp (601888 CH): 3Q20 Profit to Grow 141.9% YoY

China's Next Generation:  Diversifying Away from Tencent and Alibaba.

China Travel Intl Inv (308 HK): Recovery Play Overlooked by the Market + Privatisation Possibility

CTG Duty Free Corp (601888 CH): Good 2Q20 and Brighter Outlook for 2H20

China Tourism Gp Duty Free (601888 CH): Surge in Hainan Tourists & Duty Free Policy Implementation

China on the Ground: Hey, How's Your Golden Week?

CTG Duty Free Corp (601888 CH): Solid Jul Duty Free Sales in Hainan

Equity Bottom-Up

China Tourism Group Duty Free Corp Ltd / Equity Bottom-Up

China Tourism Group Duty Free Corp Ltd (601888 CH)

<p>During the Golden Week, average daily (for 1-7 Oct) duty free sales amounted to Rmb126m in Hainan, or an impressive 142.7% YoY growth. Since the start of the new Hainan duty free policy, average daily duty free sales has increased by 53%, suggesting a solid trend of improvement. Duty free sales in Hainan in 3Q20 has now equaled to its total sales in the island in 1H20. In our view, this solid performance will reflect positively on <a href="https://www.smartkarma.com/entities/china-tourism-group-duty-free-corp-ltd" target="_blank" data-smartkarma-citation="entities:12278:1" rel="noopener">China Tourism Group Duty Free Corp Ltd (601888 CH)</a>'s quarterly result to be announced in late-Oct, and will serve as a positive share price catalyst. </p><p>While rising competition is a valid concern, we believe any estimate of their impacts is overblown in the near term. The formation of a joint venture between <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a> and <a href="https://www.smartkarma.com/entities/dufry-ag" target="_blank" data-smartkarma-citation="entities:22344:1" rel="noopener">Dufry AG (DUFN SW)</a> to explore travel retail business opportunities in China is no difference. We believe CTG Duty Free's solid SOE status, unparalleled procurement and logistics capabilities, huge volume demand and excellent infrastructure are advantages difficult to challenge. </p>

During the Golden Week, average daily (for 1-7 Oct) duty free sales amounted to Rmb126m in Hainan, or an impressive 142.7% YoY growth. Since the start of the new Hainan duty free policy, average daily duty free sales has increased by 53%, suggesting a solid trend of improvement. Duty free sales in Hainan in 3Q20 has now equaled to its total sales in the island in 1H20. In our view, this solid performance will reflect positively on China Tourism Group Duty Free Corp Ltd (601888 CH)'s quarterly result to be announced in late-Oct, and will serve as a positive share price catalyst. While rising competition is a valid concern, we believe any estimate of their impacts is overblown in the near term. The formation of a joint venture between Alibaba Group (9988 HK) and Dufry AG (DUFN SW) to explore travel retail business opportunities in China is no difference. We believe CTG Duty Free's solid SOE status, unparalleled procurement and logistics capabilities, huge volume demand and excellent infrastructure are advantages difficult to challenge. 

CTG Duty Free Corp (601888 CH): Extending Solid Sales Track in the Golden Week