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.

Chinese Airlines and Airports: Huge Benefit from Resumption of Cross-Province Group Tourism

Shanghai International Airport (600009 CH): Slight Softening in Momentum in Jun

Chinese Airlines: China Southern's Got the Best Traffic Performance in 1H20

Shanghai International Airport (600009 CH): Strength in May and More Positive Factors Beyond

Chinese Airlines and Airports: Impact of Beijing Outbreak Seems to Have Bottomed

Guangzhou Baiyun Intl Airport (600004 CH): A Strong Show in Last Month

Chinese Airlines: The Strong Show for China Southern Continues

Equity Bottom-Up

Guangzhou Baiyun International Airport / Equity Bottom-Up

Guangzhou Baiyun International Airport (600004 CH)

<p><a href="https://www.smartkarma.com/entities/guangzhou-baiyun-international-airport" target="_blank" data-smartkarma-citation="entities:10819:1" rel="noopener">Guangzhou Baiyun International Airport (600004 CH)</a> posted an encouraging traffic performance in Jun, particularly for domestic aircraft movement (-10.8% YoY), which is almost back to the level in last Jun. Domestic passenger throughput declined just 27.9% YoY in the month, versus a 44.5% YoY drop in May, suggesting that the COVID-19 cases in Beijing have not had a significant impact on air travel except to/from the capital. Lastly, cargo and mail volume has already recovered to the Jun 2019 level, registering a YoY growth of 0.4% in Jun.</p><p>We expect GBIA's traffic recovery will continue to stay on course, and the rebound in 2H20 will increasingly rely on regional and international aircraft movement and overall passenger traffic recovery. In the near term, the resumptions of international flights are expected to benefit <a href="https://www.smartkarma.com/entities/shanghai-international-airport-co-ltd" target="_blank" data-smartkarma-citation="entities:6511:1" rel="noopener">Shanghai International Airport Co, Ltd. (600009 CH)</a> more than GBIA, however. Longer term, we expect GBIA to also reap the benefit. </p>

Guangzhou Baiyun International Airport (600004 CH) posted an encouraging traffic performance in Jun, particularly for domestic aircraft movement (-10.8% YoY), which is almost back to the level in last Jun. Domestic passenger throughput declined just 27.9% YoY in the month, versus a 44.5% YoY drop in May, suggesting that the COVID-19 cases in Beijing have not had a significant impact on air travel except to/from the capital. Lastly, cargo and mail volume has already recovered to the Jun 2019 level, registering a YoY growth of 0.4% in Jun.We expect GBIA's traffic recovery will continue to stay on course, and the rebound in 2H20 will increasingly rely on regional and international aircraft movement and overall passenger traffic recovery. In the near term, the resumptions of international flights are expected to benefit Shanghai International Airport Co, Ltd. (600009 CH) more than GBIA, however. Longer term, we expect GBIA to also reap the benefit. 

Shanghai International Airport (600009 CH)

Beijing Capital International Airport (BCIA) (694 HK)

Beijing Capital International Airport (BCIA)

Guangzhou Baiyun Intl Airport (600004 CH): Near Full YoY Recovery in Jun Domestic Aircraft Movement