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.

Guangzhou Baiyun Intl Airport (600004 CH): Further Narrowing the Gap

Guangzhou Baiyun Intl Airport (600004 CH): Facing Challenges in the Near Term

Chinese Airlines: China Southern (1055 HK) Seeing More Pressure than Air China (753 HK)

Guangzhou Baiyun Intl Airport (600004 CH): No Abatement in Growth Paces

Shanghai International Airport (600009 CH): Dragged by Unfavourable Duty Free Agreement

Guangzhou Baiyun Intl Airport (600004 CH): Concluding 2020 with a Sweet Note

Equity Bottom-Up

Guangzhou Baiyun International Airport / Equity Bottom-Up

Guangzhou Baiyun International Airport (600004 CH)

<p>Jan traffic for <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> does not look encouraging due to the local COVID-19 cases in China induced softening in domestic air travel demand. Aircraft movement and passenger throughput was down 23.6% and 43.8% YoY, respectively, reflecting various local governments' no cross-province travel recommendation and the distortion from a later Chinese New Year than 2020. Cargo throughput, however, holds up well.</p><p>We believe GBIA will fare better than its peers in Jan-Feb traffic, as southern China has not reported any local COVID-19 case. GBIA's share price has been hit by the spillover effect of the unfavourable duty free agreement signed by <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 (600009 CH)</a> which we think is unwarranted. On a cheaper 1.5x P/B, we see GBIA outperform SIAC in the near term given its more stable earnings mix and better profitability.<a href="https://www.smartkarma.com/entities/thai-airways-international" target="_blank" data-smartkarma-citation="entities:18317:1" rel="noopener"></a></p>

Jan traffic for Guangzhou Baiyun International Airport (600004 CH) does not look encouraging due to the local COVID-19 cases in China induced softening in domestic air travel demand. Aircraft movement and passenger throughput was down 23.6% and 43.8% YoY, respectively, reflecting various local governments' no cross-province travel recommendation and the distortion from a later Chinese New Year than 2020. Cargo throughput, however, holds up well.We believe GBIA will fare better than its peers in Jan-Feb traffic, as southern China has not reported any local COVID-19 case. GBIA's share price has been hit by the spillover effect of the unfavourable duty free agreement signed by Shanghai International Airport (600009 CH) which we think is unwarranted. On a cheaper 1.5x P/B, we see GBIA outperform SIAC in the near term given its more stable earnings mix and better profitability.

Shanghai International Airport (600009 CH)

Beijing Capital International Airport (BCIA) (694 HK)

Beijing Capital International Airport (BCIA)

Guangzhou Baiyun Intl Airport (600004 CH): On a Better Playing Field