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.

Lonking (3339 HK): Is There a Slowdown in the Industry? Our Answer Is No.

Lonking (3339 HK): Streaming Ahead Despite Turbulence

China Construction Machinery: Better Trajectory for 2H21

Lonking (3339 HK): Company Suggests Robust Outlook for 2021

Lonking (3339 HK): Rock Solid at 12.2% FY20 Dividend Yield, Still with Lots of Net Cash

Lonking (3339 HK): Back in Again Supported by Improved Risk-Return Payoff

China Construction Machinery: Good to the Last Drop

Equity Bottom-Up

<p>Demand for construction machinery stayed very resilient in Mar, with 60% YoY growth for industry excavator sales and 53% growth for wheel loader. These figures concluded an extremely solid 1Q21 in the history of the industry, as sales was up 85% and 60.7% for the quarter. We believe <a href="https://www.smartkarma.com/entities/lonking-holdings-ltd" target="_blank" data-smartkarma-citation="entities:3944:1" rel="noopener">Lonking Holdings (3339 HK)</a> is a direct beneficiary of the good momentum.</p><p>Initial figures from Lonking suggested that the company is tracking closely the industry sales for excavator but outperformed on wheel loader sales significantly in 1Q21. This reversed the trend of underperformance in last year, and the market should take this positively. In our view, at 5.3x PER, 1.1x P/B and 11.3% dividend yield for FY21, together with an ROE of 21.5% and net cash of HK$0.90/share, who can afford not to take a look on Lonking?</p>

Demand for construction machinery stayed very resilient in Mar, with 60% YoY growth for industry excavator sales and 53% growth for wheel loader. These figures concluded an extremely solid 1Q21 in the history of the industry, as sales was up 85% and 60.7% for the quarter. We believe Lonking Holdings (3339 HK) is a direct beneficiary of the good momentum.Initial figures from Lonking suggested that the company is tracking closely the industry sales for excavator but outperformed on wheel loader sales significantly in 1Q21. This reversed the trend of underperformance in last year, and the market should take this positively. In our view, at 5.3x PER, 1.1x P/B and 11.3% dividend yield for FY21, together with an ROE of 21.5% and net cash of HK$0.90/share, who can afford not to take a look on Lonking?

XCMG Construction Machinery A (000425 CH)

Lonking (3339 HK): 1Q21 Industry Figures Blown Through the Roof