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): Streaming Ahead Despite Turbulence

China Construction Machinery: Better Trajectory for 2H21

Lonking (3339 HK): Disappointed Us with Worse-Than-Expected Margin in 1H21

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): 1Q21 Industry Figures Blown Through the Roof

Equity Bottom-Up

<p>We do not think a slower reported industry excavator and wheel loader sales growth in Apr is a concern to <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>. In fact, the slowdown to 2.5% and 9% YoY, respectively, compared with 85% and 67% YoY in 1Q21, is primarily driven by high base for comparison a year ago as pandemic restrained demand is released.</p><p>Relative to Apr 2019, the Apr 2021 unit sales still grew by impressive levels of 63.9% and 44.7%, respectively, providing us comfort on the health of underlying demand. Meanwhile, it is encouraging to see the sustained strength in export despite the continued negative impacts of COVID-19 outside China. We still expect a promising year for Lonking in FY21, and its valuation metrics remain very undemanding.  </p>

We do not think a slower reported industry excavator and wheel loader sales growth in Apr is a concern to Lonking Holdings (3339 HK). In fact, the slowdown to 2.5% and 9% YoY, respectively, compared with 85% and 67% YoY in 1Q21, is primarily driven by high base for comparison a year ago as pandemic restrained demand is released.Relative to Apr 2019, the Apr 2021 unit sales still grew by impressive levels of 63.9% and 44.7%, respectively, providing us comfort on the health of underlying demand. Meanwhile, it is encouraging to see the sustained strength in export despite the continued negative impacts of COVID-19 outside China. We still expect a promising year for Lonking in FY21, and its valuation metrics remain very undemanding.  

XCMG Construction Machinery A (000425 CH)

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