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): 1H20 Fuelled by Investment Income but Core Profit Down

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

China Construction Machinery: No Sign of Slowing Down

Lonking (3339 HK): Industry Momentum Has Positive Implications

China Infrastructure: Record Special Purpose Bonds Issuance to Drive Construction Sectors in 2H20

Lonking (3339 HK): Wow! It Is Yielding 11.6%!!!

China Infrastructure REITs: First Look on H-Share Toll Road Sector

China Construction Machinery: April Excavator Sales up 59.9%

Equity Bottom-Up

<p>Benefiting from China's escalated infrastructure spending, <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> witnessed a pickup in its key product sales in Jun (+60-80% YoY for excavator, road roller and forklift) as demand continued to recover. However, dragged by the weak start in this year, its 1H20 units sales are running behind that for the industry as reported by the CCMA, with wheel loader sales down 15% and excavator off 10%. </p><p>YTD, including a DPS of HK$0.25, the stock has returned 38.5%, outperforming key market indices by material margins. It now trades on 1.07x P/B, +1SD above the 5-year average. We believe this has significantly reflected its growth outlook, but we have concern on potential negative knee-jerk reaction from the market on its below-industry unit sales in 1H20. We suggest taking profit on this counter before the interim result release in late-Aug. Note that this is a short-term call and we would look to add back at lower level as it remains a key beneficiary of China's infrastructure investment. </p>

Benefiting from China's escalated infrastructure spending, Lonking Holdings (3339 HK) witnessed a pickup in its key product sales in Jun (+60-80% YoY for excavator, road roller and forklift) as demand continued to recover. However, dragged by the weak start in this year, its 1H20 units sales are running behind that for the industry as reported by the CCMA, with wheel loader sales down 15% and excavator off 10%. YTD, including a DPS of HK$0.25, the stock has returned 38.5%, outperforming key market indices by material margins. It now trades on 1.07x P/B, +1SD above the 5-year average. We believe this has significantly reflected its growth outlook, but we have concern on potential negative knee-jerk reaction from the market on its below-industry unit sales in 1H20. We suggest taking profit on this counter before the interim result release in late-Aug. Note that this is a short-term call and we would look to add back at lower level as it remains a key beneficiary of China's infrastructure investment. 

XCMG Construction Machinery A (000425 CH)

Lonking Holdings

Lonking (3339 HK): Trim on Prudence