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.

Sinotrans Limited (598 HK) : Acquisition Spree Expands Global and Domestic Networks

Sinotrans Limited (598 HK): Is the Market Too Bearish?

Sinotrans Limited (598 HK): Good Momentum of National Express Volume in May Is Positive

Sinotrans Limited (598 HK): A Remarkable First Half Despite Trade War Headwinds

Equity Bottom-Up

<p>Excluding fair value gains in last year, the 3Q19 result of <a href="https://www.smartkarma.com/entities/sinotrans-limited-h" target="_blank" data-smartkarma-citation="entities:1321:1" rel="noopener">Sinotrans Limited H (598 HK)</a> showed a healthy profit growth of 13% YoY despite the ongoing US-China Trade War which affected China’s overall trade volume. We also see very solid YoY growth in the contribution from associates and JVs - very likely to be from the express joint venture DHL-Sinotrans.</p><p>The Trade War and the back-and-forth negotiations have negatively affected the sentiment for Sinotrans, which has underperformed the HSCEI by 10ppt in 3Q19. With continued positive earnings performance, its depressed valuation of 0.55x P/B is unjustified, in our view.</p>

Excluding fair value gains in last year, the 3Q19 result of Sinotrans Limited H (598 HK) showed a healthy profit growth of 13% YoY despite the ongoing US-China Trade War which affected China’s overall trade volume. We also see very solid YoY growth in the contribution from associates and JVs - very likely to be from the express joint venture DHL-Sinotrans.The Trade War and the back-and-forth negotiations have negatively affected the sentiment for Sinotrans, which has underperformed the HSCEI by 10ppt in 3Q19. With continued positive earnings performance, its depressed valuation of 0.55x P/B is unjustified, in our view.

Sinotrans (598 HK): 3Q19 Result Continued to Suggest Healthy Underlying Performance