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 (598 HK): From Strength to Strength

Sinotrans (598 HK): Record FY21, Takeaways from Post-Result Call

Sinotrans (598 HK): Another Very Promising Quarter

Sinotrans (598 HK): Encouraging Industry Datapoints Bode Well for Outlook

Sinotrans (598 HK): Positive Profit Alert for 1H21

Sinotrans (598 HK): Good 1Q21, Outlook Stays Very Decent

Sinotrans (598 HK): Quick Take on the Good Underlying 4Q20 and Positive Profit Alert for 1Q21

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/sinotrans-limited-h" target="_blank" data-smartkarma-citation="entities:1321:1" rel="noopener">Sinotrans (598 HK)</a> delivered another set of good result with the report of a 77.9% YoY increase in net profit for 1H21, which is at the higher end of the indicated range in its positive profit alert. For 2Q21 only, recurring profit also grew a healthy 17.4% YoY and 36.5% QoQ, with the international express JV DHL-Sinotrans witnessing the best momentum. Meanwhile, financial position remained solid with a light gearing of just 10.5%.</p><p>We expect a slower 2H21, partly due to a higher base in last year. However, we still see FY21 earnings to surge 45% YoY, thanks to China's sustained trade growth, new customer gains, network expansion, continued product enhancement and e-commerce market growth. Our projected ROE of 12.2% for FY21 well suggested that its 0.51x P/B inexpensive. This argument is further supported by a PER of 4.5x only and an attractive dividend yield of 7.0%. </p>

Sinotrans (598 HK) delivered another set of good result with the report of a 77.9% YoY increase in net profit for 1H21, which is at the higher end of the indicated range in its positive profit alert. For 2Q21 only, recurring profit also grew a healthy 17.4% YoY and 36.5% QoQ, with the international express JV DHL-Sinotrans witnessing the best momentum. Meanwhile, financial position remained solid with a light gearing of just 10.5%.We expect a slower 2H21, partly due to a higher base in last year. However, we still see FY21 earnings to surge 45% YoY, thanks to China's sustained trade growth, new customer gains, network expansion, continued product enhancement and e-commerce market growth. Our projected ROE of 12.2% for FY21 well suggested that its 0.51x P/B inexpensive. This argument is further supported by a PER of 4.5x only and an attractive dividend yield of 7.0%. 

Sinotrans

Sinotrans (598 HK): A Rock Solid 1H21