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.

China Logistics: Key Beneficiaries of China's Greater Bay Area Postal and Express Development

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

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Equity Bottom-Up

<p>We saw the good industry datapoints including the 14.9% YoY export growth (in Rmb terms) in Nov and the sustained increase in the China-US and China-Europe freight rates provide us encouraging indicators for the outlook of <a href="https://www.smartkarma.com/entities/sinotrans-limited-h" target="_blank" data-smartkarma-citation="entities:1321:1" rel="noopener">Sinotrans (598 HK)</a>. Meanwhile, the 33% increase in industry international express volume also bode well for its express JV DHL-Sinotrans which contributed 40% of its pre-tax profit. </p><p>The good volume momentum, together with potentially higher margins, will drive a very solid 4Q20 for the company. Despite the sharp rally since Oct, Sinotrans is still surprisingly cheap at 0.58x 12-month P/B, well below the average of 0.7x since 2013. We stay positive and believe the recent share price consolidation is opportunity to add to position.  </p>

We saw the good industry datapoints including the 14.9% YoY export growth (in Rmb terms) in Nov and the sustained increase in the China-US and China-Europe freight rates provide us encouraging indicators for the outlook of Sinotrans (598 HK). Meanwhile, the 33% increase in industry international express volume also bode well for its express JV DHL-Sinotrans which contributed 40% of its pre-tax profit. The good volume momentum, together with potentially higher margins, will drive a very solid 4Q20 for the company. Despite the sharp rally since Oct, Sinotrans is still surprisingly cheap at 0.58x 12-month P/B, well below the average of 0.7x since 2013. We stay positive and believe the recent share price consolidation is opportunity to add to position.  

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