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.

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Sinotrans - Valuable Exposure to China's ECommerce Boom and Logistics Demand

Equity Bottom-Up

<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> delivered a remarkable 1H2019 result despite heavy pressure from the US-China Trade War and the overall economic slowdown. Its recurring profit rose 27.8% YoY to RMB1.308bn, with growth being achieved on most important business segments, except for the weakness in the international express business.Although there are concerns that the Trade War will erode Sinotrans' business volume, the 1H2019 result clearly showed that this is overplayed, as most business divisions managed to record positive volume trend.The stock now trades on just 0.6x 12-month forward P/B, which is almost 2 standard deviations below its five-year average. We consider the interim result a support to our investment thesis, and stay positive on this counter-intuitive play amid the Trade War.

Sinotrans Limited H (598 HK) delivered a remarkable 1H2019 result despite heavy pressure from the US-China Trade War and the overall economic slowdown. Its recurring profit rose 27.8% YoY to RMB1.308bn, with growth being achieved on most important business segments, except for the weakness in the international express business.Although there are concerns that the Trade War will erode Sinotrans' business volume, the 1H2019 result clearly showed that this is overplayed, as most business divisions managed to record positive volume trend.The stock now trades on just 0.6x 12-month forward P/B, which is almost 2 standard deviations below its five-year average. We consider the interim result a support to our investment thesis, and stay positive on this counter-intuitive play amid the Trade War.

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