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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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> announced two significant acquisitions over the weekend with a total consideration of RMB3.3bn. These transactions include the acquisition of <a href="https://www.klgeurope.com/en/" target="_blank" rel="noopener">KLG Europe</a> and some assets of Keppel Logistics in mainland China and Hong Kong (<a href="http://www.keppellogfoshan.com.cn/Index_en.aspx" target="_blank" rel="noopener">Keppel Foshan</a> and <a href="http://www.keppellogfoshan.com.cn/kepsite/en/hongkong.htm" target="_blank" rel="noopener">Keppel Hong Kong</a>).These are the largest acquisitions that Sinotrans made in recent years. Although the aggregate considerations are not cheap relative to the assets' earnings, the purchases will enhance Sinotrans' presence in Europe and South China, which are strategically significant to the company.Given that Sinotrans is currently in a net cash position, we estimate that the deals are mildly EPS enhancing, and consider the transactions positive in the long term.

Sinotrans Limited H (598 HK) announced two significant acquisitions over the weekend with a total consideration of RMB3.3bn. These transactions include the acquisition of KLG Europe and some assets of Keppel Logistics in mainland China and Hong Kong (Keppel Foshan and Keppel Hong Kong).These are the largest acquisitions that Sinotrans made in recent years. Although the aggregate considerations are not cheap relative to the assets' earnings, the purchases will enhance Sinotrans' presence in Europe and South China, which are strategically significant to the company.Given that Sinotrans is currently in a net cash position, we estimate that the deals are mildly EPS enhancing, and consider the transactions positive in the long term.

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