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.

SITC International (1308 HK): Well, a Very Quality Company but Too Much Too Fast

Our Three Best Trades in 2020! and How Will We Position for 2021?

China Construction Machinery: Good to the Last Drop

SITC International (1308 HK): 1H20 - Continuing the Excellent Trajectory

SITC International (1308 HK): Positive Picture for 2020

SITC International (1308 HK): Spectacular Show in FY19, Fundamentals Stay Solid

SITC International (1308 HK): 1Q20 Showed Exceptional Resilience

Equity Bottom-Up

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<p><a href="https://www.smartkarma.com/entities/sitc-international-holdings" target="_blank" data-smartkarma-citation="entities:15301:1" rel="noopener">SITC International (1308 HK)</a>'s operating statistics showed that 3Q20 achieved the highest quarterly revenue and volume growth since 1Q19, and we believe this was built on solid cargo demand and its niche presence in the booming intra-Asia market. While average freight rates came down by 6.3% in 3Q20 and 3% in 9M20, this is more than offset by the 36.5% decline in average bunker price YTD, and should lead to good margin expansion in this year.</p>
<p>The strong 3Q20 operating data suggested that SITC is on track to reach a record profit in FY20. Even better, we expect ROE for the next two years to stay at levels of over 25% while maintaining a net cash position. Despite having rallied by 41.5% YTD, we continue to like its quality management, strong intra-Asia franchise, solid financial position and willingness to share success with shareholders (average dividend payout ratio of 82% in the last four years). </p>
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SITC International (1308 HK)'s operating statistics showed that 3Q20 achieved the highest quarterly revenue and volume growth since 1Q19, and we believe this was built on solid cargo demand and its niche presence in the booming intra-Asia market. While average freight rates came down by 6.3% in 3Q20 and 3% in 9M20, this is more than offset by the 36.5% decline in average bunker price YTD, and should lead to good margin expansion in this year.
The strong 3Q20 operating data suggested that SITC is on track to reach a record profit in FY20. Even better, we expect ROE for the next two years to stay at levels of over 25% while maintaining a net cash position. Despite having rallied by 41.5% YTD, we continue to like its quality management, strong intra-Asia franchise, solid financial position and willingness to share success with shareholders (average dividend payout ratio of 82% in the last four years). 


SITC International (1308 HK): Impressive 3Q20 to Support a Record Year in FY20