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): Positive Picture for 2020

SITC International (1308 HK): Latest Update Post COVID-19 Outbreak

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

SITC International (1308 HK): Creator of Shareholder Value

Equity Bottom-Up

<p>The 3Q19 operating statistics announced by <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> showed that the average freight rate growth has moderated in the quarter. However, this is offset by a slight pick-up in overall container volume, which continued to fuel a healthy rise in revenue for the quarter.</p><p>We expect the retreat in average bunker price in 3Q19 is one of the reasons for the lower freight rate, as surcharges may have adjusted marginally. Also, change in volume mix may also contribute to the pullback. We do not expect the trend to affect the profitability of the company. In fact, with the bunker price dropped by almost 9% YoY in 2H19, SITC's margin will potentially be better when compared with last year. </p>

The 3Q19 operating statistics announced by SITC International (1308 HK) showed that the average freight rate growth has moderated in the quarter. However, this is offset by a slight pick-up in overall container volume, which continued to fuel a healthy rise in revenue for the quarter.We expect the retreat in average bunker price in 3Q19 is one of the reasons for the lower freight rate, as surcharges may have adjusted marginally. Also, change in volume mix may also contribute to the pullback. We do not expect the trend to affect the profitability of the company. In fact, with the bunker price dropped by almost 9% YoY in 2H19, SITC's margin will potentially be better when compared with last year. 

SITC International (1308 HK): Moderating Freight Rate in 3Q19 Not a Concern