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): 1Q20 Showed Exceptional Resilience

China Transportation: In-Depth Look into April Export Figures and Readthrough to Sea and Air Freight

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

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

SITC International (1308 HK): Creator of Shareholder Value

SITC International (1308 HK): Positive Picture for 2020

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

Equity Bottom-Up

<p>With an 11.4% YoY profit growth, <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 FY19 result did not disappoint us.  Moreover, it raised its final DPS by 3.8% even after the announcement of a special DPS in Dec-2019, making full-year dividend payout ratio at 117%, suggesting confidence in its core competence and operating outlook. Its volume has gradually resumed in Mar and freight rate remained solid despite Covid-19 outbreak.</p><p>We stay positive on SITC though we expect pressure in FY20. This is a great company generating ~20% ROE, with low gearing and high dividend payout, exhibiting good corporate governance and focusing on a growing niche market segment. We see any pull-back in share price an excellent opportunity to accumulate.   </p>

With an 11.4% YoY profit growth, SITC International (1308 HK)'s FY19 result did not disappoint us.  Moreover, it raised its final DPS by 3.8% even after the announcement of a special DPS in Dec-2019, making full-year dividend payout ratio at 117%, suggesting confidence in its core competence and operating outlook. Its volume has gradually resumed in Mar and freight rate remained solid despite Covid-19 outbreak.We stay positive on SITC though we expect pressure in FY20. This is a great company generating ~20% ROE, with low gearing and high dividend payout, exhibiting good corporate governance and focusing on a growing niche market segment. We see any pull-back in share price an excellent opportunity to accumulate.   

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