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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HK Strategy: An Update on Playing the Future H IPOs of the As

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/air-china-ltd-h" target="_blank" data-smartkarma-citation="entities:8239:1" rel="noopener">Air China Ltd (H) (753 HK)</a> has disposed of a 1.61% stake in <a href="https://www.smartkarma.com/entities/cathay-pacific-airways-ltd" target="_blank" data-smartkarma-citation="entities:243:1" rel="noopener">Cathay Pacific Airways (293 HK)</a> at HK$12.22. After this, it will remain CX's second-largest shareholder.</li>
<li>Assuming an end-Mar completion of Qatar Airways' stake buyback, EPS will be enhanced by 1.7% and 3.7%, respectively, slightly lower than previously estimated.</li>
<li>Sustained uptrend in passenger traffic and load factor will support earnings. With 16% ROE for FY25-27, its 1.3x 12-month forward P/B is inexpensive.</li>
</ul>



Air China Ltd (H) (753 HK) has disposed of a 1.61% stake in Cathay Pacific Airways (293 HK) at HK$12.22. After this, it will remain CX's second-largest shareholder.
Assuming an end-Mar completion of Qatar Airways' stake buyback, EPS will be enhanced by 1.7% and 3.7%, respectively, slightly lower than previously estimated.
Sustained uptrend in passenger traffic and load factor will support earnings. With 16% ROE for FY25-27, its 1.3x 12-month forward P/B is inexpensive.


Cathay Pacific (293 HK): Stay Positive Despite Small Disposal by Air China