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.

China Construction Machinery: Good to the Last Drop

China Comm Const (1800 HK): Positive Takeaways from Call with Company

Lonking (3339 HK): Company Suggests Robust Outlook for 2021

China Comm Const (1800 HK): 3Q20 - A Return to YoY Growth

China Comm Const (1800 HK): Every Dog Has Its Day

China Comm Const (1800 HK): Key Takeaways from Post-1H20 Result Investor Call

Equity Bottom-Up

China Communications Construction / Equity Bottom-Up

China Communications Construction (1800 HK)

<p>With the conclusion of the deletion from MSCI global indices on 5 Jan, we believe focus for <a href="https://www.smartkarma.com/entities/china-communications-construction-co-ltd" target="_blank" data-smartkarma-citation="entities:265:1" rel="noopener">China Communications Construction (1800 HK)</a> should shift back to its fundamentals. In our view, strong recovery in toll road concession businesses, solid new contract momentum and conclusion of its first public infrastructure REIT issuance are the positive drivers and catalysts in this year. </p><p>CCCC's H-share has underperformed A-share sharply since mid-Nov, with its discount widened to 51% from 43%, and it is now the time to stage a reversal. Despite its rebound in last two days, CCCC still trades on just 0.2x 12-month forward P/B multiple. This implies that the market considers as much as Rmb216bn, or 17%, of its total assets are worthless, and we think this is not justified. Its current P/B is also ridiculously low at 2 SD below historical average. </p>

With the conclusion of the deletion from MSCI global indices on 5 Jan, we believe focus for China Communications Construction (1800 HK) should shift back to its fundamentals. In our view, strong recovery in toll road concession businesses, solid new contract momentum and conclusion of its first public infrastructure REIT issuance are the positive drivers and catalysts in this year. CCCC's H-share has underperformed A-share sharply since mid-Nov, with its discount widened to 51% from 43%, and it is now the time to stage a reversal. Despite its rebound in last two days, CCCC still trades on just 0.2x 12-month forward P/B multiple. This implies that the market considers as much as Rmb216bn, or 17%, of its total assets are worthless, and we think this is not justified. Its current P/B is also ridiculously low at 2 SD below historical average. 

China Railway Construction Corp (1186 HK)

China Communications Construction

China Comm Const (1800 HK): Brewing Bull