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.

Chinese Airlines: Big Three Aug Passenger Traffic up 18% MoM

Shanghai International Airport (600009 CH): Best in Domestic and Cargo Traffic in Aug

Shanghai International Airport (600009 CH): Best Momentum Against Peers in Sep

Chinese Airlines: The Key Plays on Rmb Appreciation, with China Southern Being the Best

China Southern Airlines (1055 HK): Better Fortunes than Air China (753 HK)

China Southern Airlines (1055 HK): Better Summer Yields Have Kicked In

Chinese Airlines: China Southern the Clear Winner in 1H20 - A Must Read Comparison on the Big Three

Chinese Airlines: Jul Traffic Reflects Good Summer Strengths

Equity Bottom-Up

China Southern Airlines / Equity Bottom-Up

<p>In our view, <a href="https://www.smartkarma.com/entities/china-southern-airlines-co-ltd" target="_blank" data-smartkarma-citation="entities:1078:1" rel="noopener">China Southern Airlines (1055 HK)</a> will benefit from the mixed reform that it initiated on its logistics arm SA Logistics. SA Logistics will introduce 1-15 strategic shareholders to hold 49.5% stake and this should potentially improve its operating efficiency, provide financial resources for future expansion and generate cross-selling opportunities and synergy.</p><p>In 1H20, SA Logistics generated a profit of Rmb2.2bn, making it a key contributor to CSA (which recorded an Rmb8.2bn loss). Its 58% share of the total airfreight traffic in the Big Three Airlines is also an added strength. With the much smaller EA Logistics, the 45%-owned logistics arm of <a href="https://www.smartkarma.com/entities/china-eastern-airlines-co-h" target="_blank" data-smartkarma-citation="entities:1079:1" rel="noopener">China Eastern Airlines Co (H) (670 HK)</a>, currently seeking an IPO on the Shanghai Stock Exchange, we believe an IPO of SA Logistics is likely an ultimate aim and this should be positive to the H-share holders in particular. </p>

In our view, China Southern Airlines (1055 HK) will benefit from the mixed reform that it initiated on its logistics arm SA Logistics. SA Logistics will introduce 1-15 strategic shareholders to hold 49.5% stake and this should potentially improve its operating efficiency, provide financial resources for future expansion and generate cross-selling opportunities and synergy.In 1H20, SA Logistics generated a profit of Rmb2.2bn, making it a key contributor to CSA (which recorded an Rmb8.2bn loss). Its 58% share of the total airfreight traffic in the Big Three Airlines is also an added strength. With the much smaller EA Logistics, the 45%-owned logistics arm of China Eastern Airlines Co (H) (670 HK), currently seeking an IPO on the Shanghai Stock Exchange, we believe an IPO of SA Logistics is likely an ultimate aim and this should be positive to the H-share holders in particular. 

China Southern Airlines (1055 HK): Mixed Reform at Airfreight Logistics Is A Value Added Move