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 Everbright Environment (257 HK): Compelling Story yet to Fully Appreciate

China Everbright Greentech (1257 HK): Key Takeaways from Post-FY20 Result Call

China Everbright Environment (257 HK): Management Guidance Hinting Sustained Growth into FY21

Canvest Env (1381 HK): Positive Takeaways from Post-1H20 Result Investor Call

China Environment Sector Deep Dive: Solid Waste Treatment

China Everbright Intl (257 HK): Solid 1H20 to Extend into 2H20

China Everbright Greentech (1257 HK): 1H20 Dragged by Pandemic but Should Revive in 2H20

Equity Bottom-Up

China Conch Venture Holdings / Equity Bottom-Up

<p>In our view, <a href="https://www.smartkarma.com/entities/china-conch-venture-holdings-ltd" target="_blank" data-smartkarma-citation="entities:19943:1" rel="noopener">China Conch Venture Holdings (586 HK)</a> is well positioned to capture the opportunities posed by both the rise in environment protection and increase in infrastructure investment in China. Its energy preservation and environmental protection business has experienced encouraging growth while through its 17.8% holding in <a href="https://www.smartkarma.com/entities/anhui-conch-cement-co-ltd" target="_blank" data-smartkarma-citation="entities:159:1" rel="noopener">Anhui Conch Cement Co Ltd H (914 HK)</a>, it can benefit from higher cement demand driven by China's escalating infrastructure investments.</p><p>After posting a 30.1% YoY growth in 1H20, we expect outlook for its environmental business to stay promising due to: 1.) completion of pipeline projects, 2.) excellent capability to secure projects, 3.) good execution strength, 4.) positive margin outlook and 5.) solid financial position. At 7x PER and 1.3x P/B on a 12-month forward basis, we see Conch Venture inexpensive. Its average annual ROE of 20.8% for the next three years also affirms that valuations are attractive.</p>

In our view, China Conch Venture Holdings (586 HK) is well positioned to capture the opportunities posed by both the rise in environment protection and increase in infrastructure investment in China. Its energy preservation and environmental protection business has experienced encouraging growth while through its 17.8% holding in Anhui Conch Cement Co Ltd H (914 HK), it can benefit from higher cement demand driven by China's escalating infrastructure investments.After posting a 30.1% YoY growth in 1H20, we expect outlook for its environmental business to stay promising due to: 1.) completion of pipeline projects, 2.) excellent capability to secure projects, 3.) good execution strength, 4.) positive margin outlook and 5.) solid financial position. At 7x PER and 1.3x P/B on a 12-month forward basis, we see Conch Venture inexpensive. Its average annual ROE of 20.8% for the next three years also affirms that valuations are attractive.

Canvest Environmental Protection Group (1381 HK)

Zhejiang Weiming Environment Protection Co Ltd (603568 CH)

Zhejiang Weiming Environment Protection Co Ltd

Conch Venture (586 HK): The Best of Both Worlds