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.

CPMC Holdings (906 HK): Catch-Up with Company Indicates Cost Pressure Manageable

CPMC Holdings (906 HK): Healthy 1H21 Despite Rising Cost, Highlights from Post-Result Call

CPMC (906 HK): Cost Pressure Appears Controlled While Demand Looks Firm

CPMC Holdings (906 HK): An Attractive Inexpensive Alternative Consumption Play

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/cpmc-holdings-ltd" target="_blank" data-smartkarma-citation="entities:10427:1" rel="noopener">CPMC Holdings (906 HK)</a> registered good FY20 result with a 28.9% YoY earnings growth. Pick-up in 2H20 is particularly solid, with an impressive 56.6% YoY growth. It is encouraging to see margin expanded across its all three business segments. Good profitability and cash received from Jiaduobao settlement have lowered its gearing to 43.6% in FY20, from 70.7% a year ago.</p><p>Management is confident on the outlook for FY21, despite the rising raw material price. It is able to shift the higher cost to customers, though there may be some delays. Higher volume and price hike should drive further ROE expansion in the next two years - to an average of 9% from 7.7% in FY20. We believe its 0.75x 12-month forward P/B multiple is not expensive, and the 10% drop in share price yesterday places the stock on an even more attractive level, in our view.</p>

CPMC Holdings (906 HK) registered good FY20 result with a 28.9% YoY earnings growth. Pick-up in 2H20 is particularly solid, with an impressive 56.6% YoY growth. It is encouraging to see margin expanded across its all three business segments. Good profitability and cash received from Jiaduobao settlement have lowered its gearing to 43.6% in FY20, from 70.7% a year ago.Management is confident on the outlook for FY21, despite the rising raw material price. It is able to shift the higher cost to customers, though there may be some delays. Higher volume and price hike should drive further ROE expansion in the next two years - to an average of 9% from 7.7% in FY20. We believe its 0.75x 12-month forward P/B multiple is not expensive, and the 10% drop in share price yesterday places the stock on an even more attractive level, in our view.

CPMC Holdings (906 HK): Sharp Rebound in 2H20; Management Stays Confident on FY21