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 Gas Holdings (384 HK): Slower 1H Growth but Positive Guidance from Post-Result Call

China Gas Placement - Deal Size Is Similar to Last Placement but Dynamics Are Different

China Gas Holdings (384 HK): Placement, Hydrogen Energy, LNG Terminal and Unicom/Sinopec Co-Ops

ENN Energy (2688 HK): Key Takeaways from Post-1H20 Result Call - Still Best Placed in the Sector

China Gas Holdings (384 HK): Key Takeaways from Post-Result Investor Call

China Infrastructure Deep Dive: Gas Utilities H & A Shares

ENN Ecological (600803 CH): Weak 1Q20 but Metamorphosis in Good Progress

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/china-resources-gas-group-ltd" target="_blank" data-smartkarma-citation="entities:20525:1" rel="noopener">China Resources Gas (1193 HK)</a> reported a set of weak 1H20 result with profit dropped by 18.2% YoY and overall gas sales volume down 5.3%. While gas sales segment profit edged up 6.5% YoY, other segments including gas connection, gas appliances and gas station all recorded sharp plunge in profit. Gas connection is the worst segment with a 42% YoY decline in profit.</p><p>Along with other China gas utilities, we believe 2H20 outlook will improve for CR Gas. However, its heavy exposure to industrial customers, significant proportion of connection revenue and small contribution from distributed energy are challenges. Also, its 15x 12-month forward PER does not look particularly cheap. We maintain our preference on <a href="https://www.smartkarma.com/entities/enn-energy-holdings-ltd" target="_blank" data-smartkarma-citation="entities:316:1" rel="noopener">ENN Energy (2688 HK)</a> in the China gas utilities sector and expect near-term pressure on CR Gas given its weak result.</p>

China Resources Gas (1193 HK) reported a set of weak 1H20 result with profit dropped by 18.2% YoY and overall gas sales volume down 5.3%. While gas sales segment profit edged up 6.5% YoY, other segments including gas connection, gas appliances and gas station all recorded sharp plunge in profit. Gas connection is the worst segment with a 42% YoY decline in profit.Along with other China gas utilities, we believe 2H20 outlook will improve for CR Gas. However, its heavy exposure to industrial customers, significant proportion of connection revenue and small contribution from distributed energy are challenges. Also, its 15x 12-month forward PER does not look particularly cheap. We maintain our preference on ENN Energy (2688 HK) in the China gas utilities sector and expect near-term pressure on CR Gas given its weak result.

CR Gas (1193 HK): Sharp Contraction in 1H20 Profit Is Disappointing