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.

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

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

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

China Infrastructure Deep Dive: Gas Utilities H & A Shares

Kunlun Energy (135 HK): Solid Growth in Downstream Gas Sales Is the Driver

Kunlun Energy (135 HK): No Immediate Impact from National Pipeline Company

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/enn-ecological-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:16456:1" rel="noopener">ENN Ecological Holdings (600803 CH)</a> (ENNE) reported a disappointing 81.2% YoY decline in profit in 1Q20, but we believe the focus should be on the progress of the proposed acquisition of a 32.83% stake in <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> (ENN) which will almost completely transform the company. The positive news is that the transaction has already been approved by the China Securities Regulatory Commission earlier this month.</p><p>We believe the deal is good for ENNE as it can: 1.) swap out its crude oil exposure of<a href="https://www.smartkarma.com/entities/santos-ltd" target="_blank" data-smartkarma-citation="entities:711:1" rel="noopener"> Santos Ltd (STO AU)</a>; 2.) swap in the more stable gas utilities business of ENN; and 3.) improve its financial position. We see ENNE's proforma valuation not too expensive but the key risk still lies on the inability to proceed with the deal (though we think such possibility is low). </p>

ENN Ecological Holdings (600803 CH) (ENNE) reported a disappointing 81.2% YoY decline in profit in 1Q20, but we believe the focus should be on the progress of the proposed acquisition of a 32.83% stake in ENN Energy (2688 HK) (ENN) which will almost completely transform the company. The positive news is that the transaction has already been approved by the China Securities Regulatory Commission earlier this month.We believe the deal is good for ENNE as it can: 1.) swap out its crude oil exposure of Santos Ltd (STO AU); 2.) swap in the more stable gas utilities business of ENN; and 3.) improve its financial position. We see ENNE's proforma valuation not too expensive but the key risk still lies on the inability to proceed with the deal (though we think such possibility is low). 

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

ENN Natural Gas

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