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.

Hainan Meilan Intl Airport (357 HK): Possible Mandatory General Offer

China Pair Trade: Long BCIA (694 HK), Short Air China (753 HK)

Cathay Pacific (293 HK): Multiple Positive Developments

Equity Bottom-Up

Hainan Meilan International Airport / Equity Bottom-Up

Hainan Meilan International Airport (357 HK)

<ul>
<li>The general offer for <a href="https://www.smartkarma.com/entities/hainan-meilan-international-airport-company-limited" target="_blank" data-smartkarma-citation="entities:12545:1" rel="noopener">Hainan Meilan International Airport (357 HK)</a> at HK$10.62 is not attractive, and there should be more upside than that.</li>
<li>With its ROE expected to recover to 6% in FY26-27, the implied P/B of 1.1x is too depressed. It is unable to fairly reflect the turnaround in profitability.</li>
<li>Relative to <a href="https://www.smartkarma.com/entities/beijing-capital-international-airport-bcia" target="_blank" data-smartkarma-citation="entities:10626:1" rel="noopener">Beijing Capital International Airport (BCIA) (694 HK)</a>'s 65.4x FY26 and 28x FY26 PER, the PERs of 22.1x and 14.2x of the offer are also too low. </li>
</ul>


The general offer for Hainan Meilan International Airport (357 HK) at HK$10.62 is not attractive, and there should be more upside than that.
With its ROE expected to recover to 6% in FY26-27, the implied P/B of 1.1x is too depressed. It is unable to fairly reflect the turnaround in profitability.
Relative to Beijing Capital International Airport (BCIA) (694 HK)'s 65.4x FY26 and 28x FY26 PER, the PERs of 22.1x and 14.2x of the offer are also too low. 


Hainan Airport Infrastructure (600515 CH)

Shanghai International Airport (600009 CH)

Beijing Capital International Airport (694 HK)

Guangzhou Baiyun International Airport (600004 CH)

Hainan Meilan Intl Airport (357 HK): No to the General Offer