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.

WTI Rising Wedge Vulnerabilities - A Short/Long Strategy

Kunlun Energy (135 HK): Deep Dig into Valuation

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

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/kunlun-energy-co-ltd" target="_blank" data-smartkarma-citation="entities:10054:1" rel="noopener">Kunlun Energy (135 HK)</a> has been gradually increasing its focus on downstream natural gas sales business, from previously on upstream exploration and production and midstream natural gas pipeline investment/operations. We expect the continued execution of such strategy to lead to a significant re-rating over the next 12-18 months. </p><p>Kunlun's recent acquisition of 17 city gas projects has served as a catalyst to the share price. However, we believe there will be more similar acquisitions in the future, resulting in natural gas sales business to account for a growing proportion of the company's earnings. On this thesis, Kunlun, which trades on 9.4x PER for FY19F, deserves a narrower discount to the gas utilities peers which trade on 17-19x PER. A re-rating to 30% discount, from currently about 45%, to the average for its peers will point to more than 25% upside.</p>

Kunlun Energy (135 HK) has been gradually increasing its focus on downstream natural gas sales business, from previously on upstream exploration and production and midstream natural gas pipeline investment/operations. We expect the continued execution of such strategy to lead to a significant re-rating over the next 12-18 months. Kunlun's recent acquisition of 17 city gas projects has served as a catalyst to the share price. However, we believe there will be more similar acquisitions in the future, resulting in natural gas sales business to account for a growing proportion of the company's earnings. On this thesis, Kunlun, which trades on 9.4x PER for FY19F, deserves a narrower discount to the gas utilities peers which trade on 17-19x PER. A re-rating to 30% discount, from currently about 45%, to the average for its peers will point to more than 25% upside.

Kunlun Energy (135 HK): Deserves a Gas Utilities Valuation?