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.

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Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/lonking-holdings-ltd" target="_blank" data-smartkarma-citation="entities:3944:1" rel="noopener">Lonking Holdings (3339 HK)</a> is currently an 11.6% yielding stock, based on a final DPS of HK$0.25 and a share price of HK$2.16. For FY20F, we see the stock to still sit on a decent 8.9% dividend yield, despite business disruption from the Covid-19 outbreak. </p><p>With a 43.7% YoY growth in reported profit, its FY19 result did not disappoint us, though the in-line core profit is relatively flat YoY. Gross margin has expanded on slightly lower revenue, indicating excellent cost control. We continue to hold that Lonking is well-positioned to capture the government's post-outbreak infrastructure spending. Its net cash on hand of HK$0.63/share - some 29% of the share price - will help it navigate through the storm, in our view.</p>

Lonking Holdings (3339 HK) is currently an 11.6% yielding stock, based on a final DPS of HK$0.25 and a share price of HK$2.16. For FY20F, we see the stock to still sit on a decent 8.9% dividend yield, despite business disruption from the Covid-19 outbreak. With a 43.7% YoY growth in reported profit, its FY19 result did not disappoint us, though the in-line core profit is relatively flat YoY. Gross margin has expanded on slightly lower revenue, indicating excellent cost control. We continue to hold that Lonking is well-positioned to capture the government's post-outbreak infrastructure spending. Its net cash on hand of HK$0.63/share - some 29% of the share price - will help it navigate through the storm, in our view.

Lonking (3339 HK): Wow! It Is Yielding 11.6%!!!