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.

Sinotrans (598 HK): Massive Beat in 3Q20 Profit

Sinotrans (598 HK): Encouraging Industry Datapoints Bode Well for Outlook

China Logistics: Key Beneficiaries of China's Greater Bay Area Postal and Express Development

China Infrastructure REITs: First Look on H-Share Toll Road Sector

Sinotrans (598 HK): Very Encouraging Profit Recovery Momentum in 2Q20

Equity Bottom-Up

<p>We look at <a href="https://www.smartkarma.com/entities/sinotrans-limited-h" target="_blank" data-smartkarma-citation="entities:1321:1" rel="noopener">Sinotrans (598 HK)</a> from the infrastructure REIT perspective given its numerous storage and logistics assets spreading all over China. At end-1H20, it owns over 10m sq.m. of land and over 4m sq.m. of warehouses/logistics centres with a total book cost of Rmb19.6bn. We believe these are significant assets for repackaging into a REIT to allow it to realise their underlying values.<a href="https://www.smartkarma.com/entities/sinotrans-ltd" target="_blank" data-smartkarma-citation="entities:29262:1" rel="noopener"></a></p><p>Based on our assumptions, we estimate that a REIT issuance backed by its logistics assets will be able to boost its market cap by at least 16.5%. Moreover, this is only a conservative estimate as we think that the H-share will benefit more than the A-share. Moreover, Sinotrans can take this opportunity to cash in on these assets partially for funding its future investment in logistics infrastructure.  </p>

We look at Sinotrans (598 HK) from the infrastructure REIT perspective given its numerous storage and logistics assets spreading all over China. At end-1H20, it owns over 10m sq.m. of land and over 4m sq.m. of warehouses/logistics centres with a total book cost of Rmb19.6bn. We believe these are significant assets for repackaging into a REIT to allow it to realise their underlying values.Based on our assumptions, we estimate that a REIT issuance backed by its logistics assets will be able to boost its market cap by at least 16.5%. Moreover, this is only a conservative estimate as we think that the H-share will benefit more than the A-share. Moreover, Sinotrans can take this opportunity to cash in on these assets partially for funding its future investment in logistics infrastructure.  

Sinotrans

Sinotrans (598 HK): A REIT Perspective