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 (0598 HK): 1Q20 in Line, Still See Positive Risk-Return Payoff at Historical Low Valuation

China Transportation: In-Depth Look into April Export Figures and Readthrough to Sea and Air Freight

Sinotrans (0598 HK): China Merchants Group to Increase Stake - A Target for Privatisation?

Sinotrans Limited (598 HK) : Acquisition Spree Expands Global and Domestic Networks

Sinotrans Limited (598 HK): Is the Market Too Bearish?

Sinotrans Limited (598 HK): A Remarkable First Half Despite Trade War Headwinds

Sinotrans Limited (598 HK): Good Momentum of National Express Volume in May Is Positive

Equity Bottom-Up

<p>After posting a decent 87.4% growth in recurring profit in FY19, the profitability for <a href="https://www.smartkarma.com/entities/sinotrans-limited-h" target="_blank" data-smartkarma-citation="entities:1321:1" rel="noopener">Sinotrans Limited H (598 HK)</a> will be under pressure in this year due to Covid-19 outbreak. However, we believe the stock's risk-return payoff looks favorable at the current share price.</p><p>Sinotrans is in a net cash position, has high proportion of variable costs and is significantly backed by its land assets. Even under our conservative forecast, we still see it achieve an ROE above its trough in 2009. The stock is now trading on 0.41x P/B, more than 1 SD below the historical average of 0.56x since its IPO back in 2003, and is not far from the record low of 0.35x.</p>

After posting a decent 87.4% growth in recurring profit in FY19, the profitability for Sinotrans Limited H (598 HK) will be under pressure in this year due to Covid-19 outbreak. However, we believe the stock's risk-return payoff looks favorable at the current share price.Sinotrans is in a net cash position, has high proportion of variable costs and is significantly backed by its land assets. Even under our conservative forecast, we still see it achieve an ROE above its trough in 2009. The stock is now trading on 0.41x P/B, more than 1 SD below the historical average of 0.56x since its IPO back in 2003, and is not far from the record low of 0.35x.

Sinotrans (598 HK): Favorable Risk-Return Payoff