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/1321" target="_blank" data-smartkarma-citation="entities:1321:1">Sinotrans Limited H (598 HK)</a> is obviously a counter-intuitive play amid the current US-China trade war. However, the company's exposure to US is actually manageable and the market has already discounted much of the bad news, in our view, given its current P/B and P/E of 0.65x and 8x respectively, which are close to the 5-year lows. Considering the potential upside factors, we think that, at the current level, we should not be too bearish. A return to historical average P/B and P/E multiples will point to over 50% upside on the share price and, and if this is too optimistic, then even at 20% discount to historical averages, upside will still reach 23%.</p>

Sinotrans Limited H (598 HK) is obviously a counter-intuitive play amid the current US-China trade war. However, the company's exposure to US is actually manageable and the market has already discounted much of the bad news, in our view, given its current P/B and P/E of 0.65x and 8x respectively, which are close to the 5-year lows. Considering the potential upside factors, we think that, at the current level, we should not be too bearish. A return to historical average P/B and P/E multiples will point to over 50% upside on the share price and, and if this is too optimistic, then even at 20% discount to historical averages, upside will still reach 23%.

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