rukawa Posted December 31, 2016 Posted December 31, 2016 I am looking for reasonably priced growth companies in Emerging markets like India, Brazil etc. Wondering if anyone has a good screen they could suggest or an interesting ideas? I was thinking things like consumer brand companies or something like Thomas Cook in India. I know nothing so any suggestions are welcome.
kab60 Posted December 31, 2016 Posted December 31, 2016 Videocon D2H (merging with Dishtv India, large merger spread). Pretty cheap on it's own, possibly more so together.
no_free_lunch Posted December 31, 2016 Posted December 31, 2016 Bollore is very reasonably priced with substantial operations in Africa. They are more into infrastructure: ports, railways, telecom than traditional consumer businesses. They also have substantial business in Europe so not a pure play on emerging markets.
sarganaga Posted December 31, 2016 Posted December 31, 2016 Beijing Enterprise Holdings... 8x forward earnings, 80% book, 4.5x cash flow. Water infrastructure, Natural gas distribution, largest beer producer/market share in Beijing. mid teens 1,3,5,10 year earnings growth. Pays 2.5%+ dividend.
ccplz Posted January 1, 2017 Posted January 1, 2017 Texhong Textiles Why do you say so? How do they compare with Shenzhou/Eclat/Hansae/Youngone in terms of valuation and growth?
KJP Posted January 1, 2017 Posted January 1, 2017 Texhong Textiles Why do you say so? How do they compare with Shenzhou/Eclat/Hansae/Youngone in terms of valuation and growth? I think the historical results tell the story here, once you account for the noise created by fluctuations in cotton prices. The Red Corner blog has a series of posts (and comments thereto) about Texhong, its business model and management. If I had to sum up the many thousands of words in those materials, it would be the following quote, which I've lifted from a comment to one of the posts on that blog: I am suggesting that Texhong has important unit cost advantages in yarns and that it therefore enjoys important competitive advantages notwithstanding the fact that he product that it sells is a commodity. You can look at Texhong's annual reports for 2006 and 2014 and contrast the following: General & Administrative costs per metric tonne of yarn Selling expense per MT of yarn (Selling expense = Selling & Distribution minus Transport) The unit cost DECLINE in these two line items between these two years should sum to approximately 1450 yuan per MT. 1450/MT is 6% of the LT average selling price of yarn (24,000 RMB/MT). So a 4.5% operating margin in 2006 becomes, because of scale/scope economies, a 10.5% margin. At constant asset turnover of 1.8x, Texhong's ROIC morphs from (1.8 x 4.5%) = 8% to (1.8 x 10.5%) = 19% At debt/equity of 50%, ROE improves from 16% to 38% Is it sustainable? Well the source is unit cost advantage. Yarn producers and yarn buyers are all price takers so global yarn prices -- and the therefore the prices at which Texhong sells its yarn -- do not go down just because Texhong improved its cost structure. What will happen when it is selling a million MT of yarn? How wide will the gap be then between Texhong and the 98,000 other yarn manufacturers in the PRC? **** Regarding the other companies you mentioned, are they actually comparable? Texhong makes yarn. Is Shenzou, for example, a yarn manufacturer, or is it further downstream (fabrics and garments)?
Mohammed Al Alwan Posted January 5, 2017 Posted January 5, 2017 I think Aramex listed in Dubai is an interesting growth story that is mispriced currently trading at 4.04 AED and PE 17X T12m EPS 0.24.Market Cap is 5,915M AED. Bloomberg code is ARMX UH Equity.
rukawa Posted January 11, 2017 Author Posted January 11, 2017 Beijing Enterprise Holdings... 8x forward earnings, 80% book, 4.5x cash flow. Water infrastructure, Natural gas distribution, largest beer producer/market share in Beijing. mid teens 1,3,5,10 year earnings growth. Pays 2.5%+ dividend. Any insight on why it is so cheap? Is it because its an SOE. I find it weird they combined such desperate businesses together.
sarganaga Posted January 11, 2017 Posted January 11, 2017 It's essentially a collection of assets that were under the control of the Beijing Municipal Government. The mishmash of businesses is not that unusual in China (ex Cheung Kong, Cofco, Chinese Resources Holdings before some of its spinoffs,Jardine group, Shanghai Industrial, etc) . As to the cheapness, who knows for sure? I think it mostly got caught in the downturn of Chinese stocks. Some people probably didn't like that they invested ~US one billion in Russian natural gas fields. They have monopoly like status for most of their businesses in Beijing with growth opportunities outside the area in water, natural gas distribution, and beer. It's about a 4% position for me. Their website is user friendly and has quite a bit of info about the company, structure, future plans, etc http://www.behl.com.hk/en/global/home.php
Guest Schwab711 Posted January 11, 2017 Posted January 11, 2017 Yingde Gases Group Company Limited (SEHK:2168) If you believe the accounting/auditor.
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