Frontier and emerging markets (Vietnam)

Dylan Waller

Nomadic Equity

Thematic (Sector/Industry)

Steel Industry UpdatesVietnam's steel industry is still delivering rapid growth and experienced a <a href="http://vietnamnews.vn/economy/273001/domestic-steel-consumption-up.html#Ix6S1SdprrtPVHxt.97" target="_blank">24.4% increase</a> in the purchase of building steel products and a 34.7% increase in consumption of steel pipes during the first half of this year.  Several factors to note moving forward include the following:<ul><li>The current consumption per capita is currently<a href="http://www.seaisi.org/News/5712/Vietnams+steel+industry+makes+a+case+for+more+production+amid+distrust" target="_blank"> 200 kg.</a>, below the global average of 240 kg, and the average of 500-600 kgs. for industrialized nations.  The industry still has ample potential…</li></ul>

Steel Industry UpdatesVietnam's steel industry is still delivering rapid growth and experienced a 24.4% increase in the purchase of building steel products and a 34.7% increase in consumption of steel pipes during the first half of this year.  Several factors to note moving forward include the following:The current consumption per capita is currently 200 kg., below the global average of 240 kg, and the average of 500-600 kgs. for industrialized nations.  The industry still has ample potential…

In my previous insight, I covered how Hoa Phat Group and Hoa Sen Group were strong value investment picks, and were not financially impacted from the plunging price of steel.  This insight will take a further look at how Vietnam stands out as a positive outlier compared to the global steel industry, as a significant number of major steel companies are currently not profitable.  Vietnam can also be considered a positive outlier when compared to frontier and emerging asia, as many stocks in Vietnam are discounted to other frontier and emerging markets in Asia.  Vietnam’s steel industry is therefore a significant area for investment when compared to larger companies in developed markets, as well as frontier and emerging Asia.  The struggle in Vietnam has mainly been for small and mid cap companies in this industry, although some of these companies are exceptions.

In my previous insight, I covered how Hoa Phat Group and Hoa Sen Group were strong value investment picks, and were not financially impacted from the plunging price of steel.  This insight will take a further look at how Vietnam stands out as a positive outlier compared to the global steel industry, as a significant number of major steel companies are currently not profitable.  Vietnam can also be considered a positive outlier when compared to frontier and emerging asia, as many stocks in Vietnam are discounted to other frontier and emerging markets in Asia.  Vietnam’s steel industry is therefore a significant area for investment when compared to larger companies in developed markets, as well as frontier and emerging Asia.  The struggle in Vietnam has mainly been for small and mid cap companies in this industry, although some of these companies are exceptions.

Vietnam's Steel Industry Is a Global Outlier

Vietnam

Petrovietnam Fertilizer and Chemical JSC manufactures fertilizers. The Company specializes in producing and trading in fertilizers, liquid ammoniac, industrial gas, and other chemicals. Petrovietnam Fertilizer and Chemical JSC also trades electricity.

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Petrovietnam Fert & Chemical (DPM VN)

Updates for Vietnam's Steel Industry

Steel Industry UpdatesVietnam's steel industry is still delivering rapid growth and experienced a 24.4% increase in the purchase of building steel...

Nomadic Equity

Vietnam's Steel Industry Is a Global Outlier

In my previous insight, I covered how Hoa Phat Group and Hoa Sen Group were strong value investment picks, and were not financially impacted from...

Nomadic Equity

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)