From MoneyWeek · · 1m
Three undervalued emerging market stocks to consider
Fidelity picks three undervalued emerging market stocks for investors
In brief
Fidelity picks three undervalued emerging market stocks for investors Cosmecca Korea, Sinotruk, and Alphamin offer strong growth potential in their respective markets Originally reported by MoneyWeek.
K-beauty manufacturer
Cosmecca Korea produces skincare for major brands and is Korea's third-largest manufacturer with strong demand for Korean cosmetics.
“Cosmecca Korea (Seoul: 241710) develops and produces skincare products on these brands' behalf”
China's truck giant
Sinotruk dominates China's heavy-duty truck market and sells trucks to over 150 countries, benefiting from strong demand in Africa.
“Think of Sinotruk (Hong Kong: 3808) as China's equivalent of Volvo Trucks or Scania”
Tin producer
Alphamin produces 7% of global tin from high-grade mines in the Democratic Republic of Congo, trading at a cheap multiple.
“Alphamin (Vancouver: AFM) operates two of the world's highest-grade tin mines”
AI demand boost
Growing AI server and semiconductor demand is increasing tin usage despite tight supply conditions.
“Tin might seem an unlikely beneficiary of the AI boom but growing demand for the metal for use in AI servers and semiconductors”
Fidelity's approach
Fidelity uses long and short positions across emerging markets with focus on strong fundamentals and corporate governance.
“We select emerging market stocks based on fundamentals and quality”
Emerging market focus
The strategy targets companies with sustainable returns, strong governance, and under-leveraged balance sheets in emerging markets.
“We look to go long on stocks of companies that can generate sustainably higher returns”
The headline
Cosmecca Korea, Sinotruk, and Alphamin offer strong growth potential in their respective markets
