Hunting:Would you buy a company with these stats in Central Asia?
Market Cap 125B (9,689,922 USD)
Profit: 40B (3,100,775 USD)
Stock type: 100% Common Stock
BioKimyo, in Uzbekistan
21800 UZS (1.70 USD)
Product Offerings
- Ethyl alcohol recticed from grain
- Production of technical ethyl rectified alcohol
- Technological steam
Ratios
3.15Price / Earnings
1.16Price / Book value
11.01% Dividend
36.87% RoE
Profits (Outdated Data Unfortunately)
I have found their production and selling costs–which reconfirms their financial data as being profitable. However, my Russian is only so good unfortunately so to make full sense of their data, it’s quite challenging.
Dividends
These are the dividend yields over the last 9 years (2024 is on top).
Uzbekistan
Uzbekistan is a very interesting country from a macro-perspective. It has a high fertility rate, it has reasonable taxes, little barriers to doing business and is currently going through a period of privatization of assets. The last I checked, bank deposits were paying over 12% in their local soms currency which had been performing in unison with the USD; sweet deal. Uzbekistan is also a country with very little debt, growing infrastructure, a rapidly growing economy and crucially, a resource rich backing just before a commodity cycle.
Uzbekistan is a country I’d love to get to; and when I do, you can read about here
Who Should Buy This?
- Someone who is bullish on Central Asia
- Someone who has a lot of cash sitting there and doesn’t mind it working for them for a number of years
- Someone eager for diversification and dividends
- Someone wanting to get their capital outside of the “West”
- Value investors
Why share this post given it’s only in Uzbekistan
Admittedly, I wasn’t sure whether to continue writing this, since it does seem very niche. I finished it anyway because I think it’s a good reminder that there are valuable companies in the most unlikely of regions. They may hold very little debt, show revenue growth, healthy dividends and great margins. If you had to stuff ‘X’ amount of capital in a company and look away for 10 years, it may make sense to do so in a much smaller company that holds a healthy balance sheet, pays you to hold it and in a relatively uncorrelated, detached jurisdiction compared to a behemoth of a stock with lots of volume but is heavily correlated to downturns with capped upside.
Essentially, this is a reminder that opportunities do exist at all times.
Closing
The unique thing that I like to bring to the table with my blog posts is fundamentally being contrarian. There are many great newsletter and blog services out there that cover stocks in depth, however they are often searching for alpha amongst a highly correlated USA market at a time when there are major macro themes occurring (wars, sovereign debt crisis, mass migration, emerging economies, commodity bull cycle, AI & more). Therefore, On The Ball believes there are value opportunities by zooming out and seeing the big picture before finding valuable companies.
Where are you looking now?
Don’t just tell me…tell others
