Canadians Investors! 10 emerging market stocks to buy before they swell

Summary

  • Stock market investors are often advised to keep a diversified portfolio as investing heavily in a single stock can lead to the risk of heavier losses.
  • Another common advice that often comes an investor’s way is to explore international stocks.
  • As economies are expected to recover from the pandemic lows this year, investors may want to keep a close eye on emerging markets.

Stock market investors are often advised to keep a diversified portfolio as investing heavily in a single stock can lead to the risk of heavier losses.

Another common advice that often comes an investor’s way is to explore international stocks.

As economies are expected to recover from their pandemic lows this year, investors may want to keep a close eye on emerging markets. On that note, let us explore 10 stocks from emerging markets across the world that are already giants on home soil.

1. Centrais Electricas Brasileiras SA (B3:ELET6)


Centrais Electricas Brasileiras ,or Eletrobras, is the biggest utility company in Latin America. The company is not only responsible for generating and transmitting electricity in Brazil, but is also reportedly the fourth largest clean energy enterprise in the world.

Eletrobras stock surged by 31 per cent in the last twelve months, while it expanded by about 27 per cent year-to-date (YTD). At market close on Thursday, July 15, the shares closed at a value of R$ 43.61 apiece. 

In Q1 2021, Eletrobras recorded a net profit of R$ 1,609 million, which was 31 per cent higher on a year-over-year (YoY) basis.

 

2. HDFC Bank Ltd (NSE:HDBK)


One of the leading private banks in India, HDFC Bank claims to have over 5,600 branches in the country. As India houses 1.3 billion people, the bank seems to have the potential to expand and increase its market size.

In 2020, the bank reportedly served 56 million people, which could further grow in the coming years.

HDFC shares clocked a 52-week high of Rs 1,641 on February 16 this year. As per its closing price of Rs 1,520 on July 15, HDBK stock has climbed by 1.5 per cent in the last three months.

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3. Saudi Arabian Oil Company (TADAWUL:2222)


The Saudi Arabian Oil Company, or Saudi Aramco, is among the biggest oil producers in the world.

Aramco closed a US$ 12.4 billion deal in June this year, after a consortium of international investors acquired a 49 per cent stake in its subsidiary, Aramco Oil Pipelines.

The oil and gas company posted a net income of US$ 21,717 million in the first quarter of 2021, up from that of US$ 16,661 million in Q1 2020. Its free cash flows, on the other hand, increased to US$ 18,279 million in Q1 2021.

Saudi Aramco paid a total of US$ 18.75 billion in dividends (or US$ 0.09 per unit) to its shareholders for the quarter ending March 31, 2021.

Its shares surged by 4.3 per cent in the past year, having closed at 34.90 SAR on July 15.

4. Tabreed (DFM:TABREED)


Based out of the United Arab Emirates, Tabreed is recognized for providing environment-friendly district cooling services, which is an innovative way to cool an area or a building through chilled water.

The company delivers 1.4 million refrigeration tons of cooling and runs 86 plants. Tabreed's cooling system is installed in projects like Burj Khalifa, The Dubai Mall and Etihad Towers. 

Tabreed claims to eliminate 1,350,000 tons of CO2 every year, and its stock could be an option for investors looking to explore green stocks.

TABREED stock returned 55 per cent in the last one year and grew about one per cent quarter-to-date (QTD). The scrips were priced at 2.7 AED at market close on July 14.

Tabreed recorded revenues of 357.6 million AED in Q1 2021, up from 294.4 million AED in Q1 2020.

5. Hong Seng Consolidated Berhad (KLSE:HONGSENG)


Hong Seng is a supply chain specialist of medical devices and equipment, as well as a financial services provider.

In Q4 FY21, the Malaysia-based diversified business company recorded a profit of RM 10.2 million. This figure stood against a loss of RM 8.2 million in Q4 FY20.

Hong Seng’s total current assets valued at RM 249.7 million in the latest quarter.

HONGSENG stock catapulted by 1,957 per cent in the past year and grew about 79 per cent in the past one month.

6. SASA Polyester SAN A.S. (IST:SASA)


Since 1966, this Turkish company has been in the business of producing polyester staple fibre. It has an employee strength of over 4,000 and claims to have a robust infrastructure with high production facilities.

From 380,000 tons of polyester in 2019, SASA’s sales reportedly increased by 89 per cent YoY to 719,000 tons in 2020. SASA’s cash and cash equivalents stood at 428.4 million Turkish Lira in 2020.

SASA stock, on the other hand, grew about 14.6 per cent in the last three months, outperforming the BIST 100 Index that dipped by about seven per cent. The scrips were trading at 31.54 Turkish Lira apiece on July 16 (7AM EST).

7. Shoprite Holdings Ltd (JSE:SHP)


Headquartered in South Africa, Shoprite is the largest supermarket retailer in Africa.

It runs 2,387 corporate stores and 505 franchise outlets globally, with a presence in 14 countries. Shoprite also claims that over 24 million people shop at the company's retail stores every day.

SHP stock soared by 15 per cent in the last six months and grew 12.5 per cent in the last nine months. It had scored a 52-week high of ZAC 16.39 apiece on June 2, 2021. On July 15, it was trading at ZAC 15.57 per share at market close.

Copyright © 2021 Kalkine Media

8. Taiwan Semiconductor Manufacturing Company (TPE:2330)


A leading multinational semiconductor manufacturing and designing company, it is likely to expand its share in the market.

As the global demand for semiconductors expands, Taiwan Semiconductor could rise to the challenge to outperform rival companies.

Priced at 614 NTD apiece on July 15, Taiwan Semiconductor stock surged by about 64.7 per cent in the last twelve months.

It recorded a gross profit of 186,197 million New Taiwan Dollars (NTD) in Q2 2021, reflecting an increase of 53 per cent year-over-year (YoY).\

 

9. Russian Aquaculture (MCX:AQUA)


Russian Aquaculture focuses on the production of fish, such as trout and Atlantic salmon. The company claims to own 36 sites for salmon and trout farming and has the potential production volume of 50,000 tonnes of redfish.

In 2020, Russian Aquaculture posted a net profit of RR 3.1 billion. In the same fiscal year, its net cash generated from financing activities stood at RR 1.8 billion.

AQUA stock has registered a growth of 17 per cent month-to-date. It climbed by about 65 per cent in the last six months, closing at RR 436.5 per share on July 15.

10. SCD Co. Ltd. (KOSDAQ:SCD)


Established in 1987, SCD Co. is a manufacturer and seller of home appliances in South Korea. It is owned by Nidec Sankyo Corporation, which is also known to make card readers, industrial robots, micro motors, and a broad range of other equipment.

For the fiscal year that ended on March 31, 2021, Nidec Corporation recorded a 5.4 per cent YoY increase in its net sales of 1,618,064 million yen. Its operating profit stood at 160,011 million yen in same period, representing an increase of 47.4 per cent YoY.

SCD stock expanded by 152 per cent in the past year, scoring a 52-week high of KRW 3,105 on Friday, July 16.

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