AAUKF - Vale: How The Company Fits Into China's New Economy
2024-04-17 11:50:47 ET
Summary
- The company has strong competitive advantages with high-quality iron ore amid China's need to decarbonize.
- Additionally, the company has the best margins and the best return on equity compared to its competitors.
- Despite this, it is traded at an attractive valuation based on the EV/EBITDA multiple compared to its competitors.
Investment Thesis
I recommend buying Vale ( VALE ) shares. The real estate sector contributes around 20% of Chinese GDP, and it is nothing new that the sector is going through a crisis. However, China seeks to change its economic matrix, with incentives for the production of electric vehicles and a goal of peaking carbon dioxide emissions before 2030, reaching carbon neutrality before 2060....
Vale: How The Company Fits Into China's New Economy