Research Notes

The Research Department of Finam is publishing an analytical report on the chemical fertilizer sector. Some of this sector’s companies still look fundamentally undervalued to us, but we see a number of factors that could change the market’s attitude towards them over the next year. These include, first of all, expectations of active structuring and IPOs launched by a number of concerns affiliated with major holdings. These processes have proved beneficial to the valuations of many companies, including metal producers.

We are looking for some of the sector’s companies to consolidate and start more aggressively entering stock markets in order to raise funds, while improving corporate governance standards and ultimately making a better impression on investors. The current fundamental undervaluation of many chemical producers will favorably impact investors’ future sentiment towards them.

Those who wish to receive the full version of this report are kindly requested to contact the Sales Department or Dmitry Sourkov by phone (204-82-75) or e-mail (sourkov@finam.ru).

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