Investment Idea:
Gold Miners

Highlights

• We recommend a neutral position for both Naspers and Prosus. Click here to read the full report on our secure site or log in to myBase.
• Despite the regulatory and political risks that come with investing in Chinese stocks, we acknowledge that, to a large extent, Prosus and Naspers provide an alternative risk and reward profile due to the exposure to structural growth trends, which are not available through alternative local counters.
• Naspers and Prosus trade at discounts of 23% and 13% respectively.
• Given that management is determined to reduce the discounts over time, we suspect there will eventually be large value unlock for shareholders.
• The share price for both Naspers and Prosus moves with a fairly high correlation to the USD/ZAR exchange rate