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The nature of the goods sold and the diversified geographical selling area leads me to want to buy CCH shares now. However, I think that the market has got carried away with the CCH share price. It’s clearly a high-risk play to consider buying shares in any company with exposure to Eastern Europe at the moment. So it could be the case that rather than currently being undervalued, the share price used to be overvalued, and the fall has merely brought it back to par. Even with the steep fall recently in the CCH share price, the ratio is still 15.72. I could be wrong here, as noted from the price-to-earnings ratio. This should insulate it from negative issues seen in a few of these at any one time. This spans three continents, from Nigeria to Italy. In fact, one of the reasons why I like the company is the broad geographical mix of countries that it deals with. It’s clear that the business has been doing well overall, and I don’t think the negative impact from Eastern Europe will be enough to materially alter this given the extent of the volume from this area. Net sales revenue was also up 16.9%, helping to boost net profit by 31.9% on the previous year. In the full-year results released in February, the company showed total volumes up 13% from 2020. There will be a negative financial impact on the business in this fiscal year, but I struggle to see it being substantial enough to warrant such a move downwards. But I ask myself whether a 36% fall is really representative of the facts I’ve just detailed above. I do understand why CCH shares have fallen in the past few weeks. Even though Ukraine and Russia accounted for around 20% of 2021 volumes, if the impact of the war moves more into Central Europe then business could be hurt even further. This too will impact supply in the short term.įinally, CCH services most of Europe. Not only this, but CCH actually has a plant located in Ukraine, which it has recently had to shut down.

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