September 15th, 2021 | 11:23 CEST
AdTiger, ProSiebenSat.1, SAP - Digital winners
Table of contents:
ADTIGER CORPORATIONS LTD - Undiscovered and undervalued
This digital marketing specialist operates a Chinese online advertising platform and specializes in global advertisers from ASEAN countries, especially China. AdTiger manages its clients' advertising internationally by networking with high-reach social media platforms and apps such as Facebook, Snapchat, Google, Twitter, Yahoo and TikTok. In addition, the Company uses its own Big Data software called AdTensor to respond to user behavior in real-time. In this way, ad slots and ad times can be optimized, and maximum reach of ads can be achieved.
The Company is expanding dynamically. Last year, AdTiger was named the fastest-growing digital marketing company in 2020 at the 20th IAI International Advertising Awards. The Company operates profitably and is debt-free. However, investments in the development and marketing of its apps have depressed profits by around 40% in the first six months of the current fiscal year. However, this is to be classified as a one-off effect.
The shares are currently trading at almost exactly the same level as 12 months ago at around HKD 0.80. That means that the share has moved well away from its high of just under HKD 1.40. However, the strategic positioning and the operating figures speak for a share price recovery. AdTiger is valued at just 1 times its projected 2022 revenue of the equivalent of USD 67 million. The revenue increase from this fiscal year to next of just over 30% underscores the growth momentum. Analysts, on average, believe the stock has an upside potential of 35%.
PROSIEBENSAT.1 MEDIA SE - Advertising business gains significant momentum
The ProSiebenSat.1 Group has long since ceased to be a pure media company and is consistently digitizing and diversifying its business. The Group uses its reach in the TV business, with 15 free and pay TVs reaching 45 million households in Germany, Austria, and Switzerland to develop digital business areas. In doing so, the Bavarians are focusing on their own dating and digital consumer platforms.
The half-year figures showed that the advertising business has picked up significantly. In the second quarter, the MDAX-listed Group increased revenues by 48% to EUR 1.048 billion. Starting from a low, corona-related prior-year base, adjusted EBITDA showed an increase of more than a factor of 7. With this tailwind, ProSiebenSat.1 raised its full-year forecast. The new benchmark is for revenues between EUR 4.4 and EUR 4.5 billion, with adjusted EBITDA expected to increase to around EUR 820 million. The stock is moderately valued with a 2022 P/E of 11.6 and a dividend yield of just over 4%.
SAP SE - Short-term in the clan
While Salesforce recently raised its full-year guidance, Oracle disappointed the stock market on the revenue side with its latest quarterly figures. The SAP shares were also negatively impacted by this. The Americans' revenue performance has been negatively impacted by a slowdown in demand for certain cloud solutions.
According to the Company, as the market leader in enterprise software for companies of all sizes, 77% of global trading volume runs through SAP systems. That is extremely impressive. The DAX-listed Group has a strong cloud business and focuses on business and pricing models that enable recurring revenue. As early as 2025, 85% of the Group's revenues of EUR 22 billion are expected to be generated from these predictable revenues.
Digitization is a megatrend that encompasses many different areas. Software, among other things, holds a key position, and this is where investors can profit with the SAP share. If you find the intersection between advertising and digitization exciting, with a strong focus on the German-speaking region, ProSiebenSat.1 is interesting. The share of the dynamically growing specialist for digital marketing - AdTiger - is also promising. The Company is well-positioned to expand significantly in China and Asia.
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