08. February 2021 | 07:00 CET
Alibaba, GS Holdings, Lufthansa: Asia as an investment target
When it comes to promising growth regions, investors have little choice: Asia has been the growth region par excellence for many years. Although Africa and South America have also been repeatedly proclaimed as promising, Asia now has a unique dynamism. In addition to production, Asia has long been an economic region driven by consumption. Every year, millions of Asians earn a modest amount of wealth - and want to treat themselves. We present three interesting investment ideas.
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ISIN: SG1CF0000001 , US01609W1027 , DE0008232125
Alibaba: Jack Ma's humility pays off
When the Chinese go shopping, they like to go to big malls. They want to celebrate shopping and emulate the supposed Western lifestyle. Even in pandemic times, shopping malls are open in China - thanks to the consistent Corona strategy. But even if shopping sprees and showing off the latest consumer items are popular, the eCommerce business is also booming. Alibaba is the best proof of this. In the second quarter of the fiscal year alone, Alibaba's revenue went up by a whopping 30%. Based on a baseline of more than USD 70 billion annually, this growth is an impressive number.
Since Alibaba has numerous subsidiaries in addition to its trading platform and is also a tech Company, the stock is considered interesting. Recently, the Company received a rebuke from Beijing because of its self-confident demeanor, which also led to the IPO of the fintech subsidiary Ant Group being canceled. However, the situation seems to have settled down again. Company founder Jack Ma has humbly re-emerged after his publicity absence giving hope that things can continue as they have been for Alibaba. The stock has been slipping over the past three months but has been gaining again over the past few weeks.
GS Holdings: from Asian Starbucks to health supplements
Whenever Asians are not shopping at home with a smartphone or tablet, they are drawn to malls and shopping centers. After running errands, it is good manners in Asia to grab a bite to eat and wind down the shopping experience. And this is where GS Holdings comes in. The Company is a provider of system catering and has several exciting brands. These include the chicken-rice concept "Sing Swee Kee" and "Raffles Coffee," which is set to become something like the Starbucks of Asia in the long term. In addition, GS Holdings is a service provider for restaurants and operates three food courts in Singapore.
Most recently, the Company entered the health supplements business. The subsidiary "Raffles Brands" will sell health supplements, as well as aloe vera-based foods and beverages. Health supplements are already a large market in Europe and the US - the trend towards self-optimization and increasing awareness of health has caused health supplements to rise for years. This development is yet to come in Asia. As ResearchAnMarkets.com estimates, the market for health supplements in China could rise to USD 40 billion by 2023. That equates to annual growth of around 14%.
Lufthansa: This share will take off again
One Company benefiting from Asia's boom that no one is keeping track of is Deutsche Lufthansa. The Company, which Corona has shaken well, is currently adjusting its workforce to a shrinking diet. It is unclear whether there will be as many flights again after the crisis. One market that remains attractive, however, is Asia. While German pilots are preparing for difficult times, there is still a shortage of skilled workers in Asia. Lufthansa has several Asian destinations on its flight schedule and should also benefit from Asian tourists making their way back to Europe.
After the state investment of EUR 9 billion, the crane airline promised a comprehensive savings program. Around 100 aircraft are to be mothballed or returned to lessors. Although the strategy also appears risky given investments by competitors such as Ryanair, a smaller and more agile Lufthansa could occupy markets that are promising in the future. The stock is down but kicking its way free. When the pandemic is over, this stock will take off again - but exactly how far remains an open question.