May 5th, 2021 | 11:00 CEST
Aurelius, The Place Holdings, DWS - Yield Foxes
Table of contents:
The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.
AURELIUS EQUITY OPPORTUNITIES - Waiting for news
After the Company had a lot of positive news for the shareholders in March and April with several acquisitions, it has become a bit quiet around the asset manager at the moment. The share is consolidating at a high level. At currently EUR 26.80, the Company is valued at EUR 820 million.
However, there could soon be new impetus again. On May 12, the Group plans to publish an interim statement for the first quarter. On May 18, the Company will invite its shareholders to the Annual General Meeting. A dividend of EUR 1.00 is to be distributed. For the future, the Company intends to realize a higher distribution for shareholders, depending on the economic development. This sustainable distribution policy, which can be planned for shareholders, holds out the prospect of a dividend of EUR 1.25 per share for 2021 and EUR 1.50 per share for 2022.
For the current year, CEO Matthias Täubl had already held out the prospect of significantly more transactions than in 2020 several weeks ago and also reported completion shortly thereafter. When acquiring companies or group units, Aurelius focuses on the IT & Business Services, Industrials & Chemicals and Lifestyle & Consumer Goods sectors. In general, however, no sectors are excluded per se. The Munich-based Company's track record is impressive, and transactions are boosting the share price. But even now, the share is not too expensive. The NAV of EUR 32 communicated by the Company is likely to turn out to be too low.
THE PLACE HOLDINGS - Unconventional and innovative China play
Singapore-based, The Place Holdings combines real estate, tourism and media businesses innovatively. The Asian island state, which was released into freedom in 1965, was one of the few countries to leap from an emerging market to an industrialized nation within just a few decades. Today, Singapore is an important financial center and trading hub. With just under 6 million inhabitants, the city-state has a strong economy. Education, quality of life, health care, security and political stability also give the tax haven a high quality of life. With a homeownership rate of 91%, the island state has the second-highest rate in the world.
The Company brings together the three areas mentioned above, which at first glance may not seem to go together at all: Real Estate Development and Management, Cultural Tourism and Integrated Media. The concept becomes rounded by acquiring low occupancy facilities and revitalizing them with innovative ideas consisting of advertising, shopping and entertainment, among others, and making them attractive to users again. The Place is involved in two real estate projects worth around SGD 400 million and is developing them together with partners. Cooperation with local partners, in particular, is part of the Company's recipe for success.
In tourism, the 270,000 square meter property in Mount Yuntai Tourist Township, virtually the sister park of the Grand Canyon National Park, on the Chinese mainland is of great importance. Around 40 million people live in the region. The scenic spot is increasingly being developed for tourism - an excellent value lever for the stock. But the shares are more than just a bet on growing domestic tourism in China. The media and advertising expertise that "modernizes" traditional business models is the Company's real differentiator.
DWS GROUP - Much too cheap in absolute and relative terms
With EUR 820 billion in assets under management, DWS is one of the world's leading asset managers and employs around 3,500 people. The asset manager offers a fully integrated global investment platform covering traditional asset classes and alternative investments. Client groups include large institutions, governments, corporations, foundations as well as private investors. As an active manager, asset classes have the traditional equity, fixed income and money market categories, and multi-asset solutions. In addition, the Company also offers alternative investments (real estate, infrastructure, private equity, liquid real assets), sustainable investments and, increasingly, passive investments.
At the end of April, the Group presented its Q1 figures and again showed strong results generated due to its diversified business model. Despite high outflows from cash products (low margins), a net inflow of EUR 1 billion was achieved. Adjusted pre-tax profit increased by 17% to EUR 249 million. At a share price of just under EUR 36, the Group is worth around EUR 7.2 billion on the stock market. Given the good operating figures, this is far too little. Moreover, the Company is valued on the stock exchange at only around 0.9% of assets under management. In our opinion, the two starting points result in a price potential for the share certificates of at least 50%.
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