May 17th, 2022 | 13:11 CEST
BioNTech, mm2 Asia, TUI - Do not oversleep!
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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.
BioNTech - Momentum noticeably waning
Every remarkable boom comes to an end at some point. In the past fiscal year, the Corona vaccine manufacturer was able to generate sales of EUR 19.3 billion and a remarkable profit of EUR 10.3 billion. The high order backlog, which could still be built up at the end of 2021, led to a positive picture at the beginning of the new fiscal year.
The German biotech company tripled sales from EUR 2.05 billion to EUR 6.37 billion in the first quarter. Profit developed just as dynamically, jumping to EUR 3.70 billion. When presenting the figures, the Mainz-based Company reiterated its guidance for 2022 with sales of EUR 13 to 17 billion.
On average, analysts believe that the shares have an upside potential of just under 50%. Experts also agree that it will not be possible to repeat the record results of 2021. According to analysts, profits in 2024 will only amount to a good third of the total, or around EUR 3.6 billion. The Company is currently worth around EUR 37 billion on the stock market.
It should not be underestimated what financial strength BioNTech has received from the boom. The Company intends to use the profit for share buybacks and dividends and to invest in further research. CEO Sahin spoke of "consistent implementation of plans in the growth areas of infectious diseases and cancer treatment" when publishing the latest quarterly data. He added, "we are convinced that thanks to our innovative strength, we are well-positioned to bring several products to market in the coming years." Thus, the Mainz-based company should no longer be classified as a one-hit wonder, bringing higher share prices into perspective.
mm2 Asia - Things are looking up again
The Singapore-based company is broadly diversified in the entertainment sector. Through acquisitions in recent years, the Company significantly expanded its radius, starting from its core business of content production, distribution and sponsorship. The acquisition of a majority stake in the award-winning virtual reality, visual effects and computer-generated imagery studio, Vividthree Holdings, and an event production and concert promotion company, UnUsUaL Limited, gives it a clear competitive edge over rivals in this field.
With the establishment of mmCineplexes and the acquisition of Cathay Cineplexes Pte. Ltd., mm2 Asia has also advanced to become one of the most important cinema operators in Malaysia and Singapore. After two tough years, the Corona loosening measures are now boosting the event production and concert promotion segment.
The Company's entry into the NFT business with its marketplace called Metaviva generates a great deal of imagination. How much additional business can be generated here remains to be seen. The growth of the existing business areas alone speaks in favor of the Company, valued at around SGD 160 million on the stock exchange. According to analysts, the shares of this innovative Company are significantly undervalued. Interested investors can still acquire the share certificates at a significant discount to book value.
TUI - The crisis seems to be over
In connection with the recently published half-year figures, company CEO Fritz Joussen expressed his conviction that the Company will be able to return to operating profitability in the current financial year. The latest development in booking figures prompted the TUI boss to make this optimistic assessment. He said that the booking level for the summer had reached around 85% of the pre-crisis level. TUI Germany even received a third more summer bookings in April than in the same month in 2019 before the pandemic.
In the first half of the current financial year up to the end of March 2022, the Group significantly reduced its typical seasonal loss. As of the end of September, i.e. the end of the financial year, TUI expects well over ten million travellers. Operating profit (EBIT) adjusted for special effects is expected to be "significantly positive". Nevertheless, the majority of analysts consider the share price to be exhausted.
The development is heading in the right direction. Several factors should not be forgotten when assessing the situation. Several capital measures have noticeably increased the number of TUI shares, and the Company is currently valued at around EUR 3 billion on the stock market. The Group has also risen to number one in the industry following the bankruptcy of the British travel group Thomas Cook.
Every crisis also represents an opportunity. Although this may sound a bit trite, there is some truth in it. During the pandemic, BioNTech was the first Corona vaccine manufacturer to soar. TUI crashed, survived and is now even the biggest player in the industry. mm2 Asia has many arrows in its quiver and is undervalued, according to analysts.
Conflict of interest
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