04. February 2021 | 09:41 CET
BYD, Revez, Alibaba - Profiting from the digital transformation!
Everything is going digital, and the Corona pandemic is accelerating the process. Shopping online at Amazon or Zalando was already relatively normal before the outbreak of the virus. Now, however, new things like homeschooling, home offices and Zoom conferences are being added. The world is becoming more and more digital. Companies' business models are also changing. Be part of it and participate in the digital transformation.
time to read:
2 minutes
by
Stefan Feulner
ISIN:
SGXE83751573 , CNE100000296 , US01609W1027
"[...] We recognized that there is a lack of business models that combine innovative business concepts, such as "new retail" solutions and omni-channel strategies, with conventional business segments. [...]" Fan Xian Yong, CEO, The Place Holdings
Author
Stefan Feulner
The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.
Working with the future
Working with the technologies of the future is the Singapore-based Revez Corporation. In doing so, the Company sees itself as a creative tech hub that specializes in delivering innovative concepts and solutions to its clients across the Asia-Pacific region. The composition of this digital hub is unique. The "Revez Hub" comprises four independent brands.
These brands are linked together to leverage synergies for breadth of clientele. The focus areas of the four vertical brands, Revez, Newood Design, IOIO Lab, and AIAC, cover information and communications technology (ICT), deep tech in artificial intelligence (AI) and the Internet of Things (IoT), industrial automation, cybersecurity, and MICE support.
Growth in all areas
The listed Company, which is traded on its home stock exchange in Singapore as well as in Germany, has a market capitalization of EUR 28.6 million. The Company's strategy is fully geared towards growth. Thus, in addition to organic growth, it is also on the lookout for value-enhancing mergers and acquisitions.
"Build your dream," Elon!
Tesla founder Elon Musk is already the wealthiest person in the world. Now the US industry leader is aiming to buy 20% of the Chinese competitor BYD. The transaction is to be paid 50% in cash, 50% with Tesla shares. Various online sites spread the rumors. The Americans seem to be less interested in BYD's models than in its production capacities as a battery manufacturer. However, BYD denied via Chinese media, loosely based on Donald Trump: "Fake News!".
Bus division still on the upswing
On the other hand, not denied, is another order that BYD received for zero-emission electric buses from the United States, more precisely from Massachusetts. The Company, backed by Warren Buffet's investment Company Berkshire Hathaway, is building electric buses for the Woods Hole, Martha's Vineyard and Nantucket Steamship Authority. The Steamship Authority plans to use three BYD K9M electric buses to transport guests from parking lots to mainland ferry terminals in Hyannis and Woods Hole.
Strong numbers, fuzzy outlook
Chinese Internet giant Alibaba delivered strong third-quarter numbers. Revenue grew 37% year-on-year in the third to USD 33.88 billion. Operating profit rose by almost 25% to USD 7.51 billion. Net income also increased significantly by 56% to USD 11.95 billion. Growth was particularly strong in the cloud computing segment. Here, revenue was lifted by 50% year-on-year to just under USD 2.47 billion. However, the anti-Monopoly Law investigation by the Chinese government authorities is still hovering over the figures. In November, the IPO of the Ant Group subsidiary was halted just days before its launch. Following an intervention by China's central bank, the Company will probably have to discontinue or dispose of its business model's important areas.
Stabilization of the share price
Due to the uncertainties, Alibaba did not give an outlook; only the sales target should increase around 30%. Chart-wise, a bottom is taking place at the moment. The share price is once again trading above its rising 200-day line. If the breakout above the USD 225 mark succeeds, a short-term price target of USD 235 will result. Even though there are certainly still some regulatory hurdles to overcome, we do not expect a complete break-up of the Internet giant and see significantly rising prices in the future.
