19. May 2021 | 08:39 CET
CureVac, The Place Holdings, TUI - New start with great potential!
Finally! Due to the positive development of the vaccination program and the successful testing strategy, the incidence figures in Germany are gradually decreasing. Industries that suffered heavily from the pandemic, such as tourism and air travel, are breathing a sigh of relief. While Germans are still planning more domestic vacations during the Whitsun vacations, bookings abroad for the summer are rising disproportionately. Other countries are also increasingly focusing on domestic tourism, with considerable potential for the respective operators.
time to read: 4 minutes by Stefan Feulner
China far ahead
While in Europe, the third wave has just been flattened out and slow steps are being taken to return to certain normality, in China, everyday life has long since returned. There is a travel boom in the Middle Kingdom, primarily within the country. According to China's Ministry of Culture and Tourism, 102 million citizens took domestic trips during the annual National Day holiday in April 2021, a figure equivalent to 94.5% of the number of trips taken during the holiday in 2019, the year before COVID-19. Tourism has become a significant contributor to China's domestic economy and is a cornerstone of the government's long-term goal of creating a consumption-driven economy.
The emergence of an affluent middle class supports this plan. Due to the increasing economic power of consumers and the extreme inclination of the Chinese towards gaming, advertising, consumption and entertainment, the entertainment market is flourishing and new concepts are being developed. In contrast, much of China is still in a nascent phase in project and city development. Here, The Place Holdings, which is traded on the SGX in Singapore and Frankfurt, has created a perfect symbiosis of its three business segments to meet the needs of the emerging population.
Three models in one
The Place Holdings focuses on integrating traditional stores with omnichannel strategies and digital solutions such as "new-retail" solutions, last-mile logistics, immersive virtual reality technology, and smart connectivity for businesses to take advantage of new growth opportunities in the digital economy. The Group has built a business platform to integrate new value propositions within its 3 core businesses: real estate development and management, cultural tourism, and media-related businesses.
To date, the debt-free Company, which has around EUR 46 million in cash, has three acquisitions in its portfolio. In the case of the Reality Centre, which was acquired in 2020 for EUR 93 million, the experienced management speculates on the claim to bonus property ratios of between 25% to 30% if a change of use occurs under the Central Business District (CBD) Incentive Scheme. The Place Holdings hold a 20% stake in MCC Land's mixed development project adjacent to the Tanah Merah MRT interchange.
The third project, a plot of land that has only been held by a subsidiary since November, saw news of a significant revaluation last week. The size of the land is approximately 270,500.64 square meters. It is strategically located within Mount Yuntai Tourist Township, where hospitality properties, wellness resorts, integrated retail and commercial developments, and theme parks are planned and some are currently under development.
Compared to the property's valuation of EUR 14.27 million as of September 30, 2020, the property was valued at EUR 61.29 million, up 329%, after the zoning change by one of China's leading valuation firms, which will add EUR 47.02 million to the balance sheet. Currently, the market capitalization of the Company is EUR 370.48 million. Suppose you are interested in the real estate market 2.0. in Singapore, you cannot avoid The Place Holdings. However, one should strictly limit due to the low tradability in Germany.
When will the approval come?
Due to the possible patent release, Panic selling gave investors a second chance with the Tübingen-based vaccine manufacturer CureVac. The share price fell from a high of EUR 110 to a low of below EUR 75. After forming a double bottom, however, the price recovered and closed the torn downward gap at around EUR 90. Yesterday, the share tested resistance at EUR 95. Breaking through the EUR 100 mark, at which the value has already failed three times on a sustained basis, is likely to be a more challenging task. Driven by the news, this could happen in June. Currently, CureVac is still in clinical trials; an application for approval should follow soon. The Tübingen-based Company is also well on schedule with its research into a second-generation vaccine that is supposed to be particularly effective against mutations. Clinical trials are expected to begin in the third quarter. If the first vaccine is approved in June, we expect a test of the old highs at EUR 125.40, at least in the short term.
Hope dies last
From summer, everything should get better. After further lockdowns and postponements, the travel group TUI hopes for a quick recovery of travel in the summer months. Slowly, it is also high time if one does not want to once again pump the already plundered state coffers.
In the first two fiscal quarters of 2020/2021, from October to March, the world's largest travel provider accumulated a loss typical for the time of year. Still, at just under EUR 1.48 billion, this was more than 70% higher than in the same period last year. Currently, TUI has cash and cash equivalents of EUR 1.7 billion, with a cash outflow of EUR 300 million per month at last count. The state pumped a total of EUR 4.3 billion into the Hanover-based Group to prevent insolvency. Market capitalization is currently EUR 2.87 billion. Even though the travel business is picking up again, TUI faces major challenges in the future. Due to the uncertainties, we do not recommend an investment.