03. February 2021 | 09:18 CET
Evotec, GS Holdings, TUI - Growth without end!
China's growth is almost uninterrupted. Experts predict that the Middle Kingdom will become the world's largest economy by 2028 at the latest. The fact that China has so far come out of the Corona Crisis in better shape means that the transition is likely to happen even sooner. The tiger economies such as Singapore, Hong Kong and Taiwan will also benefit. The upswing is giving rise to new business models with enormous growth potential for the coming years. We present the latest opportunities one by one.
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ISIN: SG1CF0000001 , DE0005664809 , DE000TUAG000
Due to the growth of the economies, the wages of the middle class are gradually increasing. This increase completely changes the lifestyle of the Asian population. Consumption is being boosted. The demand for foreign travel, wellness and health products is increasing. In addition, there is an increasing demand for new concepts in the catering and lifestyle industry. The system gastronomy sector is covered by the Singapore-based investment holding Company GS Holdings. The Company divides its business activities into two segments.
The F&B Business segment comprises investments and the management of restaurants and cafés. In addition to management, new brands, concepts and franchise models are also developed here. GS currently operates three food courts in Bukit Batok and Sungei Kadut Way, a halal restaurant in Singapore and a famous chicken and rice restaurant under the "Sing Swee Kee" brand. In addition to Swing Swee Kee, the fast-growing "Raffles Coffee" brand is another drawing card in the franchise portfolio. "Raffles Coffee" is to be established in Asia similarly to the Starbucks brand, which is successful in the Western world.
A new deal in the growth market
Last week, Raffles Brands subsidiary inked a significant deal in the growth market of nutritional supplements with Kaifeng Jufeel. Raffles Brands will be appointed as the leading distributor for specific dietary supplements and related products derived from the aloe vera plant, as well as aloe vera-based food and beverage products. According to ResearchAndMarkets.com, China's dietary supplements market is expected to reach USD 40 billion by 2023, representing a compound annual growth rate of 14%.
On two legs
BOP is the second segment of GS Holdings. Its Wish Hospitality subsidiary handles branding, operations and services for the F&B and healthcare industries. This segment also coordinates training, staff recruitment and management functions. In addition to Singapore, the BOP division already operates in the Brunei, Malaysia and Indonesia markets. In addition to Singapore's primary market, the GS Holdings share can also be traded in Germany.
The drama seems to have come to an end, at least for Evotec's stock. After the Company entered the fairway last week between hedge fund Melvin Capital on one side and Robinhood traders on the other, the enormous fluctuations should now be over. According to reports in recent days, the US hedge fund now seems to have said goodbye to the share entirely. The hedge fund became known in the past few days for shorting Evotec shares and the US stock GameStop. In the US, a revolution of small investors is currently taking place who want to shake up large hedge funds. Melvin Capital held large short positions on the US stock GameStop, which were driven into extreme losses by a concerted buying campaign by small investors, fueled by the community "WallStreetBets" and coordinated via reddit.com.
Major shareholder increases stake
In the latest capital increase, major shareholder Alexei Mordashov increased his stake in tourism company TUI to 30.1%. Due to the exemption from BaFin, the major shareholder does not have to submit a takeover offer for the remaining shares in the Company, which is usually due when the 30% threshold is exceeded. The Corona Crisis has hit the Company particularly hard. The capital increase is part of a EUR 1.8 billion financing package agreed by TUI with Mordashov, the banks and the German government at the beginning of December.