11. March 2021 | 09:34 CET
NanoRepro, The Place Holdings, TUI - This industry is on the verge of a billion-dollar boom!
There appears to be light at the end of the tunnel. Travel was difficult to impossible during the long period of multiple lockdowns due to the Corona pandemic. Now, after more and more vaccines and rapid tests come on the market, the badly shaken industry is breathing a sigh of relief. Easter is close by and the call for vacations and recovery is getting louder. In addition to the established players that have been supported by government funding, there are promising companies that will shake up the travel segment with unique business models.
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ISIN: DE0006577109 , SG1Q02920318 , DE000TUAG000
When will the starting signal follow?
Everyone longs for the sea, beach and sun after missing last year's summer vacation. So summer bookings at tourism Company TUI are picking up significantly. But TUI is planning earlier and already wants to offer tourists Easter vacations in Majorca. The omens are good. Although Spain was still classified as a risk area by the Robert Koch Institute, new infections are falling rapidly. In addition, to satisfy the Germans' desire to travel, the offer is to be further expanded into the summer. According to TUI management, Spain remains the largest market in current bookings, ahead of Greece, Turkey and Italy. No clear statements have yet been made on whether vacations will remain affordable in the future or whether prices will explode. So early bookers could still book the underutilized spaces. In the long term, however, average prices are likely to rise significantly, in our opinion.
Where is the trend heading?
The TUI share has already emerged as a reopening winner alongside Lufthansa. The share price has more than tripled since the March low of EUR 1.53 in 2020. Currently, the share is consolidating near the support zone at EUR 5.0. An overcoming of the recovery high at EUR 5.48 could bring prices of EUR 6.0 in the short term. If the lifting of the Majorca travel restriction is decided, the target mark should also be reached quickly. However, from an investment point of view, there is currently no entry point for the tourism group. With a market capitalization of EUR 3.0 billion, it currently has a EUR 6.0 - 7.0 billion debt.
While Europeans are panting for a vacation, the daily routine has already set in in China. Without question, the Middle Kingdom has come through the pandemic better than the Western world. The enormous economic growth of the last decades could only be slowed down somewhat by Corona. Due to consumers' increasing economic power and the extreme inclination of the population towards gaming, advertising, consumption, and entertainment, the entertainment market is flourishing. In contrast, much of China is still in the construction phase in terms of project and city development. To incorporate the modern lifestyle into project development, Singapore-based Company "The Place Holdings Limited" uniquely combines three business pillars: real estate development and management, cultural tourism, and integrated media. The Company's goal is to buy underutilized assets and revitalize them with innovative management concepts from advertising, shopping and entertainment.
Strong support in the background
To accomplish this endeavor, The Place Holdings Limited has a unique selling proposition here. The Company is led by The Place Investment Group, a billionaire Chinese player with an extensive business portfolio in cultural tourism, integrated media, real estate development and management, biomedical technology investment, and international trade. Financially, the debt-free Company is well-positioned. There is currently just under EUR 46 million in the bank for further acquisitions. These are to be used in the next twelve months to grow through the acquisition of additional projects. Currently, The Place is involved in three promising projects. Back in April 2019, the Group acquired a freehold property previously known as Realty Centre for the equivalent of EUR 93.0 million. Here, the management speculates on the entitlement to Bonus property ratios of between 25% to 30% if a change of use is made under the Central Business District (CBD) Incentive Scheme.
Joint venture with key players
In November 2020, the Group subscribed to an 80% equity stake in Tianjie Yuntai Wanrun Property Development, which owns approximately 270,500sqkm of commercial land in the southeast of Mount Yuntai. The area around the Wanrun Property has seen significant development and the Group is currently in the midst of the land zoning change process. As a result, the gross floor area will increase and provide access to a broader group of interested buyers. A strategically significant step for the future was taken through the partnership with MCC Land,
an established developer in Singapore. As such, a 20% stake was taken in MCC Land's mixed development project adjacent to the Tanah Merah MRT interchange. The mixed development site has a land area of 8,880 square meters and can provide 265 condominiums and 2,000 square meters of commercial space. The Place Holdings Limited is operating in an extreme growth market. The numbers alone, with net profit increasing 286% in 2020, give an idea of the growth. The stock is traded in Germany in addition to its home exchange in Singapore.
NanoRepro AG is currently swimming on a wave of success. The Marburg-based Company, which before Corona was active in the field of self-diagnostics and had 25 rapid tests in its portfolio - including an HIV test, two pregnancy tests and five others purely for medical use - is reporting another breakthrough. After the Company had already concluded a cooperation agreement with the Hamburg-based Company ViroMed and the purchase of Corona antigen rapid tests from anterior nasal swabs with a volume of around EUR 30 million beginning of March, this order has now been significantly increased.
The order volume for the entire year 2021 has been increased to approximately EUR 200 million. The increase in the order volume with an obligation to take delivery is subject to the "NanoRepro SARS-CoV-2 Antigen Rapid Test Anterior Nasal Swab" being approved by the German Federal Institute for Drugs and Medical Devices (BfArM) for use by end-users. The application was submitted by NanoRepro weeks ago. The Company's market capitalization is currently just under EUR 151.0 million. After the outstanding reports, the overheating in the share price is clearly noticeable. Profit-taking would not hurt here!