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December 28th, 2020 | 10:34 CET

Nio, GS Holdings, Geely - it goes on!

  • Investments
Photo credits: GS Holdings

China's economy grows and grows. According to the Centre for Economics, the Middle Kingdom will replace the USA as the world's largest economy as early as 2028. The accelerating effect is that Asia is coming out of the Coronavirus Crisis faster and better than Europe or the USA. Thus, the economic results favor the Chinese and the emerging tiger economies such as Taiwan, Hong Kong, and Singapore. Here, there are numerous companies with disproportionate growth opportunities for the coming years.

time to read: 2 minutes | Author: Stefan Feulner
ISIN: SG1CF0000001 , US62914V1061 , KYG3777B1032

Table of contents:


    Jared Scharf, CEO, Desert Gold Ventures Inc.
    "[...] We have built one of the largest land packages of any non-producer in the belt at over 440 sq.km and have made more than 25 gold discoveries on the property to date with 5 of these discoveries totaling about 1.1 million ounces of gold resources. [...]" Jared Scharf, CEO, Desert Gold Ventures Inc.

    Full interview

     

    Well positioned

    The rapidly growing prosperity in parts of Asia is also changing the food industry significantly. The demand for new concepts in the foodservice and lifestyle sectors is increasing. And this is precisely where the Singapore-based investment Holding Company GS Holdings comes in. GS Holdings separates its business activities into 2 areas. The F&B Business division includes investments as well as the management of restaurants or cafés.

    In addition to management, new brands, concepts and franchise models are also developed here. Currently, GS operates three food courts in Bukit Batok and Sungei Kadut Way, a halal restaurant in Singapore and a famous chicken rice restaurant under the brand "Sing Swee Kee". In addition to Swing Swee Kee, the fast-growing "Raffles Coffee" brand is another drawing card in the franchise portfolio.

    Two pillars

    The second division, BOP, handles branding, operations and services for the F&B and healthcare industries. Here, the subsidiary Wish Hospitality is one of the largest providers in Singapore. In addition to management tasks, its offerings include operational support, recruitment and employee training. The BOP segment has already expanded into the growth markets of Brunei, Malaysia and Indonesia. GS Holding shares have also been traded in Germany since the beginning of December.

    Smart partnership

    A great honor for the Chinese electric car maker Geely; none other than the German flagship Daimler has formed a joint venture with the Chinese and moved production of its small car, Smart, to China. Although production has already been switched to electric motors for the Fortwo and Forfour models, the Smart is currently still manufactured with partner Renault in France and Slovenia. From 2022, everything except the design department will move to China.

    To the next level

    The Smarts produced in China in the future will be based entirely on an electric platform currently under development at Geely. As Smart brand manager Lescow revealed to the Frankfurter Allgemeine Zeitung, the first Chinese model will be a compact SUV. In addition, "various models with different ranges" are to be developed with the Chinese. Lescow also stated that the brand should radiate "more premium" and meet more upscale demands. However, a transition to a luxury brand is not an issue, he said.

    Strong outlook

    The majority of analysts continue to be optimistic about the share. Macquarie raised its forecasts and increased the price target from HKD 14.5 to HKD 28.4. The rating is now "buy". The reasons include better-than-expected pricing trends, a solid product cycle, including the new generation Boyue and Emgrand, and its rising earnings momentum. In addition, experts generally see a continued substantial increase in demand for electric vehicles. In addition to Geely, the competition is also continuing to expand. For example, Nio plans to target the European market in the second half of 2021 at the latest.

    New models from January

    To further close in on competitors such as Tesla or Xpeng, Shanghai-based electric carmaker Nio is coming around the corner with a product expansion. The first electric sedan model is to be unveiled on January 9, 2021, Nio Day. The electric sedan is to feature two electric motors on the front and rear axles as already known from earlier press reports. In addition to the sedans, however, the Company says it is also developing other models. Nio plans to launch at least one new model per year. In addition, the use of battery swap stations will be further boosted.


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    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

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    Der Autor

    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.

    About the author



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