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February 25th, 2021 | 09:24 CET

TAAT, GS Holdings, Aphria - lifestyle and wellness stocks with powerful upside potential

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What does lifestyle and wellness encompass for you? Being active? Being pampered? Or a good meal followed by an espresso or a cigarette? The latter has become much less popular with Germans in recent years; the smoking rate has more than halved since 1980. Instead, the trend is toward greater health awareness: light and healthy food, natural supplements and gentle medicine. This trend can be observed worldwide and is continuing successively without any dependence on the economic situation. Because one thing is clear: people are saving money on their health last. Ideal conditions to now look at the securities of the following three companies.

time to read: 4 minutes | Author: Carsten Mainitz
ISIN: SG1CF0000001 , CA03765K1049 , CA87320L1031

Table of contents:

    TAAT LIFESTYLE & WELLNESS LTD - The revolution in the EUR 700 billion tobacco market

    Although the sales volume of tobacco and tobacco products has been declining for years and the number of smokers is also falling, albeit slowly but steadily, sales of tobacco products continue to grow worldwide and will break through the EUR 700 billion mark this year. The most dynamic development in 2021 will be in e-cigarettes, which are expected to grow by around +12%, but their market share will be just 2.6% at the end of the year.

    Despite all the health debates, most smokers seem to find it challenging to switch to the supposedly "healthier alternative." Here is where TAAT Lifestyle & Wellness comes in: Their Beyond Tobacco product is a tobacco alternative that looks like tobacco, smells like tobacco and is consumed like tobacco - but without the harmful nicotine. And people seem to have been clamoring for such a product: within 1 week of the recent live launch of its new online store for the US, the Company had sold more than CAD 100,000 worth of products.

    Investors also seem to see the small Canadian Company's potential and are sending the stock on a high. Since the beginning of the year, the share price has risen by around 100%. The Company is currently valued at approximately CAD 500 million. Although the addressable market is huge at around EUR 700 billion, the stock market value already contains some advance praise. In any case, the stock is exciting.

    GS HOLDINGS LIMITED - Lifestyle & Wellness has many faces

    One of the most famous Singalese dishes is Hainan Chicken Rice, consisting of poached chicken breast and seasoned rice with chili sauce and a cucumber garnish. One can find this popular dish at Sing Swee Kee, one of the five food locations of the Food & Beverage arm of GS Holdings. In addition, a halal restaurant and three food courts with various restaurants and coffee shops are part of the operational business. New brand development and franchising are among the areas of responsibility.

    The first Rasa Chicken by Sing Swee Kee was opened in the Sultanate of Brunei in November 2019. To further expand the Food & Beverage sector, specifically for the Chinese market, the Company has established Raffle Brands Pte. Ltd. The holding Company is committed to the food sector but is also involved in the healthcare sector. A few days ago, Raffles Brands announced that it had signed an agreement with the Chinese Company Kaifeng Jufeel for the distribution rights to aloe vera-based dietary supplements for China, ASEAN, and some African markets. The Chinese nutritional supplement market alone is expected to grow to over USD 40 billion by 2023.

    The holding Company's second pillar is the delivery of Branding, Operation & Procurement (BOP) services provided to Chinese companies through its subsidiary Wish Hospitality Holdings Pte. Ltd. BOP is to be understood as a unique form of business process outsourcing. Wish Hospitality currently manages 14 food & beverage locations in China. According to Statista, a CAGR of 12.6% is expected for China's BPO sector over the next five years.

    With its strengths in two absolute future industries, GS Holding currently appears to be a favorably valued growth candidate with a market capitalization of just under EUR 60 million.

    APHRIA INC - Merger with Tilray makes it the world's No.1 medical cannabis company

    Like black & white, like heaven & earth or like Daisy & Donald - diseases are unfortunately part of life. But in the treatment of diseases, new trends can be recognized in recent years. One of the most important is "gentle medicine". Where once the latest tablets from the pharmaceutical giants were diligently prescribed with almost no hesitation, attempts are now being made to use more natural therapies. But this is not always so easy. Especially in chronic pain therapy, the use of strong opioids was unthinkable for a long time.

    Although the pain-relieving effects of cannabis had been known for a very long time, the perception of it as an (illegal) "intoxicant" ensured, and for a long time, its medical effects were ignored. But for some time now, this has finally come to an end. The medical cannabis market has become a global growth engine, although it has yet to consolidate. Leading the way, thanks to very liberal legislation, are mainly Canadian companies. Two of them recently announced their merger plans: Aphria and Tilray. The merger will create the world's largest cannabis company, leaving behind the current market leader, Canopy (also from Canada).

    Given that so far only Aphria has been able to report a small profit, while Tilray has had to report a loss - albeit smaller than analysts expected - it is natural to note that the companies' current valuations involve a big bet on the future. On the other hand, putting these valuations in relation to the size of the total addressable market, estimated at just under USD 150 billion in 2027, which corresponds to an annual growth rate of 30%, puts the picture into perspective.

    Conflict of interest

    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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    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

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    Der Autor

    Carsten Mainitz

    The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

    About the author

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