08. February 2021 | 07:10 CET
TUI, Pollux Properties, Formycon - When will the starting signal be given?
Currently, no question is heard more often: When will we see a return to normality? Light at the end of the tunnel is promised by the vaccines that are gradually being approved. The drugs against the Coronavirus, which are currently in various research phases, promise potential and could allow people to go about their daily lives as usual in the future. Through the action of these drugs, free, carefree travel could once again be possible. A boom seems pre-programmed.
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ISIN: SG1I77884290 , DE000TUAG000 , DE000A1EWVY8
Pollux Properties - firmly positioned
Compared to the rest of the world, Asia was better able to defend itself against the Corona pandemic's economic effects. China was even able to prevent its gross domestic product from falling in 2020. The city-state of Singapore is also on the upswing. Its economy is highly developed, a free market, and considered one of the most open and business-friendly in the world. Because of this stability and the attractive financial climate, Singapore benefits from an influx of investment from both institutional and private investors. The real estate market is also growing strongly. Price increases over the last five years have been close to 13% per year.
Well-positioned in the booming real estate market is Pollux Properties, a real estate portfolio holder and developer. Even in the Corona year 2020, the Company was able to bring in a record result. Compared to the previous year, earnings increased by a whopping 46%. According to the Company's management, it also has more than EUR 18.7 million in cash. A total of seven new major projects were completed. The total construction volume amounted to the equivalent of just under EUR 250 million with a total built gross floor area of just under 140,000sqm. In addition, EUR 10 million is managed in the fund management division. This area is also to be expanded significantly.
The stock market value of Pollux Properties currently amounts to just under EUR 52 million. In addition to the leading stock exchange in Singapore, the stock is also traded in Germany. Given the booming real estate business in Singapore, it is worth taking a closer look at the Company.
TUI - Starting signal at Whitsun?
Hardly any other industry has been hit harder by the Corona Crisis than the tourism industry. Without state aid, the German flagship, TUI AG, would have long since slipped into bankruptcy. A total of EUR 4.8 billion in state aid has been provided to the group. The German government, private investors and banks agreed on a third financing package of EUR 1.8 billion as recently as December. This final liquidity reserve is intended to bring calm until the start of the summer season. Now the travel representative of our federal government's tourism industry, Thomas Bareiß, has spoken to Reuters.
For the spring and until Easter, he is not counting on any hope for travel, but greater freedoms should mean that things will slowly start to pick up from Whitsun onwards. According to the politician, there should even be a travel boom for the summer and possibly compensate for the shortfalls from the winter and spring. However, the prerequisite is that the vaccination process progresses and no further mutations or serious developments occur. For now, with all the anticipation, it is possible to imagine a typical travel pattern in 2021. If there is a boom, the TUI share will also move upwards. The valuation is currently limping with a stock market value of EUR 2.3 billion and debts of more than double that. We advise caution with the TUI share. However, if a turnaround in the travel sector does emerge, rising valuations are likely in the long term.
Formycon - stable development
Apart from the news about the subscription of shares in employee stock option programs by several board members, no information influenced the share price. Nevertheless, the share price shot up by over 12% to EUR 69.20 last Friday. The all-time high of the Formycon share in December was only marginally higher at EUR 72. Currently, the race against the Corona pandemic is focused on vaccines. The search for drugs is likely to pick up again in the year. The Bavarians, for example, are betting on a blocker called FYB207.
This drug is designed to block the entry of Sars-CoV-2 into cells. According to the Company's management, the drug offers maximum protection against mutations. Promising studies are currently underway. However, it may be some time before the drug is ready for the market: The Company expects approval in a year at the earliest. In a study at the beginning of January, analysts at First Berlin issued a buy recommendation and raised the price target from the previous EUR 43.00 to the current EUR 78.00. The Company's management is currently conducting promising studies on the drug.