06. April 2021 | 07:30 CET
Xiaomi, Pollux Properties, Deutsche Telekom - Strong development!
Delayed vaccination programs, hard lockdown, empty city centers - The DAX has become immune to the uncertain outlook and chaotic crisis management in Germany. At 15,000 points, a new all-time high was climbed last week. The stock market lights continue to be green, both in terms of the chart and fundamentals. The reason for this is the positive developments in the United States. The vaccination marathon, where every adult US citizen is to receive a vaccination offer by the end of May, is to be followed by a gigantic economic stimulus program to revive the economy. These developments should boost the leading stock exchanges on Wall Street and carry the European markets along with them.
time to read: 3 minutes by Stefan Feulner
Deutsche Telekom - Potential through subsidiary
Good figures, a strong outlook and an exceptionally well-performing subsidiary from America. These were the results of Deutsche Telekom's Annual General Meeting last Thursday. According to CEO Höttges, the Group made good progress through the year. Revenue climbed 25.4% to more than EUR 100 billion, while adjusted EBITDA rose 41.6% to EUR 35 billion. Only the dividend payment, which remains at a mere EUR 0.60 despite the increased earnings, drew quiet criticism from shareholders.
Among other things, the US subsidiary T-Mobile US, in which Deutsche Telekom currently holds a 44% stake, was responsible for the leap in revenue into the triple digits. However, a voting rights agreement allows the US Company to be consolidated in the balance sheet. There is also a call option valid until July 2024, under which the Bonn-based Company can acquire 101 million T-Mobile shares from SoftBank. However, according to the CEO, there is no rush here, as Deutsche Telekom can buy at a lower price than the current share price. The T-Share has finally awoken from its slumber. The high of EUR 17.91 reached in 2017 is within reach. The Deutsche Telekom story is still on track!
Pollux Properties - Undervalued Asian pearl
Germany is not the only country suffering from the consequences of the Corona pandemic. Even Singapore, the wealthy city-state with the highest standard of living in the Southeast Asian region, has seen its growth dip. After years of economic growth averaging 13%, there was a slump of an estimated 6% in the Corona year 2020. Significantly hit by the lockdowns and the shift to home offices was the office real estate sector. Here, rental prices shrank by almost 11%, and a further 5% drop in prices is expected in 2021 due to the change in working conditions. Yields on the Singapore stock exchange were also below most Asian trading centers on average. Here, however, analysts expect outperformance and a continuation of economic growth at pre-crisis levels.
Despite the lull in the commercial real estate market, the full year 2020 went more than satisfactorily for property manager Pollux Properties. The reason was the diversification of the business model on three pillars. Although the real estate development segment came to a standstill in 2020, the Company maintained its revenue at around the previous year's level despite Corona through its portfolio properties. Pollux manages properties in Singapore with an equivalent value of around EUR 200 million with an extensive portfolio of residential properties and office and retail space - and its third pillar, fund management. Although there was no dividend for investors this year, after the Corona Crisis year and the boom expected again in subsequent years, the Company plans to increase distributions constantly.
With a well-filled cash position of EUR 19.74 million, the portfolio of existing properties will also be increased further. However, the most significant growth driver is likely to be fund management. This area is currently still at the beginning of its development. Looking at the valuation of Pollux Properties, one can see a serious undervaluation. Total assets of just under EUR 236 million are offset by liabilities of only EUR 112 million. Thus, the net assets per share of EUR 0.045 are 60% above the current stock market price of EUR 0.021. In addition to the home stock exchange in Singapore, the share is also traded in Frankfurt.
Xiaomi - Positive signs
A great honor for the technology Company Xiaomi. According to Counterpoint Research, the Chinese Company is the new No. 1 smartphone maker in China and No. 3 globally, with a global market share of 13% in February. Huawei ranks No. 4 in China with a global market share of 4%. Samsung, the world's No. 1 handset maker, had a 20% market share, while Apple ranked No. 2 with a 17% market share and Huawei fell to No. 6 globally.
Xiaomi also continues to get serious in the electric car sector. After several denials, Company leader Lei Jun has announced that the Company will enter the production of electric cars. Xiaomi plans to invest a total of USD 10 billion from its approximately USD 16 billion cash reserves to build a vehicle that will compete with domestic electric carmakers such as Nio or BYD and the top dog Tesla. In terms of the chart, the correction for the Xiaomi share could be over. The chart is forming a bottom in the USD 14.50 area. After a successful test, there would be a short-term potential of up to USD 19.