03. February 2021 | 08:00 CET
Xpeng, Q&M Dental, SAP - Incredible growth opportunities!
One surprise of the past year was the sudden boom in IPOs, especially in the US. This trend is likely to accelerate in the year ahead. The IPO of SAP's subsidiary whets the appetite for more. The Asian middle class is also hungry for more. Consumption is exploding as a result of the enormous growth in purchasing power. Sectors such as wellness and aesthetics are set to experience unprecedented hype in the coming years.
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ISIN: SG2E73981531 , DE0007164600 , US98422D1054
Q&M Dental - Profit from the boom!
China's economy is growing faster and more significantly than in other parts of the world. As a result, the salary level, primarily of the middle class, is also being raised over time. At the moment, especially in Southeast Asian countries, once can see an increase in the standard of living. Consumption is being fueled. Demand for travel, consumer goods, and wellness and aesthetics is growing. The Singapore-based Q&M Dental Group is benefiting enormously from the exploding market for dental aesthetics and dentistry. The dental group is the largest dental services provider, operating 114 dental offices, 5 medical clinics and 3 dental supplies and equipment distribution companies in Singapore, Malaysia, and China. With the help of 230 dentists and over 400 employees, Q&M Dental Group serves more than 600,000 patients.
The listed Company, which currently has a market capitalization of EUR 219.87 million, is also a leader in the field of research. In a joint venture with leading international organizations, a platform has been built to use artificial intelligence to identify the patient's underlying disease and suggest the most suitable treatment method.
For 2021, the focus is on further growth, which the Company had already postponed due to Corona. The Q&M Dental Group management is planning to expand to Malaysia and China and open ten more dental clinics. The exciting Company is traded on the primary stock exchange in Singapore as well as in Germany.
Xpeng - Bombastic jump
The sales figures for January read fantastic for the Chinese electric car startup. Xpeng was able to deliver 6,015 vehicles. This number represents an increase of 470% compared to the same month last year. The total sales consisted of 3,710 units of the P7 and 2,305 units of the G3. The full-year 2020 also saw a significant increase compared to the same period last year. Xpeng delivered a total of 27,041 units, 112% more than in 2019. As we reported in January, the signs at Xpeng continue to point to growth. The Chinese automaker has been pledged a total of USD 2 billion in financing from five major banks in China, including three financial institutions very close to the government.
Competitor NIO also had another record month. It delivered 7,225 vehicles, up a whopping 352.1% from January 2020, with sales of 2,720 units of the ES6, the 5-seat electric SUV, and 1,660 units of the ES8, the company's 6- to 7-seat electric SUV. In December, NIO sold 7,007 units. This was the first time we have seen a slowdown in growth compared to previous months.
SAP - The Subsidiary Dances!
It is done! The subsidiary of the Walldorf-based Company was successfully listed on Nasdaq. Qualtrics shares were sold in the IPO for around USD 30.0 each, with USD 550 million added by the US financial investor Silver Lake with their discussed entry. At the end of the first day of trading the Qualtrics shares closed at USD 45.50, up just over 50%. The share sale is ringing in SAP's coffers. According to Company reports, around USD 2.5 billion was raised by the IPO, of which USD 500 million is to go to data specialist Qualtrics as a cash injection. The rest, around USD 1.9 billion, will go to the German parent Company. The Company plans to use the capital raised to reduce debt. The one-off gain would also make it possible to increase the dividend.
The majority of analysts were satisfied with the figures for the fourth quarter of 2020, according to which the Walldorf-based Company's sales fell by 6.3% to EUR 7.54 billion. Profit rose by 17.7% to EUR 1.91 billion. For 2021, analysts anticipate earnings per share of EUR 3.82. As for the dividend, EUR 1.80 per share certificate is to be distributed, as was the case last year. Most analysts were satisfied above all with the stabilization of the cloud business. Barclays' British investment bank left its rating at "overweight" with a target price of EUR 134. The picture for SAP has brightened on the chart. If the resistance level of EUR 110, which the share failed to overcome last week, is sustainably overcome, the gap in the share price after the Q3 figures debacle at EUR 123 should be closed relatively quickly.