☕️ Volkswagen: Voltswagen an April Fool's joke

The world's largest non-commercial lender that is bigger than IMF and World Bank. BNM's 2020 net profit RM10.24 bil. From smartphones to EVs - Xiaomi's USD10 bil bet.

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1. MARKET SUMMARY

FBMKLCI closed 2.22% lower yesterday with more than 850 decliners as US government bond yield surged amidst a strengthening US dollar while S&P 500 hits record high ahead of Bidden’s spending plan outline.


2. NUMBERS AT A GLANCE

135.6 years — the amount of time women have to wait to be on equal footing as men according to World Economic Forum’s report no thanks to Covid-19.

RM10.24 billion — net profit of Bank Negara Malaysia in 2020, the central bank is to pay RM4 billion dividend to the government.

Fossil fuel stocks lost USD123 billion in value in the past decade, underperforming a baseline world equities index by 52 per cent

11,991 jewellery pieces seized by the police back in May 2018 from a premise belonging to Obyu Holdings Sdn Bhd at Pavilion Residences will take four to five days to be inspected.


3. COVID-19 SUMMARY


4. IN MALAYSIA 🇲🇾

  1. Malaysia Competition Commission (MyCC) wants to control the process of mergers and acquisitions (M&A) of companies after initiated the process to amend the Competition Act 2010 to get the power to do so. The amendments seek to prevent market concentration via creation of a monolith entity that could jeopardise the market.

  2. Berjaya Corp Bhd’s CEO Jalil Rasheed has bought 66 million shares in aggregate on Monday and Tuesday to raise his stake in the company to 2.71%, the exercise is estimated to cost RM41.2 million. Price of Berjaya Corp Bhd also rose to five year high of 46 sen.

  3. Malaysian banks and corporates bought more overseas assets in 2020 as the country’s external assets increased by RM139.6 billion in 2020. BNM said such moves helped the country’s international investment position (IIP) to register a net asset position of RM79.6billion, approximately 5.6% of gross domestic product (GDP) at the end of 2020.

  4. Three women have been fined RM5,000 for unapproved interstate travel in Kelantan during the conditional movement control order (CMCO) without obtaining approval letters from PDRM. The three women were detained during a standard operating procedure compliance operation carried out around Pasir Puteh.

  5. Khazanah Nasional Bhd’s semiconductor making unit SilTerra Malaysia Sdn Bhd is now sold to Dagang NeXchange Bhd (DNeX) and Beijing Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Center (Limited Partnership) (CGP Fund) for RM273 million in cash.

  6. Securities Commission Malaysia (SC) has added five schemes believed to be operated by a single syndicate to its Investors Alert list. The syndicate have duped hundreds of investors of over RM 7 million into unlicensed investment activities. The list of the five schemes can be found in the article here. Be vigilant, don’t fall for schemes that are too good to be true! Key is, don’t be greedy!


5. AROUND THE WORLD 🌎

  1. Volkswagen of America’s renaming to ‘Voltswagen’ apparently is fake and is an April Fools’ prank. This ‘news’ surfaced on Mar 29 after an unfinished press release was leaked online. This attempt lit up social media and most, if not all took it seriously as VW has publicly declared and shared its ambitions of dominating the EV game. 

    VW turned out thriving relative to other industries during the pandemic year of 2020. It generated a pre-tax profit of EUR12 bil (USD14.07 bil), down about 36% from 2019 on sales of EUR223 bil, down 12%. It benefited strongly from China’s speedy rebound, where VW generates 40% of its sales from. 

  2. Whilst Volkswagen failed an April Fool’s joke, Xiaomi has unveiled its plans to invest USD10 bil in the coming decade to manufacture EVs. It’s billionaire founder, Lei Jun, announced his intention to lead a new standalone division and spearhead it, which he called his final major startup endeavour. 

    Xiaomi will outsource its car assembly to contract manufacturers, following the same model it uses for its smartphones which it relies on contract manufacturers such as Taiwan’s Foxconn to build its mobile devices though it won’t rely on established automakers as its manufacturing partner. 

  3. If you have adolescent kids in your household, good news for them - Pfizer has announced that its Covid-19 vaccine was 100% effective in a final-stage trial in kids aged 12 to 15. The vaccine is authorised in the US for people 16 and above. In a study involving 2,260 adolescents, the vaccine produced antibodies against the coronavirus that exceeded level seen in vaccinated young adults. 

  4. Deliveroo, the Amazon-backed food delivery company crashed 30% during its listing debut from its opening valuation of USD10.5 bil. It lost more than USD2.7 bil on its first day as a public-listed company, probably amongst the worst first day performance of IPO in recent months. Some nicknamed it as ‘Flopperoo’. Its founder, William Shu, sold off some USD36 mil worth of shares at the opening. His remaining stake of 6.3% lost more than USD140 mil, down from USD618 mil to USD474 mil due to the crash. 

    At least 6 investment firms announced they wouldn’t invest in Deliveroo, citing the lack of full-year profitability, and the reputational and financial risk posed by its on-going reliance on gig-economy riders. 

  5. Coursera, the online education provider, is set to raise USD519 mil in its IPO that gives the company a valuation of USD4.3 bil. This is about 67% higher from its previous fundraising round where it raised USD130 mil at a valuation of USD2.57 bil in mid-2020.

    Some highlights on Coursera:

    1/ 77 mil registered users with 3.6 mil paid users

    2/ Added 30.6 mil new users in 2020, up 3x from 9.2 mil new users in 2019

    3/ Revenue grew to USD293.5 mil in 2020 from USD184.4 mil in 2019. No surprise - Coursera is still loss-making with USD66.8 mil in loss recorded in 2020, up from USD46.7 mil in 2019. 

    4/ main line of business: 

    • direct-to-consumer where interested students can sign up for free or pay for courses

    • enterprise business where businesses, governments and institutions pay Coursera to access courses to offer it to their employees (2,000 companies paying Coursera, including 25% of Fortune 500 companies)

    • degree programmes where it works with universities to offer bachelor’s and master’s degree. 

  6. The world’s largest non-commercial lender? Not the International Monetary Fund (IMF), not the World Bank. It’s China. In the past 2 decades, loans and trade credits extended to the world by China to finance roads, airports and hospitals across Africa, Asia and Latin America amounted to USD1.6 tril, or 2% of global GDP in 2018, compared to near zero in 1998. In just 8 years since 2010, African nations have received USD121 bil in loans from China. 

    Unlike private creditors, Chinese lenders have been a more lenient bunch with African borrowers. Over the past decade, China has restructured and refinanced about USD15 bil of debt in Africa without imposing hefty fines and penalties or seizing assets from borrowers.

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