☕️ Warren Buffett's annual letter is out

Pokemon is more valuable than Star Wars and Harry Potter. Ambank fined billions for its 1MDB scandal. Legendary comedy actor, Ng Man Tat (Shaolin Soccer football coach), has died at 70.

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1. MARKET SUMMARY


2. NUMBERS AT A GLANCE

RM2.83 billion — the settlement amount to be paid by AmBank over 1MDB corruption scandal. Its market cap as of Friday is RM9.52 billion. The amount is close to 30% of its market cap.

USD100 billion — the estimated all time sales of Pokemon franchise, making it more valuable than Star Wars (USD68.7 billion) and Harry Potter (USD32.2 billion) combined. The franchise celebrates its 25th anniversary over the weekend.

USD10,000 — the money an average Airbnb host makes in a year, according to Airbnb CEO Brian Chesky.


3. COVID-19 SUMMARY


4. IN MALAYSIA 🇲🇾

  1. Employee Provident Fund (EPF) announced 5.2% dividend for 2020, a tinge below the 5.45% for 2019. The fund’s total investment assets hit RM998 billion as at end 2020 but the outgoing CEO remains wary as 30% of its members might withdraw almost all of their savings from Account 1 while another 60% or 3 million members “have or will use up all savings in Account 2.”

    RM130 billion has been set aside for i-Sinar Account 1 withdrawals (RM90b), i-Lestari Account 2 withdrawals (RM20b), reduced contribution rate (RM13.6b) and deferred contributions from employers (RM85mil)

    EPF outperformed Amanah Saham Berhad (ASB) which paid 4.25 cents per unit and an additional bonus of 0.75 sen for the first 30,000 units.

  2. Our national treasure, Petroliam Nasional Berhad (Petronas) posted its first-ever annual loss of RM21 billion for FY20 mainly due to a kitchen sinking exercise of RM31.5 billion impairment charged on assets. However, EBITDA remained strong at RM55.3 billion.

  3. The first batch of Sinovac’s Covid-19 vaccine, CoronaVac has arrived in the country over the weekend, expected to be processed into 300,000 doses. Malaysia will be getting 14 million doses of the CoronaVac which will cover about 22% of the population. The vaccine is pending approval from the National Pharmaceutical Regulatory agency.

  4. RM10,000 is the price to pay when you breach movement control order (MCO) regulations beginning March 11, 2021 onwards under the new Emergency (Prevention and Control of Infectious Diseases, Amendment) Ordinance 2021. Oh, not withstanding possible jail sentence of up to seven years. For companies, the fine could be as high as RM50,000.

  5. The world’s biggest glove manufacturer, Top Glove Corp Bhd is looking to raise RM7.7 billion via issuance of up to 1.5 billion news shares in to be listed in Hong Kong Stock Exchange. Bulk of the proceeds, RM4.61 billion will be used for expansion of production capacity and developing a data-driven manufacturing system.

  6. Bank Negara Malaysia (BNM) was alerted by Singapore Police’s Commercial Affairs Department (CAD) back in 2015 and 2016 on suspicious transactions involving a company owned by former BNM governor, Tan Seri Dr Zeti Akhtar Aziz’s husband and son from accounts linked to Jho Low. Late last year, the governor denied claims about her family receiving 1MDB money.

  7. The franchise owner of KFC and Pizza Hut, QSR Brands (M) Holdings Bhd has appointed Tan Sri Jamaludin Ibrahim as the chairman effective today. Jamaludin’s last executive position was at Axiata Group Bhd when he retired on December 31, 2020.

  8. eCurve Shopping Mall in Kota Damansara is another unfortunate victim of the Covid-19 pandemic as the management has informed its tenants that the mall will be be closing permanently effective March 31, 2021.


5. AROUND THE WORLD 🌎

  1. Singapore Press Holdings (SPH) announced that it owns 0.1% indirectly of Coupang, the South Korean e-commerce giant that has filed for a listing. It invested USD3.9 million through a special purpose vehicle back in 2014 and should Coupang fetch a valuation of USD50 billion, its stake would be worth USD50 million, making a return of 12.8x over 7 years. 

  2. Legendary Hong Kong actor, Ng Man Tat, died of liver cancer on Saturday at the age of 70. Many wouldn’t know him by his name but could recognise him easily. He appeared many times in various of Stephen Chow’s movies as his main supporting actor (ie. the coach in Shaolin Soccer).

    Stephen Chow and Ng Man Tat reportedly fell out in 2004 as Stephen took Man Tat’s lead actor role in the movie ‘Kung Fu Hustle’. 

  3. Beyond Meat, the plant-based meat maker announced that it signed a multi-year supply deal with McDonald’s and Yum! Brands, owner of KFC and Pizza Hut. It will be McDonald’s preferred global supplier for its McPlant Burger. These 2 companies will also develop other menu items like plant-based chicken, pork and eggs. Beyond Meat also supplies Starbucks and Dunkin’ Brands. 

    It reported a 3.5% increase in sales to USD101.9 million  in the quarter ending 31 Dec, whilst losses widened to USD25.1 million from USD452k as the coronavirus lockdown in the past 2 quarters have hurt sales to restaurants. Its market cap is USD9.11 billion

  4. The US Food & Drug Administration (FDA) has approved Johnson & Johnson’s one-dose Covid-19 vaccine for emergency use, making it the 3rd vaccine approved in the US. The first batch of nearly 4 million doses will be distributed next week, 20 million doses by the end of March and 100 million doses by the end of June. 

  5. Warren Buffett released his annual letter to Berkshire Hathaway’s shareholders on Saturday. Download the letter here.

    Some highlights from the annual letter:

    1/ Berkshire spent USD24.7 billion in 2020 to buy back 5.2% of its shares, which ‘increased your ownership in all of Berkshire’s businesses by 5.2% without requiring you to so much as touch your wallet’.

    2/ Cash fell by 5% to USD138.3 billion.

    3/ There are 4 jewels in Berkshire’s many assets and businesses namely its property and casualty insurance operations, railroad operator Burlington Northern Santa Fe, Berkshire Energy (91% stake) and 5.4% stake in Apple. Berkshire owns 908 million shares of Apple worth USD120 billion, with an initial outlet of USD31.1 billion

    4/ Buffett acknowledged that Berkshire overpaid for its USD33 billion acquisition of Precision Castparts, a maker of aircraft parts. Berkshire took USD11 billion in asset write-downs, largely from Precision Castparts. 

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