Temasek Holdings had chalked up a 25% gain for its investment portfolio in 2020, compared to a year ago.
The surge was the highest achieved by the Singapore state-owned investment company in over a decade.
Temasek’s annual review also provided details on how the fund invests and the structural trends it looks out for when making its investments.
Also included on its website was a list of investments in both listed and unlisted companies.
Here are five companies Temasek invested in that are worth a second look.
Mastercard (NYSE: MA)
Temasek has a long list of investments in the financial sector, one of which is Mastercard.
The company is a leader in the global payments space, and as of 31 March 2021, had a total of 2.8 billion cards in issue.
The business was initially impacted by the fall in transactions resulting from lockdowns due to the pandemic.
However, payment volumes have since recovered strongly as restrictions are eased in many parts of the world.
Payment transactions for March 2021 were 20% higher year on year and were even 22% higher than the levels logged in 2019 (i.e. before the pandemic).
As a result, net revenue for the fiscal 2021 first quarter (1Q2021) rose by 4% year on year to US$4.2 billion.
Net profit rose 8% year on year to US$1.8 billion.
There could be more good news soon.
Mastercard has reported encouraging numbers in June, with US retail sales growing 11% year on year.
Notwithstanding the further worsening of the pandemic, the company should continue to see an improvement in payment volume, revenue and net profit.
PayPal (NASDAQ: PYPL)
PayPal is a payments platform that connects merchants and customers.
The pandemic has led to an acceleration in online adoption, helping to fuel an increase in the uptake of businesses utilising digital payments.
As a result, PayPal reported that total payment volume (TPV) surged by 50% year on year to US$285 billion for 1Q2021.
Revenue grew 31% year on year to US$6 billion.
The quarter was also the strongest first-quarter result the company had ever reported.
The company added 14.5 million net new active accounts and ended the quarter with 392 million active accounts.
DBS Group (SGX: D05)
DBS is one of Singapore’s three largest local banks and offers a comprehensive range of banking services.
The lender has proven resilient despite facing tough economic conditions since the middle of last year.
For 1Q2021, the bank reported a record net profit of S$2 billion as its fee income surged and allowances were written back.
Tencent (SEHK: 0700)
Tencent is a technology conglomerate that offers a range of services including gaming, chat programs, online advertising and cloud services.
Total revenue for the company increased by 25% year on year in 1Q2021, with broad-based revenue growth across all its divisions.
Operating profit rose by 20% year on year to RMB 42.8 billion while net profit increased by 22% year on year to RMB 33.1 billion.
Tencent publishes popular games such as PUBG Mobile and Peacekeeper Elite, which led to a 17% year on year revenue growth in its value-added services segment.
Meanwhile, online advertising revenue also saw a 23% year on year jump as advertising demand increased from education and e-commerce platforms.
Finally, its finTech and business services division saw a 47% year on year surge in revenue as mobile payment usage increased.
The company is stepping up its investments in games development to focus on large-scale, high-production-value games that appeal to a wider audience.
Tencent will also commission production to further expand its intellectual portfolio content library.
DoorDash (NYSE: DASH)
DoorDash operates an online food ordering and delivery platform in the US.
The company has the largest market share of meal deliveries in the US, at 56% for June 2021.
At a distant second place is Uber Eats with a 23% market share, operated by ride-hailing company Uber (NYSE: UBER).
In third place is Grubhub, which was recently acquired by Just Eat Takeaway.com (AMS: TKWY), at 16%.
Revenue for 1Q2021 nearly tripled year on year to US$1.1 billion, with total orders jumping from 103 million a year ago to 329 million this quarter.
Gross order value (GOV) hit a new quarterly record of US$9.9 billion.
DoorDash is slowly pivoting to non-restaurant deliveries to diversify its revenue sources, and orders from such categories grew 40% quarter on quarter and now form 7% of total orders.
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Disclaimer: Royston Yang owns shares of PayPal, Mastercard and DBS Group.