Maxim: Society Pass (Nasdaq: SOPA) – Compelling Valuation; Positive on Organic Growth & M&A; Raises Revenue Targets for 2023 and 2024
14 8월 2023 - 9:30PM
via NewMediaWire -- Maxim Group LLC (“Maxim”) issues research
report on
Society Pass Inc. (Nasdaq: SOPA)
(“SoPa”), Southeast Asia’s (SEA) next generation,
data-driven, loyalty, fintech and e-commerce ecosystem.
Click Here (on Maxim research website) or
Here (on Society Pass website) to view the full
Maxim research report.
Summary Points:
-
Diversification – SOPA started 2022 with just
F&B (food & beverage) and Leflair (lifestyle) and now has 6
verticals. The company has also expanded to 5 countries; Singapore,
Vietnam, Philippines, Indonesia, and Thailand. Maxim believes there
are significant cross selling opportunities. Specifically, Maxim
believes Thoughtful Media can market the company's other brands and
the lifestyle business can be expanded geographically. Maxim has a
positive view on the SEA market due to increasing mobile and
ecommerce penetration, younger populations, travel coming back, and
the opportunity to consolidate smaller companies. The acquisition
of Inetindo creates additional expansion opportunities in other
geographies and other branded products to be sold, and can increase
the subscriber base that can be deployed to the potentially highest
profit margin business of Society Points (loyal program).
- Acquisitions –
Acquisitions have diversified revenue streams to include Apple
distribution stores, online advertising, travel/hotel ticketing,
and telecom while expanding geographies in SEA. The Apple
distribution stores acquisition was the largest acquisition to date
in terms of revenue, with the potential to expand geographically
and add users for its Loyalty program.
- Cashflow Positive
– Management is forecasting to be cash flow positive at some point
in 2H23.
- Healthy balance
sheet – SOPA ended 2Q23 with unrestricted cash of $10.8M
(close to the entire market cap of SOPA), slightly down from $13.8M
at the end of 1Q23, and no material amount of debt. 2Q23 cash flow
from operations was an outflow of ($2.9M). With expense reduction
plans and newer businesses, along with the launch of the Loyalty
program, Maxim expects the cash burn to decline and that current
levels of cash should be sufficient to fund organic growth through
2024.
- Raise Revenue
Targets – Maxim projects revenue to increase from $5.6M in
2022, to $16.5M ($15.0M prior) in 2023, up 194% y/y, with an
adjusted EBITDA loss of ($11.0M) ($7.7M prior). For 2024, Maxim
projects revenue of $44.3M ($25.1M prior), up 168% y/y.
- Compelling
valuation/Reiterate Buy – Maxim targets share price to
increase to $1.50. SOPA trades at an EV/revenue multiple of 0.1x
Maxim’s 2024 revenue estimate vs. the peer average of 2.4x. Maxim’s
$1.50 price target is based on its 10-year DCF analysis, which
utilizes a 22% discount rate, 13x terminal multiple, and 3%
terminal growth rate, equating to 0.7 x 2024 revenue estimate.
Maxim’s positive outlook is supported by the attractive SEA markets
and opportunities to consolidate smaller companies.
About Society Pass Inc.
Founded in 2018 as a data-driven loyalty, fintech and e-commerce
ecosystem in the fast-growing markets of Vietnam, Indonesia,
Philippines, Singapore and Thailand, which account for more than
80% of the SEA population, and with offices located in Angeles,
Bangkok, Ho Chi Minh City, Jakarta, Manila, and Singapore,
Society Pass Incorporated (Nasdaq:
SOPA) is an acquisition-focused holding company operating
6 interconnected verticals (loyalty, digital media, travel,
telecoms, lifestyle, and F&B), which seamlessly connects
millions of registered consumers and hundreds of thousands of
registered merchants/brands across multiple product and service
categories throughout SEA.
Society Pass completed an initial public offering and began
trading on the Nasdaq under the ticker SOPA in November 2021.
SoPa acquires fast growing e-commerce companies and expands its
user base across a robust product and service ecosystem. SoPa
integrates these complementary businesses through its signature
Society Pass fintech platform and circulation of its universal
loyalty points or Society Points, which has entered beta testing
and is expected to launch broadly at the beginning of 2023. Society
Pass loyalty program members earn and redeem Society Points and
receive personalised promotions based on SoPa’s data capabilities
and understanding of consumer shopping behaviour. SoPa has amassed
more than 3.3 million registered consumers and over 650,000
registered merchants and brands. It has invested 2+ years building
proprietary IT architecture to effectively scale and support its
consumers, merchants, and acquisitions.
Society Pass leverages technology to tailor a more personalised
experience for customers in the purchase journey and to transform
the entire retail value chain in SEA. SoPa operates Thoughtful
Media Group, a Thailand-based, a social commerce-focused, premium
digital video multi-platform network; NusaTrip, a leading
Indonesia-based Online Travel Agency; VLeisure, Vietnam’s leading
provider of hotel management and payment solutions; Gorilla Global,
a Singapore-based, mobile network operator; Leflair.com, Vietnam’s
leading lifestyle e-commerce platform; Pushkart.ph, a popular
grocery delivery company in Philippines; and NextGen Retail, a
Indonesia-based e-commerce platform.
For more information on Society Pass, please visit:
Website at https://www.thesocietypass.com or
LinkedIn at https://www.linkedin.com/company/societypass or
Facebook at https://www.facebook.com/thesocietypass or
Twitter at https://twitter.com/society_pass or
Instagram at https://www.instagram.com/societypass/.
Cautionary Note Concerning Forward-Looking
Statements
This press release may include “forward-looking statements,”
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements other than statements of historical fact
included in this press release are forward-looking statements. When
used in this press release, words such as “anticipate”, “believe”,
“estimate”, “expect”, “intend” and similar expressions, as they
relate to us or our management team, identify forward-looking
statements. Such forward-looking statements are based on the
beliefs of management, as well as assumptions made by, and
information currently available to, the Company’s management.
Actual results could differ materially from those contemplated by
the forward-looking statements as a result of certain factors
detailed in the Company’s filings with the SEC. All subsequent
written or oral forward-looking statements attributable to us or
persons acting on our behalf are qualified in their entirety by
this paragraph. Forward-looking statements are subject to numerous
conditions, many of which are beyond the control of the Company,
including those set forth in the Risk Factors section of the
Company’s registration statement and prospectus relating to the
Company’s initial public offering filed with the SEC. The Company
undertakes no obligation to update these statements for revisions
or changes after the date of this release, except as required by
law.
Media Contact:Rokas SidlauskasChief
Marketing Officer
rokas@thesocietypass.com
Society Pass (NASDAQ:SOPA)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Society Pass (NASDAQ:SOPA)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024