Greenridge Global believes the market is not fairly valuing SoPa’s assets at this time and believes listing some of its subsidiaries provides greater transparency to SoPa’s overall business model.
NEW YORK, November 2, 2023 (ACN Newswire): Greenridge Global LLC (“Greenridge Global”) initiates equity research coverage on Society Pass Inc. (Nasdaq: SOPA) (“SoPa” or the “Company”), Southeast Asia’s (SEA) next generation, data-driven, loyalty, fintech, and e-commerce ecosystem.
Click here (on the Society Pass website) to view the full Greenridge Global Equity Research Report.
Summary Points:
- Valuation: Greenridge Global initiates coverage with a target price based on an EV/Revenue multiple of roughly 3 times the 2025 revenue estimate of $33.3 million, discounted back one year at 20%. The mix of social and influencer advertising and a loyalty-driven eCommerce ecosystem presents a unique opportunity to capture this growth and collect an abundance of data that can be monetized down the road. Greenridge Global believes the market is not fairly valuing SoPa’s assets at this time and believes listing some of its subsidiaries provides greater transparency to SoPa’s overall business model.
- SEA is an ideal market for SoPa: SoPa is uniquely positioned to capitalize on the young and rapidly growing digitally connected population in SEA, which is poised to see among the highest GDP growth rates over the next handful of years while having arguably less geopolitical risk than other countries.
- Loyalty Wallet to Drive Revenue Growth: The company launched its Society Points Loyalty Wallet in June 2023 and should have all of its subsidiaries linked by the end of 2023, which should boost sales across businesses, increase retention, and offer unique advertising opportunities to the 3.3 million users of its companies.
- Thoughtful Media Expected to See Substantial Revenue Generation: Thoughtful Media is in the early stages of rapid expansion through strategic bolt-on acquisitions and opening new regional offices, all of which should result in substantial revenue growth in the next few years.
- SEA Unbanked Population Offers Growth Potential for SoPa: Roughly 70% of Southeast Asia’s population is unbanked or underbanked, making the payment options of the Loyalty Wallet a starting point for the company to deliver different financial service options to its users.
- Acquisitions to Drive NusaTrip Growth: The recent VLeisure acquisition and early rollup stages of traditional travel agencies, coupled with the mobile access Gorilla’s eSIM brings, should turn NusaTrip into a holistic travel booking destination for the SEA region, which has seen rapid increases in travel post-Covid.
- Expected Capital Markets Activities in 2024 to Unlock Value: SoPa is in the midst of listing two of its key assets, Thoughtful Media and NusaTrip, which should enhance the valuation of these assets as well as provide for more diverse funding and M&A options.
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