Society management

Argus Research: Society Pass (Nasdaq: SOPA) – Fair value represents significant advantage over current valuation

NEW YORK, NY, May 23, 2022 (GLOBE NEWSWIRE) – via NewMediaWire – Argus Research Co. (“Argus”) publishes Equity Research Update on Company Pass Inc. (Nasdaq: SOPA).

Click here to see the full stock research update from Argus Research.

Summary:

  • The recent market capitalization of the company close to $40 million is lower than Argus’s unique 2022 year-end revenue run rate forecast of $50 millionwell below the average multiple of more than six for a basket of comparable e-commerce peers.
  • In May 2022, Company Pass published a turnover for the first quarter of 2022 of $445,090representing a growth of more than 4,600% compared to the period of the previous year.
  • From March 31, 2022, Company Pass held almost $31 million in cash on its balance sheet, without any debt. According to Argus, the company is sufficiently capitalized to execute its strong M&A strategy, while retaining the flexibility to limit equity issuance.
  • From March 2022, Company Pass had amassed over 1.6 million registered users and over 5,500 affiliate merchants.
  • Based on Argus’ EV/earnings analysis, Argus arrives at an estimate of fair value for SOPA of $10 per share, well above current levels.

Building a loyalty-driven e-commerce platform in Southeast Asia. Company Pass is an e-commerce company operating in the fast-growing markets of Southeast Asia. The company has built a robust e-commerce platform for consumer goods, luxury fashion, and food and beverage delivery, and provides related software and systems to participating merchants. It is also expanding into other verticals, including telecommunications, digital advertising, travel booking, and food and beverage ordering.

Business model. Society Pass acquires small, high-growth e-commerce businesses at relatively low cost, and expands its user base through a robust ecosystem of products and services. Company Pass plans to integrate these various businesses through a loyalty program called Society Points, which it plans to launch in the second quarter of 2022.

Current portfolio. Its current portfolio is supported by the Leflair platform, which allows local businesses to Vietnam sell high-end domestic and foreign brands. Leflair has more than 3,500 registered brands, primarily in the fashion and accessories, beauty and personal care, and home and lifestyle categories, and has approximately 1.5 million registered users. In February 2022, Company Pass acquired Handycart, a Vietnamese online restaurant delivery app, and Pushkart, a Philippines online grocery delivery app. Company Pass expects Handycart to deliver to 500 restaurants in Hanoi by the end of 2022 and for Pushkart to double its registered user base to over 500,000 and increase app downloads to over 150,000 by 2022.

Significant revenue growth for the next two years. Argus forecasts 2022 revenue of $14 million and 2023 revenue of $38 million, which includes contributions from recent acquisitions, namely Leflair, Pushkart, Handycart and merchant software company #HOTTAB. Argus expects further acquisitions to close throughout 2022, including lifestyle, travel and digital advertising businesses. Aided by the launch of the Society Points program, Argus expects the revenue run rate to be around $50 million by the end of the year.

On Company Pass

Company Pass is a loyalty and data marketing ecosystem that operates multiple e-commerce and lifestyle platforms in its key markets. Its business model is centered on collecting user data through the expected circulation of its universal loyalty points, Society Points. It seamlessly connects consumers and merchants across multiple product and service categories that drive organic loyalty. Since its inception, SoPa has gathered over 1.6 million registered consumers and over 5,500 registered merchants/brands on its platform. It has invested over 2 years in building a proprietary IT architecture with state-of-the-art components to effectively scale and support consumers, merchants and acquisitions on its platform.

Company Pass provides #HOTTABBIZ and #HOTTABPOS merchants – a specialized POS technology solution, comprehensive payment system, loyal customer management, user profile analytics and convenient financial support packages for small and medium businesses .

In addition, SoPa operates Leflair.com, the leading lifestyle e-commerce platform in Vietnam, Pushkart.ph, a popular grocery delivery company in Philippinesand Handycart.vn, a leading online restaurant delivery service based in Ha Noi, Vietnam.

For more information, please visit: http://thesocietypass.com/.

Media contact
Valuable communications for SoPa
sopa@preciouscomms.com

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Source: Incorporated Company Pass

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