SeeThruEquity Initiates Coverage on Weyland Tech (WEYL) with a Target Price of $5.00
NEW YORK, NY / ACCESSWIRE / July 23, 2018 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has initiated coverage on Weyland Tech Inc. (OTCQX: WEYL) with a price target of $5.00.
The report is available here: July 2018 Initiation Report.
We initiate coverage of Weyland Tech Inc. (OTCQX: WEYL, ”Weyland”) with a price target of $5.00. Founded in 2014, Weyland is focused on the development of mobile commerce enablement applications for small businesses and consumers, primarily in the Greater Southeast Asia (GSEA) market. The company has two business units: 1) CreateApp, which is a subscription-based, platform-as-a-service (”PAAS”) business that provides mobile commerce solutions for small and medium sized merchants; and 2) AtozPay, which is a mobile wallet that enables consumers and small merchants to process and store payments with their mobile device using a digital account. In May 2018, Weyland CEO Brent Suen announced that the company was investigating the potential spin-out of its mobile wallet segment, AtozPay, which appears to have the potential to create substantial value if it receives market multiples for a pure mobile commerce business in the Indonesian market. We view Weyland as an intriguing special situation in the technology sector, with what appears to be a defensible valuation on its core CreateApp platform business and significant potential for upside if it can execute its plans for rapid growth in its emerging mobile wallet business.
CreateApp mobile platform growing by enabling mobile commerce
The CreateApp mobile commerce platform currently accounts for the majority of Weyland’s revenues, which were $15.6mn in 2017 and expected to be greater than $20mn in 2018. The CreateApp unit has grown quickly by targeting the large number of small and medium-sized businesses in Greater Southeast Asia (GSEA) that are seeking to establish a mobile commerce presence without investing significant in-house IT resources. Through direct sales and partner-based white label programs, CreateApp is now available in 14 languages in Asia, parts of Europe and North America. Weyland is expecting significant growth for this segment again this year, with recent strategic partner wins including DPEX in Indonesia, BTG in Thailand, and Augicom/Orange in France.
AtozPay offers exposure to high growth Indonesian e-wallet market
Launched in December 2017, Weyland’s AtozPay mobile wallet service recently completed a successful beta phase in Indonesia. From December 2017 to May 2018, AtozPay was able to grow annualized gross transaction volume (GTV) from inception to more than $6mn in May. AtozPay also acquired a provisional license issued by BadanKoordinasiPenanamanModal (BKPM), which allows the company to operate an electronic payments business in Indonesia. AtozPay appears positioned to target the large and extremely fragmented market for mobile wallets in Indonesia, a country of more than 260mn that is saturated with mobile phones but where fewer than 10% of adults have a debit or credit card, according to the World Bank. Weyland is commencing a broader commercial launch of AtozPay, with a goal of reaching $30mn in GTV run-rate by the end of 2018 and $80mn by the end of 2019 as it seeks to establish its initial footprint.
Initiate coverage with a price target of $5.00
We initiate coverage of Weyland with a price target of $5.00. We see the company as an intriguing special situation in the technology sector combining exposure to growth opportunities in both global mobile commerce and mobile payments in Indonesia. If achieved, the target represents a value of 4.4x 2018E gross as-if-consolidated revenues of $33.3mn (comprising $22.5mn from CreateApp and $10.8mn from AtozPay).
Please review important disclosures in the report and on our website at www.seethruequity.com.
About Weyland Tech Inc.
Weyland Tech Inc (”Weyland”) is a global provider of mobile business applications. It’s CreateApp platform offers a mobile presence to businesses in emerging markets, with partnerships on 3 continents and growing. This DIY mobile application platform, offered in 14 languages with over 35 integrated modules, enables small and medium sized businesses (”SMB’s”) to create native mobile applications (”apps”) for Apple’s iOS and Google Android without technical knowledge or background, empowering SMB’s to increase sales, reach more customers and promote their products and services in an easy, affordable and efficient manner.
In May 2018, Weyland expanded its portfolio to fintech applications with the launch of its AtozPay mobile payments platform. The mobile wallet launched in the world’s 4th most populous country, Indonesia, and is already experiencing rapid growth in transactions taking place on the platform.
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