SeeThruEquity Issues Update on Weyland Tech Inc.

SeeThruEquity Issues Update on Weyland Tech Inc.

NEW YORK, NY / ACCESSWIRE / October 24, 2018 / SeeThruEquity, the leading independent equity research firm focused on smallcap and microcap public companies, today announced it has issued an update note on Weyland Tech Inc. (OTCQX: WEYL).

The report is available here: WEYL Update Note.

We are updating coverage of Weyland Tech Inc. (OTCQX: WEYL, ”Weyland”) following recent results and details related to the company’s spin-off of its AtozPay unit. Founded in 2014, Weyland offers 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. Weyland CEO Brent Suen finalized the AtozPay distribution declaring a special dividend to shareholders of record as of October 12, 2018. In our view, AtozPay 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.

Highlights from the note include:

Weyland announces results, details for AtozPay spin-off
We are updating our coverage on Weyland following recent results and additional details on the spin-off of its Indonesian mobile wallet business AtozPay.

Highlights were as follows:

  • First half revenues rise by 36.5% to $8.8mn. Weyland announced 2Q18 revenues of $4.7mn, which represented 28.8% annual growth from $3.6mn in 2Q17 as well as 12.8% sequential growth from $4.2mn 1Q18.
  • 1H2018 revenues were $8.8mn, up 36.5% versus $6.5mn in the first half of 2017. Gross margins were 87.8% during the quarter and 87.7% for the first half of 2018.
  • Weyland’s GAAP EPS came in at ($0.03) due to increased expenses related to start up and expansion of AtozPay, as well as professional and legal costs related to the upcoming spin-off.
  • AtozPay growth continues, management reiterates outlook. Wyland’s AtozPay subsidiary continues to experience sharp growth in the adoption of its mobile solution. The AtozPay platform had annualized gross transaction volume of $8.6mn in September, with the final week annualized at $11mn after additional stock was added, according to management. This compares to a rate of $5mn during the first week of May. Management is targeting reaching annualized GTV of $100mn within 18 months of launch (end of 2019).
  • AtozPay spin-off declared for shareholders of record as of October 12, 2018. Weyland announced that that the spin-off of its interest in AtozPay would take place in a dividend of private entity Weyland AtoZPay Inc. (WAI) to shareholders of record of October 12, 2018. The distribution date is expected to be November 30, 2018.

Target increases to $5.20 on AtozPay progress and growth
We see Weyland as an intriguing special situation in the technology sector offering exposure to growth opportunities in both global mobile commerce and mobile payments in Indonesia.

Please review important disclosures in the report and at www.seethruequity.com.

About Weyland Tech, Inc.

Weyland Tech is a global provider of mobile business applications. Its 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, the Company 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.

About SeeThruEquity

Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative approach to deliver equity research of microcap and smallcap companies. SeeThruEquity has also been the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion since 2012.

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SOURCE: SeeThruEquity