SeeThruEquity initiated coverage of Moxian, Inc. (NASDAQ: MOXC) on February 8, 2017, projecting that the China-based company will achieve annual revenues of more than $40 million by FY2019 alongside EBITDA of $17.456 million. The investment research firm set a price target of $4.50 for the company’s stock (http://nnw.fm/Kb4Rn).
Moxian is focused on the $48 billion (1H2017) O2O market, according to the SeeThruEquity report, quoting investment materials from the company. Moxian’s platform, Moxian+, targets small- and medium-sized businesses in the O2O market in China. Moxian offers consumers the ability, through mobile, social media, and online channels, to purchase online and pay offline. It is growing in popularity in China, especially among younger and higher educated demographic groups.
The commercial for-profit launch of Moxian+ is anticipated in March 2017, according to the SeeThruEquity report. It also says that Moxian plans to have 80 sales team members by the end of June 2017, largely split between the company’s offices in Shenzhen and Shanghai. By the end of 2017, the report states, the company plans to have 100 sales team members as it also expands into Guangzhou.
“The target of $4.50 implies a market capitalization of approximately $300 mn, which represents a multiple of 12x Moxian’s 2018 revenue outlook of $25 mn,” the report states. SeeThruEquity assumes revenue streams from mobile advertising, premium service licensing agreements and merchant fees from transactions.
SeeThruEquity projects that 2017 will be a pivotal growth year for Moxian as it expands its sales force, grows into more cities in China and launches Moxian+ with premium paid services and a mobile app. The research company said it was “intrigued” by the O2O market growth in China. It also found that Moxian’s strategy of focusing on small- and medium-sized businesses and social media through mobile apps and online is a way for the company to grow its customer base “with proper sales execution.”
The report noted that Moxian+ is currently non-paid, but it has already attracted 31,600 businesses and more than 300,000 consumers. The platform is expected to transition to a paid version this year. The company currently has two apps: Moxian+ Business for vendors and Moxian+ User for consumers. The business app enables firms to design ad campaigns for consumers who may have an interest in their products. The social app lets consumers connect with other individuals with similar interests.
For more information, visit www.Moxian.com
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