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LGIQ: Capitalizing on the Growth in Mobile and Digital Commerce in the US and Asia

11/23/2020

By Lisa Thompson

OTC:LGIQ

READ THE FULL LGIQ RESEARCH REPORT

Today, we initiated research coverage on Logiq, Inc. (OTC:LGIQ). Logiq (fka Weyland Technologies) is a provider of a SaaS platform for small businesses to create their own mobile app for use by consumers, as well as a digital marketing platform to help businesses target potential customers. The former operates internationally while the latter serves US customers. We expect the stock valuation to increase through a right sizing of the legacy business and growth in the newly acquired digital marketing businesses, as well as its new fintech venture in mobile lending, combined with margin expansion.

Logiq changed its name to better reflect its current eCommerce SaaS product offerings for businesses. Its revenues are reported in two business segments named AppLogiq and DataLogiq. AppLogiq is a platform used by a business to create a mobile app to transact eCommerce on a smartphone combined with other services, while DataLogiq is a Martech (marketing technology) platform used to digitally market products to consumers. The first operates primarily internationally and more specifically in Asia and the second serves customers in the US.

Logiq revamped its legacy business model for AppLogiq and has eliminated low margin partnerships in favor a much higher margin structure that is expected to show profits in 2021. It also recently created a joint venture to provide a fintech platform to facilitate loans to consumers and small businesses (SMBs) in Indonesia and could provide considerable revenues in 2021.Its alpha testing is already in progress.

In January 2020, Logiq bought PUSH Interactive for $25 million in stock. Combined with newly purchased Fixel the products they sell comprise the segment of the company named DataLogiq. This segment is rapidly growing and could account for 77% of total revenues next year up from 38% in 2020 and even more of the gross margin.

DataLogiq should benefit from the end of the use of cookies in 2022 to track consumers. Its products not only function without cookies, but also can provide excellent cost savings on ad spending for brands.

The company has applied to list on the Canadian NEO exchange and from there will seek a NYSE exchange listing making the stock more marketable to both Canadian and US investors.

Versus other companies in its space, Logiq is undervalued. It currently trades at $98 million enterprise value or 2.6 times estimated 2020 sales of $38 million. Its peers trade at blended 12.5 times.

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