WITH Kuala Lumpur-based Netccentric Ltd (NCL) closing at 7.4 Australian cents per share yesterday (Aug 3) on the Australian Securities Exchange (ASX), there’s potential for the share price to double in the future.
This is according to a research report by Spark Plus Research (Australia) Pty Ltd, which suggests that NCL is potentially worth 15 Australian cents per share.
NCL is a pioneer and leading provider of end-to-end social media influencer marketing solutions.
The company provides strategy and planning, video and content creation, influencer matching, social commerce, and performance reports to clients mostly in Malaysia, Singapore and Taiwan.
NCL is today majority-owned by entrepreneur Ganesh Kumar Bangah, who has a 77% equity interest in the company. Ganesh is also currently the National Tech Association (PIKOM) honorary chairman.
“This assumes a 21.9% growth in revenue for FY2022, an estimated cash position of S$5.5 mil (RM17.77 mil) and AUD/SGD rate of 1.04. With that said, if NCL unlocks a greater addressable market with its regional expansion plans, an upward re-rate is necessary,” projected the research report.
Spark Plus Research further observed that after a management restructuring in 2020, NCL has been on a streak of innovation spurring growth.
In late 2020, NCL had introduced Nuffnang Live Commerce (NLC) to leverage on the shift towards online sales and virtual interactions due to the pandemic lockdowns.
Leveraging blockchain tech
Spark Plus described the trend as “an emerging market and door to unlimited opportunities”.
“In its first year post-launch, the live commerce division completed more than 61,000 orders with more than S$4.3 mil (RM13.89 mil) of total gross merchandise value (GMV) transacted and achieved another 294% year-on-year (yoy) growth in GMV for 1Q FY2022,” the research house pointed out.
Spark Plus also noted NCL’s intention to explore the non-fungible tokens (NFTs) and the metaverse space.
Just last week, NCL announced that it has finalised a joint-venture with RedSquare Technologies Sdn Bhd (RSQ) which would see the progressive emergence of NFT Technologies Sdn Bhd (NFT Tech).
“NFT Tech’s platform will empower brand owners to issue NFTs in collaboration with influencers in a cost-efficient and user-friendly manner,” NCL said in a separate statement.
The NFTs issued by the platform will provide real-world utility and applications, enabling consumers to earn rewards and enjoy unique experiences with their favourite influencers.
For brands, the tokens will provide opportunities to increase revenue, build loyalty and gain access to Web 3.0 analytics.
Revenue generation is planned through a two-pronged business model: enterprise managed services and a creator software-as-a-service (SaaS) application.
According to Ganesh, the group’s transition into becoming a Web 3.0 creator platform is set to generate value for all its stakeholders, especially brands and influencers. – Aug 4, 2022
