NEW YORK, Feb. 24, 2020 (GLOBE NEWSWIRE) -- Argus Research, an independent investment research firm, has launched Equity Research Report coverage on Molecular Data Inc. (NasdaqCM: MKD)
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Highlights, as conveyed by Argus Analyst Steve Silver, include:
COMPANY HIGHLIGHTS
MKD: Connecting China’s Chemical Industry Value Chain
- In our view, Molecular Data has assembled a comprehensive network that can capture value across multiple previous pain points in China’s fragmented chemicals industry.
- After several years of organically building platform capabilities to include financial services, warehousing, logistics and software as a service (SaaS) offerings, Molecular Data should now be able to diversify its revenue stream beyond its core chemical direct e-commerce sales. This should lead to enhances profit margins and, ultimately, sustainable profitability.
- In December 2019, Molecular Data completed an initial public offering that yielded gross proceeds of approximately $62 million. As a result, we view the company as well positioned to invest in its integrated e-commerce platform with new higher-margin services, and to pursue the acquisition of new capabilities and services globally.
- Since the IPO, the MKD shares have traded at a steep discount to the 1X-2X price/sales multiple typically associated with chemical industry players and well below 1X our revenue estimate for 2020. We expect this discount and disconnect from its improving fundamentals will start to abate as Molecular Data progresses towards achieving competitive operating margins and profitability. Based on our price/sales valuation, we arrive at a fair value estimate of $12 per ADS.
INVESTMENT THESIS (click here to view full Argus Equity Research Report & Investment Thesis)
About Molecular Data Inc. (NasdaqCM: MKD) www.molbase.com
Molecular Data Inc., through its subsidiaries, operates in the chemical e-commerce business in the People's Republic of China. The company operates a technology-driven platform that connects participants along the chemical value chain through integrated solutions. It delivers e-commerce solutions, financial solutions, warehousing and logistics solutions, and a SaaS suite intended to solve pain points for participants in the traditional chemical industry. The company was founded in 2013 and is headquartered in Shanghai, the People's Republic of China.
MKD IPO’d on Nasdaq December 30, 2019. Boustead Securities LLC, AMTD Global Markets Limited, and Fosun Hani Securities Limited acted as the representatives of the underwriters jointly. Boustead Securities, LLC. served as Sole U.S. Managing Underwriter, the IPO raised US$61.9 million via American Depositary Shares (“ADS”).
MKD Investor Relations Contacts:
In China:
Molecular Data Inc.
Investor Relations
Tel: +86-400-6021-666
E-mail: Investor@molbase.com
The Piacente Group, Inc.
Emilie Wu
Tel: +86-21-6039-8363
E-mail: molbase@tpg-ir.com
In the United States:
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: molbase@tpg-ir.com
About Argus Research Corp. Headquartered in NYC, Argus Research (www.argusresearch.com) is a leading independent equity research firm (est. 1934) ̶ providing fundamental and quantitative research coverage on more than 1,500 companies across all 11 sectors of the S&P 500, as well as macroeconomic and equity market forecasts, thematic research, model portfolios and pre-IPO research. In addition, Argus has recently committed to providing a sponsored research solution for small & mid-cap companies seeking coverage. Our Asset Management, Bank Trust, sell-side advisor and self-directed investor clients value Argus’s proprietary equity research methodology, analysis and commentary. Argus’s Equity Research/earnings estimates are available on major research / earnings estimate aggregator platforms, including Bloomberg, Thomson Reuters, Factset and S&P Global.
For more Information re: Argus Research Services please contact:
Darrell Stone
646-747-5438
dstone@argusresearch.com
Argus Research Co. has received a flat fee from the company discussed in this report as part of a Sponsored Research agreement between Argus and the company. No part of Argus Research’s compensation is directly or indirectly related to the content of this assessment or to other opinions expressed in this report. Please refer to the full Argus report and the disclaimer for complete disclosures.