NEW YORK, April 25, 2022 (GLOBE NEWSWIRE) -- Diamond Equity Research, a leading equity research firm with a focus on small capitalization public companies has initiated coverage of Guardforce AI Co., Limited (NASDAQ: GFAI, GFAIW). The in-depth 20-page initiation report includes detailed information on the Guardforce AI’s business model, services, industry, valuation, management, and risks.
The full research report is available here. Highlights from the report include:
- Solid Foundation Built over Decades of Operational Execution- With more than four decades of operational execution, the company has acquired a dominant position in Thailand’s cash management and secure logistics market. Guardforce AI commands approximately one-fourth share of the country’s secure logistics market, resulting from its long-term relationship with leading commercial banks and the Bank of Thailand. The legacy business has managed to consistently generate free cash flows creating a solid foundation and supporting the company’s investment objectives.
- Investing in Industries of the Future - With rapid digitization and globalization, businesses are evolving and adapting to modern technologies, including robotics, artificial intelligence, and cloud computing. This has also increased the need for improved cyber-security solutions to mitigate threats arising due to vulnerabilities in modern technology. The company aims to become a truly global integrated security solutions provider and has already announced the initial rollout of robotics services in the US markets. GFAI’s expansion within these industries seeks to magnify the company’s growth, given the multi-billion addressable markets and double-digit industry growth rates.
- Accelerated Growth Aided by Acquisitions and Partnerships - GFAI has been aggressively looking for attractive acquisitions and partnerships to expand its non-cash management business (robotics AI and information security). The company entered the information security business by acquiring a majority stake in Handshake Networking Limited. While under the robotics AI segment, the company recently concluded the deal to acquire Shenzhen Keweien Robot Service Co., Ltd and Guangzhou Kewei Robot Technology Co., Ltd. GFAI also has entered into partnership agreements with a US-based technology system integrator, allowing it to access the lucrative market of the Greater Bay Area and North America. The company’s current cash position of approximately $31 million provides a foundation allowing it to expand its global footprint through acquisitions and partnerships, as it expects to generate 36% of net revenue in 2022 through its inorganic growth strategy.
- Valuation - We have valued the company using Sum of the Parts (SOTP) as our preferred methodology. We believe the market has yet to realize the company’s potential and its ability to grow its non-cash management businesses. Our valuation methodology yielded a per-share value of $2.43 or $97.94 million market capitalization, contingent on successful execution by the company.
About Guardforce AI Co. Ltd.
Guardforce AI Co., Ltd is a global integrated security solution company offering cash solutions and cash handling services. The company recently decided to diversify its business by entering Robotics, AI and Information security business. Guardforce AI Co., Ltd has raised multiple rounds of financing to fund its investment in the industries of the future.
For more information, visit https://www.guardforceai.com/
About Diamond Equity Research
Diamond Equity Research is a leading equity research and corporate access firm focused on small capitalization companies. Diamond Equity Research is an approved sell-side provider on major institutional investor platforms including Factset, Morningstar, and Thomson One.
For more information, visit https://www.diamondequityresearch.com.
Disclosures:
Diamond Equity Research LLC is being compensated by Guardforce AI for producing research materials regarding Guardforce AI Co. Ltd., and its securities, which is meant to subsidize the high cost of creating the report and monitoring the security, however, the views in the report reflect that of Diamond Equity Research. All payments are received upfront and are billed for an annual or semi-annual research engagement. As of 04/25/2022, the issuer had paid us $35,000 for our services, which commenced 02/17/22 and is billed annually. Diamond Equity Research LLC may be compensated for non-research related services, including presenting at Diamond Equity Research investment conferences, press releases and other additional services. The non-research related service cost is dependent on the company, but usually do not exceed $5,000. The issuer has paid us for non-research related services as of 04/25/2022, consisting of $3,000 for presenting at an investment conference. Issuers are not required to engage us for these additional services. Additional fees may have accrued since then. Although Diamond Equity Research company sponsored reports are based on publicly available information and although no investment recommendations are made within our company sponsored research reports, given the small capitalization nature of the companies we cover we have adopted an internal trading procedure around the public companies by whom we are engaged, with investors able to find such policy on our website public disclosures page. This report and press release do not consider individual circumstances and does not take into consideration individual investor preferences. Statements within this report may constitute forward-looking statements, these statements involve many risk factors and general uncertainties around the business, industry, and macroeconomic environment. Investors need to be aware of the high degree of risk in small capitalization equities including the complete loss of their investment. Investors can find various risk factors in the initiation report and in the respective financial filings for Guardforce AI Co. Ltd.
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Diamond Equity Research
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