SeeThruEquity Issues Update on UMeWorld Limited (UMEWF) with a Price Target of $1.00
NEW YORK, NY / ACCESSWIRE / October 11, 2016 / SeeThruEquity, the leading independent equity research firm focused on smallcap and microcap public companies, today announced it has issued an update note on UMeWorld Limited (UMEWF).
The report is available here: UMEWF Initiation Report.
With headquarters in Hong Kong, UMeWorld Limited (OTCQB: UMEWF, "UMeWorld") is an online educational company focused on the K-12 market in China. The company Through its flagship application, UMFun, UMeWorld provides a cloud-based, proprietary tool for the education market. UMFun is an online and mobile technology platform that offers adaptive learning and assessment. The tool has the capability to analyze and assess intelligently, adapting to a student's performance, while personalizing the delivery of proprietary educational content in accordance with the student's learning needs.
Highlights from the update note are as follows:
Significant progress since our initiation
UMeWorld has continued the development of its technology since SeeThruEquity initiated coverage on the company in 2014. Shares have risen from $0.23 when we initiated coverage in 2014 to the recent close of $0.34, and we see a significant potential catalyst in coming months as the company begins to generate revenue with the initial commercial launch of its product. The company initially launched a free app as part of the China Mobile K-12 Education platform, with management focused on growing an initial audience of parents, students and teachers. The company has been homing in on what it believes is a compelling premium offering for the Chinese K-12 market, which will also be distributed ad supported by an impressive distribution partner in China Mobile (CHL), the world's largest mobile service provider. UMeWorld is initiating this commercial launch currently, initially targeting five provinces with more than 16mm K-12 users on China Mobile's platform.
Product launches set the stage for revenue
UMeWorld is in the midst of launching its UMFun product suite in several provinces, with distribution enabled through China Mobile's K-12 platform, which management has stated has over 90mn paying users. The UMFun platform is one combines gamification, adaptive learning and big data analysis in order to provide a fun and personalized learning tool. The company has been targeting a short term goal of 10mn users on the UMFun platform, and in a September 9, 2016 press release UMeWorld provided an update that it had accumulated a user base of 9.2mn students, parents and teachers.
New SIS offering expands potential
The UMeWorld has also launched a more robust solution, UEXiao. UEXiao combines student information (SIS) management with learning management, and will be distributed through strategic partnerships with China Mobile and The South China Normal University to target broad adoption among K-12 schools. UmeWorld management believes that China Mobile's status as a state-sponsored entity may help the company gain distribution into schools. Also management has designed UEXiao to support the Ministry of Education's K-12 target education initiative of universal education digitalization by 2020E. UEXiao's core tools, which include 45+ core SIS/LMS functions, will be offered at no charge to schools, with paid add-on services, reporting and features available by subscription.
Raising price target to $1.00 for UMEWF
We are updating the price target for UMeWorld to $1.00. While it has taken longer than our initial view for the company to begin generating revenues, management believes it will be reaching this milestone by the end of calendar 2016 and we look forward to initial results. If achieved the price target of $1.00 would represent potential upside of 156.4% from the recent price of $0.39. In our view the company represents a high risk, high potential reward company targeting the massive market opportunity for online education solutions in the K-12 space in China.
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About UMeWorld Limited
UMeWorld is China's leading education technology company with a focus on the K-12 education market. UMFun, the Company's K-12 flagship product, is China's first K-12 adaptive learning and assessment platform that is proven to accelerate student learning in a fun and engaging manner. UMFun's off-school version is made available to Chinese K-12 students through China Mobile, the world's largest mobile service provider by network scale and subscriber base, serving over 823,000,000 customers.
Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative business model for equity research that is not paid for and is unbiased. SeeThruEquity is the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion.
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