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NEW YORK, NY / ACCESSWIRE / October 25, 2018 / Diamond Equity Research, a leading equity research firm with a focus on small capitalization public companies has initiated coverage of Taoping Inc. (TAOP). The in-depth 20-page initiation report includes detailed information on the Taoping 's business model, services, industry, valuation, management, and risks.
The full research report is available here. Highlights from the report include:
Large Market Opportunity
China's urbanization rate has accelerated in the past 30 years with the urban population growing by over 100 million in the past five years to more than 813 million in 2017. According to Chinese Social Development Research, approximately 70% of the Chinese population is expected to live in urban areas by 2035. Urban lifestyle revolves around consumption of information, goods, and services that necessitate advertising and public information dissemination. According to China Industry Information Net, the estimated total market size of China's out-of-home advertising is expected to reach RMB 190 billion in 2018, with a CAGR of 19%.
Taoping sees significant growth potential in the advertising industry and is perfectly positioned to meet clients' growing demand for building two-way communications between brands and their targeted local or global audience. As a leading cloud-based ad terminal and service provider, Taoping engages in making advertising and branding affordable and effective and provides a one stop solution for digital display terminal sharing, new media resource exchange, and e-commerce transactions. By the end of 2018, TAOP's products and services will cover 100 prefecture cities and 200 million people. Taoping plans to continue expanding its top line growth aggressively and build out its nationwide terminal network, making it more difficult for new competitors to enter the market.
Unique Business Model
Currently Taoping is creating and developing an innovative new media ecosystem "Taoping Chain". This "Smart IoT Terminal - Taoping Net/App - Taoping e-Store" ecosystem makes their advertising more precise and moves it towards the future of the advertising industry. The Smart IoT Terminal is a cloud-based ad display terminal hardware with Taoping's proprietary operating system for locations such as elevators and subways. Taoping Net and Taoping App provide consumers and Smart loT Terminal owners an advertising-resource sharing and trading service platform, which could integrate nationwide high-quality screen resources, making ad trading and ad management on more than 50,000 terminals more accessible and convenient, with customers able to distribute and manage their ads on their mobile phones. Taoping e-Store is a platform built exclusively for direct consumer communication. Connecting cloud-based ad terminal owners, advertisers, and consumers, Taoping Chain enables all participants of the new media community to efficiently promote their brand, disseminate information, and exchange resources.
It is challenging to value Taoping given the limited number of direct comparable companies. In our comparable company analysis, we screened for small capitalization companies within the out-of-home advertising industry in China. We used a blend of these companies to arrive at a median enterprise value to revenue multiple. From our analysis, we have found the shares to be undervalued with significant upside if the company executes on the top line growth management anticipates. We also built a top down model and discounted cash flow to value Taoping. Based on an average of the two methods, we arrive at a valuation of $2 per share valuation.
About Taoping Inc.
Taoping Inc. is a leading cloud-based ad terminal and service provider of digital advertising distribution networks and new media resource sharing platforms within the out-of-home advertising market in China. The company engages in making advertising and branding affordable and effective for everyone and provides a one stop solution for digital display terminal sharing, new media resource exchange, and e-commerce transactions. Taoping was founded in 1993 and is headquartered in Shenzhen, the People's Republic of China.
For more information, visit http://en.chinacnit.com/relation.html.
About Diamond Equity Research
Diamond Equity Research provides institutional, quality research to emerging growth companies that are undercovered and undervalued. Diamond Equity Research is an approved sell-side provider on premiere institutional investor platforms including Factset, Morningstar, and Thomson One. The founder, Hunter Diamond, CFA, brings extensive experience working as a research analyst and investment banker focused on emerging growth companies. Hunter Diamond, CFA holds his Bachelor of Science and Master of Business Administration from Cornell University. The firm is headquartered in midtown Manhattan.
For more information, visit www.diamondequityresearch.com.
Full disclosures pertaining to this report can be found in the report at https://www.diamondequityresearch.com/disclosures/. Taoping Inc. has paid for this report as company sponsored research, 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. Diamond Equity Research LLC is being compensated by Taoping Inc. for producing research materials regarding Taoping Inc. and its securities. All payments are received upfront and are billed for an annual or semi-annual research engagement. As of 10/25/2018 the issuer had paid us $18,500 for our services, with services commencing on 09/25/2018. This fee is meant to subsidize the costs related to researching and monitoring the security. 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. Additional fees may have accrued since then.
Hunter Diamond, CFA
Diamond Equity Research
SOURCE: Diamond Equity Research