Webuy Global Ltd

Webuy Global Ltd (NASDAQ: WBUY) is a community-oriented e-commerce retailor. The Company is focused on grocery and travel. The Company’s offer a wide range of products on its platform, including food and beverage, fresh produce, as well as lifestyle and other personal care items. Its geographic areas include Singapore, Indonesia and Malaysia. The Customers are able to be part of a group purchase or purchase products and services individually. The Company’s subsidiaries include New Retail International Pte. Ltd., The Shopaholic Bear Pte Ltd., Bear Bear Pte. Ltd., and PT Webuy Social Indonesia.

Recent Financial and Business Updates:

• Nasdaq Notification on Minimum Bid Requirements: Webuy Global Ltd. (Nasdaq: WBUY), a rising player in the community e-commerce sector focusing on grocery and travel in Southeast Asia, disclosed today that it received written notice from the Nasdaq Listing Qualifications concerning its failure to maintain a minimum bid price of USD 1.00 per share for the last 30 consecutive business days, as stipulated by Nasdaq Listing Rule 5550(a)(2) – bid price (the "Minimum Bid Price Rule"). While this notification doesn't have an immediate impact on Webuy's share listing, the company has 180 calendar days, until July 24, 2024, to regain compliance. If the bid price of Webuy’s shares closes at USD 1.00 or more for a minimum of ten consecutive business days within this period, Nasdaq will confirm compliance, resolving the issue.
• Financial Results Overview: During the six months ending June 30, 2023, Webuy witnessed a notable surge in total revenue, soaring by 62.4% to approximately USD 24.4 million compared to the same period in 2022. This impressive growth was primarily fueled by the burgeoning grocery sales in Indonesia and the successful introduction of packaged tours and associated products in Singapore, which generated about USD 5.4 million in revenue. However, despite the revenue growth, the gross profit for the first half of 2023 saw a decline to approximately USD 0.73 million, attributed chiefly to promotional discounts aimed at expanding user engagement. Notably, the net loss for the six-month period ending June 30, 2023, narrowed to approximately USD 3.67 million, a significant improvement from the previous year, thanks to effective cost-control measures, resulting in a notable decrease in total operating expenses.
• Impressive Business Achievements: Webuy has showcased remarkable achievements amidst its operational challenges, achieving remarkable milestones in both its travel services and grocery sales sectors. The company witnessed a staggering increase of over 1000% in travel services and more than 200% growth in grocery sales in Indonesia. Moreover, Webuy successfully completed a recent Initial Public Offering (IPO), securing gross proceeds of USD 15.2 million. These funds are expected to fuel the company's accelerated growth trajectory across Southeast Asia, further solidifying its position in the burgeoning e-commerce market of the region.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The yellow colour line reflects the 21-period simple moving average (SMA) while the blue line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The orange colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The red and green colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps with easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is April 05, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’