FYI | Oct 02 2019
MyFiziq: Expansion Through Partnerships
By Pitt Street Research
MyFiziq ((MYQ)) is building around a patented mobile application that allows users to track body shapes and dimensions while performing everyday activities.
MyFiziq is currently focussing on four verticals (health & fitness, medical & insurance, corporate wellness, and apparel) and is largely relying on the partnership route to build its client base.
The company has signed over 10 partnership agreements with well-established players since 2017, with 4 of the agreements (WellKom, TicTrac, Boditrax and WeSure) being inked in the past 6-7 months.
The success enjoyed by the company in entering into partnerships is a testimonial to its strong technology commercialisation skills.
MyFiziq’s growth potential is very high due to growing adoption of smartphone apps and mHealth.
Apps that allow tracking of body shapes and dimensions are clearly in demand and MyFiziq lacks any visible competition.
We believe that MyFiziq’s strategy to grow through partnerships is a highly scalable way to realise its potential. This saves vast amounts of capital and allows immediate access to very large pre-existing user environments.
Valuation range of $0.85–1.03 per share
In May 2019, we valued MyFiziq at A$0.91 base case and $1.08 optimistic case based on a DCF calculation.
On the back of the slow take off of existing B2B contracts we have revised our valuation to the range of $0.85 base case and $1.03 optimistic case.
While MyFiziq has signed three new client agreements since May 2019, our valuation factors in the potential from only the Boditrax agreement due to lack of pricing information on the other two agreements.
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