$HIPH -Acquired license for Worthy via its subsidi
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NEW YORK, NY / ACCESSWIRE / June 21, 2018 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has initiated coverage on American Premium Water Corp. (OTC PINK: HIPH) with a Target Price of $0.15.
The report is available here: June 2018 Initiation Report.
We initiate coverage on American Premium Water Corp. (OTC PINK: HIPH, $0.020) with a price target of $0.15. HIPH is a diversified company focused on premium consumer brands and products. It currently sells and markets hydrogen-infused water under the LALPINATM brand and luxury apparel under the Gents brand. We expect HIPH growth to be supported by two commercial initiatives planned for this year: Hydrogen-infused Water and Hydrogen CBD-infused Water. Both product lines have high potential given: 1) the rising consumer interest in legal CBD products; and 2) the large and expanding market for functional water. LALPINATM Hydrogen is already selling via select channels, and the company is planning for a full-scale launch in the coming quarters. The company debuted LALPINATM Hydrogen CBD in January 2018, and it is expected to be launched in June 2018. The functional bottled water market in the US is expected to reach ~$2.9 billion by 2020 driven by a shift in consumer preference from soda-based to more nutritional and healthier drinks. This is evident from the rising demand of seltzer water, ionized water and smart water, among others. Hydrogen-infused water has the potential to become a new category in this trend. HIPH has an early mover advantage in the hydrogen infused water market which currently has limited competition.
LALPINA Hydrogen CBD positions the company to tap into growing consumer interest around CBD related products as this is the only known Hydrogen CBD water in the market. There is a large market opportunity given the growing number of cannabis dispensaries which could be potential customers.
We are also intrigued by management's effort to position Gents as an emerging luxury apparel brand. The recent acquisition of Worthy, a JV with China-based Zhangjiagang Advanced Company (ZAC), and collaborations with Showtime and SoulCycle should help expand footprint and consumer reach. HIPH has also entered the fast growing blockchain space via the acquisition of FashionCoinX, which further diversifies its potential revenue streams. HIPH noted a number of acquisition opportunities in the pipeline - all of which could further support growth. Going forward, we expect HIPH to increase revenues and earnings via new product launches, aggressive distribution and marketing, entry into new regions and M&A.
Well positioned as a luxury consumer lifestyle brand
HIPH manufactures and distributes consumer products under the LALPINATM and Gents brands. The LALPINATM brand focuses on hydrogen infused bottled water via its two products: LALPINATM Hydrogen (launched in 1Q18) and LALPINATM Hydrogen CBD (to be launched in June 2018). The bottled water market with functional benefits such as added alkalinity, electrolytes, vitamins, minerals is seeing significant traction among consumers. The shift in consumer preference to healthier and nutritional drinks is likely to further drive the growth of functional water market. The functional bottled water market in the US is expected to reach ~$2.9 billion by 2020. HIPH has an early mover advantage in the hydrogen infused water market which currently has limited competition. LALPINATM Hydrogen CBD is a front runner in the space as the only known hydrogen infused CBD beverage available on the market. The primary competitive advantage is that it improves bioavailability of CBD and absorption. The CBD market could reach $2.1 billion by 2020, according to Hemp Business Journal.
Gents is a producer of luxury hats and other fine accessories and apparel. Presence in 200 retail outlets internationally including upscale names such as Bloomingdale's, Nordstrom, and Saks Fifth Avenue strengthens its positions as a luxury brand. The acquisition of New York-based streetwear brand, Worthy further diversifies the apparel revenue stream. It will expand the price points offered by Gents and opens up many new distribution channels.
Expansion in blockchain/crypto space
The recent acquisition of FashionCoinX marks HIPH's entry in the fast growing blockchain/crypto space. Blockchain is one of the fastest growing technologies and entry in the space should benefit HIPH. According to Market Reports Center, the size of the blockchain industry will grow to $60.7 billion by the year 2024. HIPH is looking for more opportunities in the blockchain/crypto space that will complement its existing LALPINATM and Gents brands.
Aggressive marketing push to drive topline
HIPH plans to enter into partnerships and collaborations to increase distribution and marketing reach. The JV with China-based Zhangjiagang Advanced Company and collaborations with Showtime drama 'Billions' and fitness chain SoulCycle should help expand Gents footprint and consumer reach. Further, LALPINA's distribution agreement with GNC, one of the world's largest vendors of health and nutritional products, is likely to result in strong order flow. The management noted that it is working on several more distribution partnerships for both brands which should further bolster the topline.
Initiate coverage with a price target of $0.15
We see HIPH as a high risk and high reward consumer brand play. The target of $0.15 assumes that the company is successful in executing its organic and inorganic growth revolving around product expansion, strategic partnerships and M&A. Key risks include inability to raise capital for its growth initiatives and delay in the launch of LALPINATM Hydrogen CBD.
Please review important disclosures in the report and on our website at www.seethruequity.com.
About American Premium Water Corp.
HIPH is a manufacturer, distributor, and marketer of branded consumer products. It currently markets and distributes products under LALPINATM and Gents brands. Under the LALPINATM brand, the company develops hydrogen-infused energy products. Currently, the product line includes - 1) LALPINATM Hydrogen and 2) LALPINATM Hydrogen CBD. Gents is a producer of luxury hats and other fine accessories and apparel. The brand is carried in over 200 retail outlets internationally, including Bloomingdale's, Nordstrom, and Saks Fifth Avenue, among other boutiques and upscale retailers. For more information, visit www.americanpremiumwater.com
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SOURCE: SeeThruEquity