SeeThruEquity Issues Update on One Horizon Group (NASDAQ: OHGI) Highlighting Aishuo App Growth and Increasing Price Target to $5.03 Per Share

NEW YORK, NY / ACCESSWIRE / July 27, 2015 / SeeThruEquity, a leading independent equity research and corporate access firm focused on small-cap and micro-cap public companies, today announced it has issued an update on One Horizon Group, Inc. (NASDAQ: OHGI).

“We remain impressed by OHGI’s ability to win new business with Horizon. OHGI has focused on emerging markets, which have attractive growth potential due to their population density, network congestion and rapidly growing smart phone penetration. These factors enhance the value proposition offered by OHGI, which helps operators manage rising traffic volumes while combatting competitive threats from other mobile VoIP applications, by giving their customers a more efficient mobile VoIP solution that adds value to their network. We are equally impressed by what appears to be the rapid growth of OHGI’s new mobile VoIP service, Aishuo, which is aimed at Chinese consumers. We have assumed the company will focus on growth rather than monetization in year one for Aishuo, but in light of the rapid growth in subscriber downloads, we are now forecasting Aishuo revenue to become 16% of company revenues by the end of 2016E, and surpass 30% of revenues by 2018E,” stated Ajay Tandon, CEO of SeeThruEquity. “We are increasing our 12-month price target to $5.03 per share. OHGI shares have risen over 111% since our initiation report on February 2, 2015, when shares traded at $1.21. We expect a continuation of strong subscriber downloads as the company pursues its goal of 15mn within the first two years of launch.”

The report is available here: OHGI July 2015 Update Note. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack’s. The report will be available on these platforms. The firm also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.

Additional highlights from the update note are as follows:

Aishuo accelerates to over 6mn subscriber downloads

Aishuo, OHGI’s new consumer-focused, Chinese retail mobile VoIP service, appears to be gaining traction faster than we initially expected. After ending 1Q15 with 1.6mn subscriber downloads, OHGI announced that the company surpassed 5.19mn subscriber downloads at the end of 2Q15 – representing 224% sequential growth – and 6mn as of July 23, 2015. Assuming a reasonable subscriber retention rate, this places the company well on course for surpassing its goal of accumulating 15mn subscribers within two years of launch.

The Aishuo mobile VoIP app has broad distribution in the leading app stores in China, including Xiaomi, Baidu, Tencent and 360.CN. Moreover, in June OHGI announced that Aishuo had optimized its service for Xiaomi. Given Xiaomi’s status as China’s largest smartphone vendor and one of the fastest growing mobile handset vendors in China, India, Southeast Asia, we expect the move to only add to Aishuo’s momentum. We note that Aishuo has also been optimized for Android and iOS operating systems, and the company has indicated that the app is the top performing retail VoIP service across the top four brands of China’s smartphone marketplace, including Samsung, Lenovo, Huawei and Coolpad.

Increasing price target to $5.03

In light of what appears to be strong initial adoption of OHGI’s retail mobile VoIP offering in China, we are increasing our price target for OHGI to $5.03 from our prior target of $4.05. OHGI shares have risen over 111% since our initiation report on February 2, 2015, when shares traded at $1.21. We expect a continuation of strong subscriber downloads as the company pursues its goal of 15mn within the first two years of launch. If achieved, the price target of $5.03 represents potential upside of 101.2% form the recent price of $2.50.

Please review important disclosures on our website at www.seethruequity.com.

About One Horizon Group, Inc.

One Horizon Group Inc.’s business is to optimize communications over the Internet through its wholly owned subsidiary, Horizon Globex GmbH, which develops and markets one of the world’s most bandwidth-efficient mobile voice over Internet Protocol (VoIP) platforms for smartphones, and also offers a range of other optimized data applications including messaging and mobile advertising. Horizon Globex GmbH is an ISO 9001 and ISO 20000-1 certified company. The Company has operations in Switzerland, the United Kingdom, China, India, Singapore, Hong Kong and Ireland.

For more information on the Company, its products and services, please visit www.onehorizongroup.com.

About SeeThruEquity

SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. The company does not conduct any investment banking or commission based business. SeeThruEquity is approved to contribute its research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks, and distribute its research to its database of opt-in investors. The company also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.

For more information visit www.seethruequity.com.

Contact:

Ajay Tandon
SeeThruEquity
info@seethruequity.com

SOURCE: SeeThruEquity

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