Litchfield Hills Research: Society Pass Incorporated's (Nasdaq: SOPA) Total Asset Value Implies Valuation of 1,300% of Current Market Capitalization

Core Viewpoint - Society Pass Incorporated (SOPA) is undergoing a strategic transformation from a consumer e-commerce model to a platform holding company focused on scalable, cash-generative businesses and AI infrastructure optionality, as highlighted by Litchfield Hills Research [2][3]. Valuation Analysis - Litchfield Hills Research identifies a significant sum-of-the-parts valuation disconnect, with SOPA's market capitalization of $18.0 million reflecting a substantial discount to its operating assets and cash, valued at approximately 1,300% of the parent company [2]. Strategic Transformation - The company is shifting its focus towards higher-margin, infrastructure-oriented assets due to increasing competition and margin pressure in consumer e-commerce, alongside a growing global demand for AI inference capacity [3]. Revenue Growth - SOPA's consolidated sales are projected to increase from $7.0 million in 2025 to $10 million by 2027, driven by its subsidiaries Thoughtful Media and NusaTrip [4]. Thoughtful Media Insights - Thoughtful Media is transitioning to premium advertising and social commerce, with a forecasted revenue CAGR of 17% through 2027, positioning it as a key asset in SOPA's new model [5]. Thoughtful Media IPO - Thoughtful Media filed for an IPO in August 2024, proposing a price range of $4.00–$5.00 per share for 3.75 million shares, which could imply a pro forma equity valuation of approximately $86 million to $107 million, significantly enhancing SOPA's valuation [6]. NusaTrip Overview - NusaTrip, a majority-owned subsidiary, is pivoting to the higher-margin hotel sector and accounted for about 55% of SOPA's consolidated revenue in the last reported quarter, processing approximately $250 million GMV in 2025 [7]. AI Infrastructure Investments - The company is making minority, non-consolidated investments in AI infrastructure in Central & Eastern Europe, which offer high-margin optionality despite limited near-term financial visibility [8]. Company Background - Society Pass was founded in 2018 and operates in Southeast Asia across four interconnected verticals: digital media, travel, lifestyle, and alternative intelligence infrastructure [9].