Core Viewpoint - The Federal Reserve has initiated its fifth interest rate cut since September 2024, leading to a resurgence in small-cap stocks in the U.S. equity market, particularly the Russell 2000 index, which has been rising since April 2023 due to expectations of lower interest rates [1] Group 1: Company Overview - The company, 第壹仁汇 (NIVF), has a market capitalization of approximately $134,000, which is significantly lower than its cash assets totaling around $703,670 [2] - The company has been in a state of loss since 2023, primarily due to its previous focus on medical services, a sector where many peers have not yet achieved profitability [2][3] - Despite the losses, the company has been diversifying its business, including acquiring MicroSort laboratory services and entering real estate development in the UAE [2][3] Group 2: Financial Projections - Zacks has initiated coverage on NIVF with a target price of $15 per share, while the current share price is only $1.81, indicating a significant undervaluation [1] - The company is expected to achieve profitability by 2026, with projected net profits of $18.6 million, $74.1 million, and $139 million for the years 2026, 2027, and 2028, respectively [9] - The projected earnings per share for NIVF are expected to rise significantly from $1.59 in 2026 to $11.87 by 2028, compared to its current share price of less than $1 [9] Group 3: Business Diversification - The company is expanding into real estate, having acquired a prime land parcel in Ras Al Khaimah, UAE, for high-end residential development, which is expected to generate substantial revenue [10] - The real estate project is projected to have total sales exceeding $450 million, with a net profit of around $200 million, indicating a strong growth potential for the company [9][10] - The company is also exploring digital asset management through tokenization of real estate and art, positioning itself in the burgeoning RWA (Real World Asset) market, which is projected to exceed $10 trillion by 2030 [12][15]

Core Viewpoint - The article discusses the recent interest in small-cap stocks in the U.S. market, particularly in light of the Federal Reserve's fifth interest rate cut since September 2024, which is expected to benefit small-cap companies due to lower financing costs and improved market liquidity [1][2]. Group 1: Market Context - The Russell 2000 index, representing small-cap stocks, has been rising since April 2023, driven by expectations of interest rate cuts [2]. - Historically, the restart of the Federal Reserve's rate-cutting cycle tends to favor small-cap stocks, as they can improve profitability through lower borrowing costs [2]. - Since 2022, small-cap stocks have been under pressure, leading to many companies with positive earnings expectations being undervalued [3]. Group 2: Company Analysis - 第壹仁汇 (NIVF) - Zacks initiated coverage on 第壹仁汇 with a target price of $15 per share, while the stock was trading at $1.81 at the time of the report [4]. - The company is currently undervalued, with a market capitalization of approximately $134,000, which is less than its cash assets totaling about $703,670 [7][8]. - 第壹仁汇 has been operating at a loss since 2023, but its losses have been narrowing, and it has diversified its business into real estate and blockchain [9]. Group 3: Business Developments - The company announced a potential reverse acquisition of SAXA's mining assets for $5 billion, which could allow it to enter the U.S. rare earth and precious metals mining industry [11]. - Zacks predicts that 第壹仁汇 could turn profitable by 2026, with significant net profit growth in the following years due to its real estate ventures [11][23]. - The company is developing a high-end residential complex in Ras Al Khaimah, with projected total sales exceeding $450 million and net profits around $200 million [22][23]. Group 4: Future Growth Potential - 第壹仁汇 plans to expand its real estate business as a core segment, focusing on high-end products and mixed sales strategies [24][27]. - The company is also exploring the tokenization of real estate assets, which could enhance liquidity and transform its business model into a "development + digital finance" ecosystem [30]. - The management aims to replicate successful projects across the Middle East, leveraging its early investments in digital asset management [28][39].