By Thomas Kerr, CFA
HeartCore’s Strategic Dividend Decision
On April 1, 2024, HeartCore Enterprises (HTCR) proudly announced the authorization of a dividend payment totaling $0.02 per share, equating to a substantial $417,283 that will flow into the pockets of its loyal shareholders. This move comes after a meticulous examination of the company’s financial standing, with the Board of Directors deeming it wise and timely to reward stakeholders through this dividend distribution.
HeartCore’s CEO, Sumitaka Kanno Yamamoto, shared, “I am pleased to announce our inaugural dividend payment, a testament to our strong financial health and prudent cash management. The recent sale of a Go IPO client warrant has infused our coffers, enabling us to give back to our valued shareholders. Looking ahead, we forecast robust sales and gross profit for the first quarter of 2024, marking a pinnacle in HeartCore’s history.“
Striding Toward Financial Success
Riding the wave of success, HeartCore hit a high note on March 18, 2024, by striking an agreement with PharmaBio Corporation for its 13th Go IPO consulting service win. This achievement is anticipated to yield $500,000 in initial fees, coupled with $300,000 in success fees, augmenting HeartCore’s financial prowess. The contractual reward of acquiring a 3.0% stake in PharmaBio’s common stock serves as a cherry atop the cake.
Expressing elation, CEO Yamamoto said, “Our recent wins position HeartCore for impressive financial growth and lay the groundwork for future M&A endeavors in our software business. The revenue boons following our clients’ successful listings are propelling us to new heights. We are on track to make 2024 our standout year.“
Strengthened Cash Reserves
HeartCore’s proactive stance shone through on March 4, 2024, as the company sealed a deal to vend a Go IPO client’s warrants to a Japanese financial institution, reeling in a substantial $9 million in cash. This transaction fortified the company’s cash reserves, priming it to pursue strategic mergers and acquisitions, expand its software business, and navigate global expansion endeavors effectively. The future holds the promise of selling more warrants as additional Go IPO clients land on premier U.S. exchanges.
Anticipating Future Growth
On February 29, 2024, HeartCore set another milestone by partnering with Jyo Co., Ltd for its 12th Go IPO consulting service win. The collaboration is poised to see Jyo through its public debut on the Nasdaq Stock Market or the New York Stock Exchange, with HeartCore offering a gamut of support services. In return, HeartCore looks forward to reaping $700,000 in initial fees, coupled with a 2% stake in Jyo’s common stock.
Projections set HeartCore’s 2023 revenue at $23.3 million, with an EPS estimate of ($0.08). An optimistic outlook for 2024 forecasts revenue at $24.3 million and an EPS of $0.44, while a 2025 EPS estimate is pegged at $0.55. The target price remains steady at $3.00, contingent upon the financial performance for 2023 and the first quarter of 2024.
