AHAlife - the eBay of luxury goods

AHAlife (ASX:AHL) is a New York based online marketplace platform on which buyers and sellers can trade a curated selection of luxury goods. Rather than functioning as an online retailer, it is a marketplace in the same way as Etsy, eBay or Amazon, and therefore carries very little inventory. As a result of its niche positioning, AHAlife is able to secure a Gross Profit margin more typical of a luxury retailer, but without the heavy working capital requirements of a traditional retailer. The company reports a 50% first margin on booked sales, which translates into approximately ~37% GP margin on adjusted Net Revenue. The platform already has over 2,800 brands/suppliers and growing, and with tens of thousands of products already on the platform, revenues are scalable. The A$33m invested to date could allow the platform to drive revenue well beyond our forecast assumptions - without any significant new investment required. We are initiating coverage with a BUY rating, and a 12-month price target of $0.94/share. Livewire readers can see our full initiation report here: (VIEW LINK)