Abstract: High-Quality Small-Cap Stocks Are Expected to Catch Up in Gains
HONG KONG, Nov 6, 2025 - (ACN Newswire) – On October 29 local time, the Federal Reserve launched its fifth interest rate cut since September 2024. Along with this process, the popularity of small-cap stocks in the US stock market has gradually returned.
In fact, driven by the expectation of interest rate cuts, the Russell 2000 index, which represents the performance of the US small-cap stock market, has been rising all the way since April this year.
According to historical experience, the restart of the Federal Reserve's interest rate cut cycle is first beneficial to small-cap stocks. Benefiting from the low-interest-rate environment, small-cap companies can often directly improve their profitability with lower financing costs; and benefiting from the improvement of market liquidity and the increase in risk appetite, interest rate cuts are also expected to stimulate investors to lay out those small-cap stocks that have been ignored but have high-quality fundamentals at low prices.
Previously, US small-cap stocks had been depressed for a long time since 2022, and naturally, there is no shortage of companies in the current market whose profit expectations are good but whose valuations have not yet reflected their value.
In October this year, the US investment research institution Zacks covered NIVF (stock abbreviation "NIVF") for the first time and gave it a valuation of $15 per share. When the report was released, the stock price of NIVF was only $1.81.
So, what are the reasons for the gap between the institutional judgment and the market performance? Can NIVF support the target price of $15 per share?
01 Market Value Lower Than Cash Assets, Why Is NIVF Undervalued?
The current US stock market presents a significant pattern of "overvaluation of large-cap stocks and undervaluation of small-cap companies". On one side, the US stock "Magnificent Seven" such as Apple, Microsoft, and Alphabet are in the spotlight, with NVIDIA refreshing a human history record with a market value of $5 trillion; on the other side, a large number of small and medium-cap stocks face insufficient liquidity, and there are even individual stocks like NIVF whose market value is even lower than the company's cash assets.
At present, NIVF holds approximately $1.3082 million in bank cash, virtual currency SOL worth about $2.1137 million, and in addition, it has paid a deposit of around $3.6147 million for land purchase, with a total cash assets holding of about $7.0367 million.
However, as of November 3 local time, the market value of NIVF was only about $1.34 million, far lower than its cash on hand.
This indicates that this individual stock has been "accidentally harmed" by the overall environment of the US stock market to a certain extent.
Of course, the market's concerns are not unfounded. Since 2023, NIVF has been in a state of continuous losses, and considering its previous business structure dominated by medical services, most companies of the same type in the US stock market have also not yet achieved profitability.
Looking at NIVF itself, the scale of its losses has actually narrowed year by year, and it has gradually expanded its diversified businesses in recent years. For example, in February this year, it acquired MicroSort laboratory services and related intellectual property rights to expand the coverage of medical services; in June, it began to carry out real estate development business in the United Arab Emirates; at the same time, it also laid out its presence in the blockchain field, and recently was appointed as an agent for the tokenization of physical assets for artworks with a value of up to 200 million US dollars.
Just on the 3rd of this month, the company disclosed a new development: it plans to reverse-acquire SAXA's mining assets at a transaction consideration of 5 billion US dollars, specifically including the latter's two mines located in Arizona and California, the United States. If the merger and acquisition is completed, NIVF is expected to enter the US rare earth and precious metal mining industry through this opportunity.
Compared with the medical service industry, real estate and mineral mining are industries with relatively certain profitability. Expanding the diversified business landscape is expected to contribute a new growth driver to NIVF's revenue and profits. Especially driven by the real estate business, Zacks predicts that NIVF may turn losses into profits in 2026 and achieve significant growth in net profit in the following three years.
Zacks' Earnings Forecast for NIVF
In fact, if it were not for the impact of matters such as acquisitions, NIVF would have been expected to achieve profitability within this year.
The Zacks model predicts that its adjusted earnings per share (EPS) for this year will be -$2.19. However, it should be noted that this does not include gains from two low-cost acquisitions—a valuation report issued by one of the Big Four accounting firms previously showed that NIVF generated a $19.1 million gain from the low-cost acquisition after purchasing flow cytometry intellectual property rights and related assets; it also generated a similar gain of $3.52 million after acquiring MicroSort in February this year.
It is precisely these acquisition matters that have dragged down the company's stock price to a certain extent.
Taking the acquisition of MicroSort as an example, NIVF paid $750,000 in cash at that time, and the remaining amount was paid in the form of equivalent new Class A shares. Objectively, this would put downward pressure on the stock price at that time.
Issuing new shares by listed companies is a common financing method. Official information shows that part of the capital expenditure for NIVF's real estate projects and the $5 billion required for the acquisition of SAXA's mining assets will also be raised in this form. At that time, NIVF will issue 500 million shares to SAXA shareholders and others at a price of $10 per share as consideration payment. After the transaction is completed, it may issue an additional 50 million new shares at a price of $5 per share.
Therefore, it can be predicted that when NIVF conducts additional share offerings for financing regarding the above - mentioned matters, its stock price will still bear temporary technical pressure.
However, after the transaction is completed and the $5 - billion - dollar assets are injected, based on the planned issuance of 582 million shares, the net value of the newly - injected assets is expected to reach $8.6 per share.
Compared with the current stock price of less than $1, NIVF is "remarkably cheap".
Overall, the low valuation of NIVF is due to both fundamental factors such as the single - structured revenue in the early stage, and the temporary "book loss" caused by the acquisition matters, as well as objectively the drag of additional share offerings. Then, under the trend that the overall preference for small - cap stocks is expected to improve, apart from being "remarkably cheap", does NIVF have room for growth imagination in the future?
02 Middle - East High - end Real Estate, the Engine of Profit Growth
A certain answer is that currently NIVF already holds a scarce plot of land.
As the first step in its real estate business layout, in June 2025, NIVF purchased a parcel of land in Ras Al Khaimah, the largest city and capital of the Emirate of Ras Al Khaimah. This land parcel is located in the Ras Al Khaimah Beach Area, adjacent to Al Marjan Island. The Wynn Resort currently under construction on this island is expected to open in early 2027, and it will become the only "Las Vegas" - style resort in the UAE at that time.
According to the plan, NIVF will cooperate with BNW Real Estate Development LLC, a well - known local developer in the UAE, to develop a high - end residential complex with an area of over 525,000 square feet on this land parcel. Cooperating with a local developer, positioning itself as a high - end residential project, and being adjacent to the resort almost locks in the future customer base and sales of this project.
Zacks' Assumptions on Future Sales and Revenue Conversion of the Ras Al Khaimah Real Estate Project
According to the management, this project has now entered a critical implementation stage. More than 4 months after acquiring the land, the preliminary design plan of the project has been basically completed, and the development process is about to start. It is expected that the pre - sales will be launched in the first half of 2026.
And according to Zacks' calculation, the total sales of the project will exceed $450 million, and the net profit will be approximately $200 million. Based on the initial investment cost of about $24 million, NIVF will enjoy about one - third of the net investment income.
In terms of financial data, benefiting from the contribution of the real estate business, Zacks expects NIVF's net profit to reach $18.6 million, $74.1 million, and $139 million in 2026 - 2028 respectively.
If calculated based on the 11.7 million issued and outstanding shares, Zacks predicts that its earnings per share will reach $1.59, $6.35, and $11.87 in 2026 - 2028 respectively. This is significantly higher than its current share price of less than $1.
The management revealed that the Ras Al Khaimah project is only the first step for NIVF to set foot in real estate, and in the future, it considers developing the real estate segment into one of the company's pillar businesses.
Judging from the market environment in Ras Al Khaimah, the local area has the potential for real estate growth.
In terms of the supply-demand structure of housing sources, since 2025, the market supply has begun to lag behind the market demand, and the value of real estate assets and the rental return rate have continued to rise. The local population nearly doubled from 2005 to 2023, laying a foundation for undertaking the market demand. At the same time, the UAE's Golden Visa program provides long-term residency rights to foreigners who invest in real estate. A 10-year renewable visa allows individuals to live, work and study locally, which is beneficial to international investors.
In addition, according to data statistics, about 30,000 Chinese immigrants move to the UAE every year.
However, NIVF maintains a cautious rhythm in real estate investment and focuses on the positioning of high-end products, clearly taking high-end residential properties, coastal resort properties and cultural and tourism real estate as the key directions.
On the other hand, at the sales end, the Ras Al Khaimah project will adopt a mixed sales mechanism, taking into account both traditional offline sales and real estate tokenization. The latter is expected to help investors efficiently realize cash back. More importantly, NIVF also regards it as an important pilot for exploring the tokenization of real-world assets (abbreviated as "RWA").
The management frankly stated that if the first project is successfully implemented and generates good returns, the company will replicate the "development + tokenization" model in the UAE and even the entire Middle East region to form a scalable and replicable growth engine.
This also leads to another business it laid out earlier—digital asset management.
03 Pioneer in the Trillion-Dollar RWA Market
Using RWA to digitally divide part of the property ownership can not only improve asset liquidity, but also upgrade the real estate development model from the traditional capital-intensive type to an ecological platform of "development + digital finance", which has broad room for imagination in the future.
High total value, poor liquidity, clear property rights and quantifiable prices are the main characteristics that make real estate an ideal target for RWA. However, for NIVF, real estate projects are obviously only the starting point for its exploration of digital asset management.
In June this year, it planned to invest 30 million US dollars in the digital asset staking business of the Solana ecosystem. Up to now, the yield performance has been stable, which has verified its execution capability and risk control system in the field of encrypted assets to a certain extent.
Not long ago, it also cooperated with the World Chinese Museum and served as the global exclusive agent for the tokenization of the museum's artworks. The first batch of tokenized artworks has a valuation of 2 million US dollars. In the future, based on the success of the initial promotion, it will further expand to other artwork assets, with a total value of up to 200 million US dollars.
Specifically, NIVF takes full responsibility for all core links in the entire tokenization process, including asset selection and due diligence, joint authoritative institutions to conduct independent valuation and authenticity identification, designing tokenization structure and compliant issuance plan, connecting with global trading platforms and liquidity providers, as well as marketing and international investor relations management.
Eventually, it will charge 15% of the total value of the tokenized assets as a service fee—which contributes a new source of income for it.
According to Deloitte's "2023 Art & Finance Report", the scale of wealth in artworks and related collectibles held by global ultra-high-net-worth individuals reached $2.174 trillion in 2022, and is expected to climb to $2.861 trillion by 2026.
Looking at the entire RWA market, Boston Consulting predicts that its scale will exceed $10 trillion by 2030.
This means that acting as an agent for artwork RWA not only adds color to short-term performance, but also accumulates first-mover advantages for opportunities in the trillion-dollar market in the future.
Just as some technology companies are cautious about artwork RWA currently due to the lack of fair value in their pricing, NIVF has taken the lead in building a multi-level risk control and value verification system during its exploration. For example, it has introduced third-party professional evaluation institutions such as internationally renowned art consultants, art history experts, and cultural heritage certification organizations to ensure that the valuation is based on historical transaction data, scarcity analysis, and academic research; it has also cooperated with institutions like the World Chinese Museum to enhance asset credibility by leveraging brand public trust and academic resources.
This not only provides an opportunity for ordinary investors to participate in high-value asset investment, but also offers a reference for the further improvement of the RWA pricing system.
In fact, NIVF, which has Hong Kong roots, a headquarters in Thailand, is listed on the US stock market, and operates businesses in multiple regions across the Asia-Pacific and the Middle East, has inherent advantages in laying out RWA business: the US leads the world in compliance processes, and Hong Kong has the geographical advantage of being an Asia-Pacific financial center, which enhances the company's security and credibility; at the same time, operating businesses in multiple regions just matches the characteristic of blockchain transactions that aim to eliminate global physical barriers.
The management of NIVF even mentioned that nowadays, users in many Middle Eastern regions such as the UAE "like to trade virtual currencies", and the local market has an open attitude and high acceptance towards on-chain transactions.
Moreover, the accumulation from its early operations in the medical and real estate businesses also makes it easier for the company to gain support from local customers in the early stage of exploring the digital asset management business.
Returning from the trillion-dollar blue ocean to the present, although the above-mentioned value has not yet been realized through the company's performance, for investors who can understand the logic of its business layout and the profit inflection point, the revaluation of NIVF's value may be starting right now. When the market's attention shifts away from the red-hot technology giants to these small-cap stocks with clear growth paths, the "cheap" window for NIVF may not last long.
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Topic: Press release summary
Sectors: Metals & Mining, Real Estate & REIT, Healthcare & Pharm, Blockchain Technology, NFTs
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