Linkage Global Inc’s Subsidiary Signs Advertising Deployment Contract with A Major Client for a $40 Million Budgeted Campaign
- None.
- None.
Insights
Linkage Global Inc's recent contract for a
Firstly, the hefty budget signals that Linkage's subsidiary, HQT Network, has secured a major player in the industry, which could elevate the company's market position and credibility within the advertising sector. This budget allocation could also denote a boost in future revenue streams and signifies trust from a high-profile client.
In assessing the impact of this agreement, investors should observe the trickle-down effect this might have on Linkage's earnings over the duration of the advertising campaign. A successful campaign not only brings in immediate revenue but may also set a precedent for future deals and long-term client retention. However, investors should remain cautious, as the high expectations set by the contract require HQT Network to deliver results that are both qualitatively and quantitatively beneficial to the client.
Furthermore, the commitment to comply with media platform policies and the focus on ROI indicates a strategic approach to advertising that's data-driven. If their campaign strategies prove effective, Linkage could garner more high-value contracts, which will be a beacon for investors looking for growth-oriented stocks.
From a financial perspective, the
Assuming a conservative profit margin for advertising services, the sheer volume of the contract could positively affect Linkage's earnings per share (EPS), which in turn may lead to a more attractive valuation. However, it is important for investors to closely monitor the actual uptake of the allocated budget and the subsequent execution of the campaign services.
The announcement of such contracts can sometimes lead to a short-term hike in stock prices, as the market reacts to the prospects of increased revenues. Nevertheless, an insightful investor should look beyond this initial excitement and consider the company's ability to manage and deliver large-scale advertising operations consistently, which will impact the long-term stock performance.
Lastly, it's important to consider the company's past performance in fulfilling similar contracts. A history of successful delivery can mitigate the risk perception among investors, whereas any previous issues could hint at potential challenges ahead.
Tokyo Japan, April 22, 2024 (GLOBE NEWSWIRE) -- Linkage Global Inc (the “Company” or “Linkage”) (NASDAQ: LGCB), a cross-border e-commerce integrated service company headquartered in Japan, today announced that its wholly-owned subsidiary, HQT Network Co. Limited ("HQT Network"), has entered into an advertising deployment contract (the “Contract") with a major client with a budget of
Under the terms of the Contract, HQT Network will provide comprehensive and professional advertising deployment services to the client, that will include providing support to the client’s advertising account, such as account setup, account binding/authorization, and account top-up, as well as advertisement campaign services, such as multimedia content production, ad creation, and data optimization.
According to the Contract, HQT Network will calibrate the deployment amounts in accordance with the client's anticipated annual advertising budget, totaling
Mr. Wu Zhihua, Chairman and CEO of Linkage, expressed his enthusiasm, stating, "Linkage is dedicated to providing the client with superior and professional advertising deployment services, aiming to enhance the client’s brand influence, recognition, reputation, and market competitiveness. We eagerly anticipate achieving mutual success and remarkable outcomes through this collaborative endeavor."
"Linkage recognizes the profound influence that Google Ads and other media platforms wield within the advertising industry due to their extensive user base and exceptional promotional opportunities, and Linkage intends to rely on and benefit from the advertising resources of these platforms. We are committed to designing brand promotion strategies tailored to the client’s unique needs."
"Securing this Contract signifies the client’s recognition of our track record and reputation in advertising deployment. The Contract injects a substantial advertising deployment budget of
About Linkage Global Inc
Linkage Global Inc is a cross-border e-commerce integrated services provider headquartered in Japan, with operations in Japan, Hong Kong, and mainland China. The Company has developed a comprehensive service system comprised of the following lines of business complementary to each other, including (i) cross-border sales, (ii) integrated e-commerce services and (iii) e-commerce store operation services. Cross-border sales operations were initially launched in 2011 in Japan through the Company’s subsidiary, EXTEND CO., LTD. The products sold in the Company’s cross-border sales business are sourced from Japanese and Chinese manufacturers and brands, together with the Company’s private label smart products. Linkage also provides digital marketing solutions to its customers by cooperating with Google and other channels. Since 2021, the Company has started offering e-commerce operation training courses and software support services. The mission of Linkage is to make cross-border transactions easier. For more information, please visit https://www.linkagecc.com/.
Forward-Looking Statement
This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performances, underlying assumptions, and other statements that are other than statements of historical facts. When the Company uses words such as "may,” "will,” "intend," "should," "believe," "expect," "anticipate," "project," "estimate," or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks, including, but not limited to, the uncertainties related to market conditions. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
For more information, please contact:
Investor Relations
WFS Investor Relations Inc.
Connie Kang, Partner
Email: ckang@wealthfsllc.com
Tel: +86 1381 185 7742
FAQ
What is the name of the subsidiary of Linkage Global Inc that signed the advertising deployment contract?
What is the budget of the advertising deployment contract signed by HQT Network?
What services will HQT Network provide under the advertising deployment contract?
Who is the Chairman and CEO of Linkage Global Inc?
What is the goal of Linkage Global Inc in providing advertising deployment services to the client?
Why does Linkage Global Inc recognize the influence of Google Ads and other media platforms in the advertising industry?
What does securing this Contract signify for Linkage Global Inc?
