eResearch Corp. (www.eresearch.com) published an updated Research Report after Peak Positioning Technologies Inc. (CSE: PKK; OTCQB: PKKFF; DB:P0T) released its second quarter of 2020 financial statements.
Peak is the parent company of a group of Fintech subsidiaries operating in China’s commercial lending industry. Peak provides an investment vehicle for investors looking to participate in China’s Fintech industry.
Peak’s subsidiaries use technology, analytics, and artificial intelligence to provide loans, help Small-to-Medium Enterprises (SME’s) obtain loans, help lenders find clients, and also minimize lending risk.
In its second quarter, Peak’s revenue almost doubled to C$7.3 million compared to C$3.9 million in the first quarter, even with the COVID-19 pandemic impacting operations in China. Revenue in the second quarter was slightly lower than eResearch's estimate of C$7.5 million.
Peak's Fintech subsidiaries generated 80% of revenue in the quarter, up from 70% in the previous quarter, and its Financial Services subsidiaries generated 20% of revenue.
Peak’s continued to benefit from its lending platforms being used to help distribute government relief funds to SME’s that were affected by the coronavirus shutdowns.
Peak Group CEO, Johnson Joseph, commented, “The successful integration of the Jinxiaoer loan brokerage platform to the Company's Lending Hub resulting in a considerable increase in the number of transactions facilitated by the Hub during the quarter, accounted for a large portion of the Company's revenue increase from Q1 to Q2.”
eResearch expects the Jinxiaoer subsidiary to continue to positively improve revenue in the second half of fiscal 2020, with the full-year revenue impact showing up in fiscal 2021.
eResearch maintained its 2020 revenue estimate of C$35.3 million but decreased its EBITDA estimate to C$2.9 million from C$5.6 million due to higher expenses estimated for the balance of 2020. eResearch also maintained its original "Buy" rating and changed its one-year price target to $1.80 due to the recent 1-for-10 share consolidation. In July, Peak listed its shares for trading on the OTCQB stock exchange in the U.S. Peak believes by upgrading the listing to the OTCQB from the OTC Market’s Pink exchange, the company will gain access to a new pool of U.S. investors.
Peak competes in China with other companies including Ant Financial (IPO pending), X Financial (NYSE: XYF), and Hexindai Inc. (NASDAQ: HX).
For more information about eResearch's report on Peak Positioning, please visit eResearch's website (www.eresearch.com).
Disclaimer / No representations, express or implied, are made by eResearch as to the accuracy, completeness or correctness of its research. Opinions and estimates expressed in its research represent eResearch’s judgment as of the date of its reports, are subject to change without notice, and are provided in good faith and without legal responsibility. Its research is not an offer to sell or a solicitation to buy any securities. The securities discussed may not be eligible for sale in all jurisdictions. Neither eResearch, nor any person employed by eResearch, accepts any liability whatsoever for any direct or indirect loss resulting from any use of its research or the information it contains. eResearch reports may not be reproduced, distributed, or published without the express permission of eResearch. eResearch accepts advertising and other fees from companies, financial institutions, other third parties, and Institutional and Retail Investors. The purpose of this policy is to defray the cost of researching small and medium capitalization stocks which otherwise receive little or no research coverage. To ensure complete independence and editorial control over its research reports, eResearch follows the CFA Institute’s “Best Practice Guidelines Governing Analyst/Corporate Issuer Relations”.
