InvestmentPitch Media Video Discusses Recent eResearch Buy Recommendation on Peak Positioning Technologies, Parent Company of a Group of FinTech Subsidiaries operating in China - Video Available on Investmentpitch.com
Vancouver, British Columbia--(Newsfile Corp. - March 6, 2020) - Chris Thompson, Director of Research at Toronto-based-eResearch, has published a research report on Peak Positioning Technologies (CSE: PKK) giving the company a one-year target price of $0.20, a premium of 400% to the $0.04 price on March 4th, 2020, the day the report was issued. The full report is available on www.eResearch.com.
Headquartered in Montreal, Quebec, Peak is the parent company of a group of financial technology subsidiaries operating in China's commercial lending industry.
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In March 2017, Peak signed a 10-year agreement with Cubeler Inc. (www.cubeler.com) for the exclusive rights to the Cubeler commercial lending platform, which Peak has branded the Lending Hub, for use in China, subject to a 5% royalty fee. The licensing agreement allows Peak to use, modify, sublicense, and market the platform, as well as to develop and distribute new product and services derived from the platform.
In China, the commercial credit/lending industry includes three major participants: financial institutional lenders, business borrowers and credit/loan brokers. The Lending Hub platform offers credit-matching services between these parties, automating various aspects of the transactions, including financial due diligence and qualification for borrowers, making it faster and easier for a Chinese small or medium enterprise (SME) to obtain credit, while reducing the risk for corporate lenders.
At its core, the Lending Hub is both a FinTech platform and an ecosystem comprised of lenders, borrowers and loan brokers where lenders find borrowers, borrowers find lenders and loan brokers submit leads and earn commissions.
Lending Hub uses a proprietary analytics engine and artificial intelligence to analyze data and qualify prospective borrowers for loans and match them with the appropriate lenders. The data analyzed on Lending Hub comes from the platform's participants and from various private and public data sources including some popular social media platforms, as evidenced by the company's announcement of a WeChat financial data validation feature in the summer of 2019. WeChat is a social media, messaging and payments app that has over 1 billion active monthly users in China.
In addition to Peak's 6 operating subsidiaries, as of January 2020, the Lending Hub ecosystem included, 10 banks, 20 lending companies, 5 loan insurance companies, and 8 strategic partners.
The latest strategic partner, Jinxiaoer, which translates to "Financial Waiter" is a loan brokerage platform with over 40,000 registered sales reps and brand recognition in over 30 cities, including large metropolitan centres such as Shanghai and Shenzhen is expected to fuel loan leads and transactions for the Lending Hub.
Analyst Chris Thompson stated: "Regulators are also now dealing with increasing concerns over the health of the Chinese banking industry as bad debt levels have surged to the highest in at least 15 years, prompting bank seizures and bailouts. This issue of bad debt has put pressure on lenders to be more effective in their lending practices and created an opportunity for lenders to implement Peak's technology. Peak's service offering automates the process by which lenders find and, more importantly, qualify borrowers to help reduce the default rates, and allows banks and lenders to increase the number of loans to meet the imposed minimum SME loan targets with helping to reduce bad debt."
Global Information Technology (IT) spending remains robust as companies look to find ways of increasing productivity while reducing costs.
According to Gartner's latest survey of global IT spending published in July 2019, Global IT spending should reach US$3.74 trillion in 2019, and increase US$140 billion to US$3.88 trillion this year.
Peak management believes it has a competitive advantage in the Chinese market with its dedicated team of experienced business executives with strong ties to China, who understand technology, the Chinese culture and marketplace, and what it takes to be successful in China.
Peak has reported 6 consecutive quarters of revenue growth since Q1/2018 when Peak shifted the business to focus on Financial Services Revenue. With its shares trading at $0.04, a significant discount to eResearch's $0.20 target price, Peak provides an investment vehicle for North American investors looking to participate in the digitization of China's financial services industry.
Investor Relations is handled by Cathy Hume, CEO of CHF Capital Markets, who can be reached at 416-868-1079 ext. 231 or by email at email@example.com.
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