KVB Kunlun Releases First Post-IPO Financials, Q3 Stalls But 2013 Strong

Among the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term IPO class of 2013 is Hong Kong listed KVB Kunlun Financial Group (KVB). A provider of forex and financial product brokerage services, primarily to Chinese and Asian investors, KVB recently released its first set of financials since going public on the Hong Kong Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term’s Growth Enterprise Market (GEM) on July 3rd, 2013.

During the quarter ended September 30th, KVB posted after tax earnings of $347,226 (HKD2.691M) on revenues of $7.76 million (HKD36.9M). Compared to the same period in 2012, revenues grew 11%, on the back of a 23% rise in ‘Leveraged FX and other trading income’. Similar to other forex brokers, KVB’s Q3 figures fell from performance achieved in the first half of the year, as revenues declined 14.4% from Q1 and Q2 averages.

Overall, for the nine months ended September 30th, KVB has reported net income of $3.05M (HKD26.64M). At a recent share price of HKD 0.40, the broker has a market cap $102.8M. Calculating Q4 earnings based on the first nine months of the year averages provides earnings per share HKD 0.0178, representing a PE multiple above 20. At such a multiple, we believe shares of KVB are trading at an overall market premium due to its exposure to the Chinese and Asian growth markets.