Kun Peng International Ltd (KPEA)

[Potse]

Q1 2022...another good quarter......

Based on the Q4 2021 numbers and the general "vibe" I get from reading accounts of the marketing/financial conferences and meetings, it does appear that business momentum is accelerating. All of this is being accomplished with the company basically having one arm tied behind its back because of the pandemic. The company has had to place most of its focus on its e-commerce platform, rather than the implementation of its smart kiosk growth plans.

The Q1 2022 report is due to be filed in about a month. Should be interesting to see if those fourth quarter numbers are an indication of good things to come.

A comparison of Q3 2021 and Q4 2021 revenue and deferred revenue for CXKJ. It might be worth noting that during the fourth quarter CXKJ showed a profit from operations of $497K........

Q3: Revenue -- $452K Deferred revenue -- $1.78M

Q4: Revenue -- $2.96M Deferred revenue -- $3.12M

CXKJ now has two consecutive quarters showing positive net income. Revenue continued to improve, coming in at about $4.67M and deferred revenue around $3M.

Next marketing and business strategy session for the company is scheduled for March 4, so I would expect they will have a summary on their website sometime next week. Everything I have seen on the company website thus far over the last few weeks/months suggests to me that CXKJ continues to execute its business strategy about as well as can be expected. The breadth of the products/services it offers appears to be expanding. So I am expecting continued good-to-explosive revenue growth.

I increased my position last week with a 10K purchase at 36 cents. Risk/reward at that price level (market cap under $15M) just seems extremely attractive to me. Absent any major setback for the company, I figure at that price I am buying significantly below 1X 2022 price-to-sales. At some point this trading resistance around the 50-cent area should flip and start acting more like a support level.