(CapitalWatch, July 25, New York) Recently-listed Hong Kong fintech firm Zhong Yang Financial Group now goes by Top Financial Group Ltd. (Nasdaq: TOP) and its stock has taken a beating since the name change.
TOP shares ended 16% lower on Monday, at $18.42 apiece, after taking a 21% plunge on Friday, the day its name change to a more anglicized one went into effect. Still, TOP stock is trading significantly higher than its IPO issue price of $5 per share and is up 15% overall since Day One.
Known as Zhong Yang at the time, the company raised $25 million in its IPO on the Nasdaq on June 1. The stock took a wild rally early on, skyrocketing as high as $50.97 per share in mid-June; since, it has gradually descended in a sign that the craze has subsided and the overall negative market sentiment is taking over.
The company was among the first three with operations in China or Hong Kong to have completed an initial public offering in New York this year. Over the past few months, China has shown a more lenient stance on overseas listings after a brutal regulatory overview launched a year ago that forced many firms to either shelve their listings or pursue a public offering closer to home.
Top Financial is an online trading platform aiming to compete with brokers Futu (Nasdaq: FUTU) and Up Fintech (Nasdaq: TIGR) for Asian investors worldwide. However, Top Financial appears to focus more on the institutional base and relies on a handful of large clients. During the fiscal year ended March 2021, the firm said its top five customers accounted for 92% of its total revenues. In the half-year through September 2021, that percentage increased to 95%.
In the half-year through September 2021, Top Financial booked $3.2 million in revenue, down significantly from $8.7 million in the six months through September 2020. Net income was $900,000 compared with $2.4 million in the same period of 2020, according to the prospectus. In the 12 months through March 2021, Top Financial booked $16.9 million in revenue, a 2% year-over-year increase, on doubled income of $5 million.