iFAST

[Curiousparty]

https://links.sgx.com/1.0.0/corporate-an...elease.PDF

The Q1 result was way much better than expected despite the major sell off !!!!!

Going at this rate , the full year result may be an all time best since its IPO !!!

Company has confidently alluded that its full year results would be better than last FY , barring a substantial worsening of the global financial markets from current levels .

In fact , the AUA had already regained the $10bil level again as of 22 April 2020!

Almost fell off my chair when I was reading the results !!!!

Bearing in mind that q1 results had not reflected the JSS support from government !!!
(estimated to be around 2 cents EPS)

Cannot imagine the further positive impact of JSS on ifast net profit from q2 onwards !!!

Ifast is going to embark on an exponential pathway toward AUA of $100bil. Its share price is way too cheap now ....
looking at $3 to $5 in a few years time.


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[¯|_(ツ)_/¯]

nice to note the global sell down is manageable.

C19 is really a good test to see especially how solid is its recurring income.

for those who chiong dividend: 0.75cents (same as last FY).

Let's take a look at an interview on its founder back in 2018 for a sense of who and what he is:


Stay home and stay healthy, everyone.

[pianist]

the AGM on 27th, I suppose it is not allowed to attend in person?

[¯|_(ツ)_/¯]

yes. there is a testing session just ended.

you will need to use Zoom (either apps or desktop browser) to join.
of course, you need to register for zoom account before joining.
can ask questions too.

This is the URL to register for AGM Monday 27 Apr@10am
http://www.ifastcorp.com/ifastcorp/artic...M2020.html
(click to register)

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fyi, for those keen, there was a declared final dividend 0.9 cents to be given out.
xd 4 May 2020.

this morning declared dividend 0.75 cents
xd 22 May 2020

Gupta - I think this is exactly what iFAST can value-add to Singapore digital journey.



Stay home, stay safe and stay healthy, everyone.

[Curiousparty]

There seems to be many people out there who are still not very clear on ifast business models and how sustainable or scalable or how resilient the models are against the backdrop of the massive sell off seen in March 2020.

Hopefully Q1 results have offered a quick glimpse and the upcoming results would even be more exciting as the cylinders fire off on all market fronts especially China .

3 Indicators iFast seeing strong inflow of new business:
- Clients number 460,000 up from 420,000 3 months ago
- cash in trust went up to $676m, up 65% from $410m
- AUA fell only 4.6% despite major markets falling over 20%

Seems to be some panic BUYING of ifast today !!!




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[pianist]

yes. there is a testing session just ended.

you will need to use Zoom (either apps or desktop browser) to join.
of course, you need to register for zoom account before joining.
can ask questions too.

This is the URL to register for AGM Monday 27 Apr@10am
http://www.ifastcorp.com/ifastcorp/artic...M2020.html
(click to register)

How to identify the meeting id?

[karlmarx]

A lot of its past and recent success has been due to its competitive pricing, and absence of competition.

Today, Phillips offers the same platform services for both the B2C and B2B2C segments, and at much more competitive (or no) fees. If Phillips does not receive any sales and platform fees from the consumer, this means that they are only receiving trailer fees from the Fund Managers.

Since Phillips does not receive fees from the customer, this means that they probably share the trailer fees with the FAs, for its B2B2C segments.

iFAST receive fees from both the customer (whether through FAs or otherwise), and the FMs.

So Phillips is probably earning only half of what iFAST does, for providing similar service.

For now, the Financial Advisors, which iFAST depends for much of its B2B2C revenue and profit, will likely remain with them. But in the longer term, there is nothing stopping the FAs from moving their business to Phillips, especially if doing so will mean lower (or no) fees for their customers.

For the B2C segment, iFAST looks like it is able to provide much better research material than Phillips. But Phillips' no fees proposition is certainly something iFAST should watch out for, especially if Phillips sustains its pricing strategy.

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The market for wealth management in Singapore is huge.

But most of the market is captured by the (local) banks and life insurers.

The boutique FAs which iFAST depend on to grow their AUA grow through word-of-mouth networks; they lack the cachet and financial strength to not only advertise their services to the mass market, but also to attract sales agents.

So it makes a lot of sense for them to have made early moves into overseas markets.

In the Malaysian and Hong Kong markets, iFAST has done well to grow them profitably. (Phillips operate in these markets as well, but I'm not sure if they offer the no fee unit trust platform in those markets as well.)

In the Chinese market, iFAST has spent 5 years and lots of money, but still struggles to establish a profitable business. Given the amount of time spent and local competition, it does not look likely that their Chinese business will be a roaring success in the next few years.

Although they have partnered RFO to make another attempt at cracking the market, there is little to suggest that the probability of success will be high, since RFO is also a relatively new outfit.

iFAST also spent some 10 years in India, where it partnered with Deutsche. AR19 shows that its India AUA is about half a billion, and the unit does not appear to be profitable.

So iFAST's overseas forays are a mixed bag. While it has done well in Singapore, it certainly isn't the case that success follows wherever they bring their business model to.

===

If iFAST wins a digital wholesale banking license, there certainly will be growth prospects.

But the synergies between personal wealth management and SME banking is not apparent to me.

I suppose there could be some SME customers using part of their excess cash to buy low-risk unit trust. But I'm not sure if the market for it will be a big boost to AUA.

But iFAST also seems to be departing from its familiar grounds by entering a business it has no prior experience of; underwriting SME loans.

In its FY19 AR, it only made short mention of attracting foreign currency deposits, and avoiding competition for SGD deposits. How that fits with its DWB and/or wealth management strategy is still not apparent.

===

iFAST's recurring revenue indeed looks like an easy business. But I'm not so sure it can grow its AUA, revenue, and margins as much as its valuation suggests.

[¯|_(ツ)_/¯]

27 Apr 2020 10am AGM via Zoom.
The ID or Topics is "iFAST Corp AGM 2020"
https://zoom.us/webinar/register/WN_6zyG...Vgqvl29q-A
(click to register)

1. You need to create a Zoom account (FOC) and valid email address.
2. You can choose to use browser instead of download the apps by clicking on "join via browser" link at the center bottom.
3. You will be prompted with a individual passcode before invited to the ppt.
aka you need to register before attending Zoom session.

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With C19 dragging on, the systemic and operational risk of a business which most of the time is theory is putting to test.
With the oil crisis, same thing, lots of risks and assumptions that we thought its in theory is also putting into testing mode.

We know that both C19 and oil crisis will be ending soon.
We hope that our favourite companies which we had put in our hard earn $$$ can emerged stronger and more competitive after life go back to norm.

One of the learning while looking at the impact of CB, MCO, lock down etc shows that investing into a company operating in essential services might make sense.
Of course, what I don't mean is choosing company operating in essential services and invest in them.

Begin with an end in mind, the company first and foremost must be a solid one, aka ROE, ROA, PE, PB, increasing dividends (too)?
iFast in this case, stand out among all the companies.


There are something special about iFast which other brokerage house don't have.
I mean, they all looks very similar but not exactly the same.

I feel that iFast has a strong vision, strategy and ambitions that would make Singapore stand out in the Global FinTech market.
iFast demonstrated it's strong operational capability.
It's collaborative platform, powered with innovated technology and sharp focusing on its clients and customers.
As mentioned before, there are so many FinTech start up in Singapore.
Unfortunately, they remained as a start up in Singapore.

Again, I feel that, given a chance, iFast would be able to lead Singapore Inc into a new potential growth area.
Steady!

My view and not a call to buy or sell.
Declaration: Other than Micro-Mechanics, iFast is one of my top 3 holdings.

[donmihaihai]

The result is good precisely because of crisis. The investing/ trading mindsets.

https://links.sgx.com/FileOpen/iFAST_Res...eID=607725

page 25 & 26 provide a good picture. page 25 also say how good it was for ifast during 2007/2008. So I won't be surprise how good 2020 will be for ifast, follow by falling of the cliff - just like 2009.

These non-recurring trading revenues has lower profit, which explain the reduction in GP margin. operating leverage push up the net margin.

[Curiousparty]

Phillips has been too slow to realize the running away of many of its clients ....

To say the least, Phillips has been badly mauled

Btw, India business is profitable. Losses were from Providend FA

Ifast gets the big fishes - family offices , IAMs, etc ... (details of the entities are usually not revealed.....secret ingredients)

More importantly, Phillips is not listed and hence more opaque, especially in light of the recent case of OK Lim oil trading business etc

On ifast overseas ventures , it is always a “mixed bag” no matter how and when we look at it . Because by the time China breakevens, ifast will be making inroads in new markets eg Vietnam, etc etc . It is understandable and reasonable that the initial forays may burn cash . Hahaha



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