iFAST

[Curiousparty]

https://www.theedgesingapore.com/capital...ations-dbs

Local fintech company and digital bank hopeful iFAST Corp is fast becoming a “beneficiary of digitalisation”, says DBS Group Research in a July 24 report. For 2Q2020, iFAST Corporation’s earnings surged 84.7% y-o-y to a record high of $4.53 million, with assets under administration (AUA) growing 11.5% year-to-date.
With results “above expectations”, DBS Group Research has revised its earnings forecasts for FY2020F and FY2021F up 41% and 44% respectively, with analyst Ling Lee Keng maintaining “buy” on the company with an increased trade price of $2.35, up from $1.27.

“Going forward, we continue to expect the acceleration of digital adoption in the wealth management industry to be a positive factor underpinning the growth prospects of iFAST,” says Ling.

DBS has raised AUA growth assumption to 12% p.a. for FY2020 and FY2021, from 8%. The company still has room for AUA growth, says Ling, as the current AUA level remains low at about 10% of the approximately $100 billion in assets under management (AUM) of the authorised and recognised collective investment schemes in Singapore.

Spikes in non-recurring revenue but not so much in recurring revenue

Maybe u can assist to list out the year to year recurrent revenue or recurrent profit improvement over the years, for the benefit of all.

Many tks.


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[EnSabahNur]

https://www.theedgesingapore.com/capital...ations-dbs

Local fintech company and digital bank hopeful iFAST Corp is fast becoming a “beneficiary of digitalisation”, says DBS Group Research in a July 24 report. For 2Q2020, iFAST Corporation’s earnings surged 84.7% y-o-y to a record high of $4.53 million, with assets under administration (AUA) growing 11.5% year-to-date.
With results “above expectations”, DBS Group Research has revised its earnings forecasts for FY2020F and FY2021F up 41% and 44% respectively, with analyst Ling Lee Keng maintaining “buy” on the company with an increased trade price of $2.35, up from $1.27.

“Going forward, we continue to expect the acceleration of digital adoption in the wealth management industry to be a positive factor underpinning the growth prospects of iFAST,” says Ling.

DBS has raised AUA growth assumption to 12% p.a. for FY2020 and FY2021, from 8%. The company still has room for AUA growth, says Ling, as the current AUA level remains low at about 10% of the approximately $100 billion in assets under management (AUM) of the authorised and recognised collective investment schemes in Singapore.

Spikes in non-recurring revenue but not so much in recurring revenue

Maybe u can assist to list out the year to year recurrent revenue or recurrent profit improvement over the years, for the benefit of all.

Many tks.


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sure. Actually the company did it in the slides already. 
Link below, page 28, for your convenience.

https://links.sgx.com/FileOpen/iFAST-Res...eID=624659

Anyway for 1H2020

YoY Change (%) FY2016 FY2017 FY2018 FY2019 1H2020
Recurring net revenue +0.2 +18.0 +18.0 +9.6 +7.9
Non-recurring net revenue -13.2 +42.2 +33.0 +8.5 +93.4
Total net revenue -2.0 +21.5 +20.6 +9.4 +23.1

[Curiousparty]

Many tks for the tabulation.

The beauty of platform business like ifast is that once the critical mass is reached, incremental revenue increase all goes to the net profit as marginal cost is close to zero!

Watch out for the China segment . If u plot the trajectory of China AUA every quarter for the past few years, u can notice that the jump from Q1 2020 to Q2 2020 was very significant.

I expect the critical mass AUA for China segment to be reached in around mid 2021. Need a bit of patience here ....the positive effort of Raffles Family Office is going to take the market by storm soon...

The net gain in EPS from China segment (turning from losses of 4.5mil to zero loss) = 1.7 cents or gain in valuation of 40 cents assuming PE of 25.

Once China segment turns into massive profit, one can only imagine the huge net profit !!!


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[dreamybear]

There is a The Edge article about PhillipCap. May be useful for valuebuddies who wants to compare vis-à-vis iFast.

==============

Market cycles come and go but 45 years on, PhillipCapital stays true as long-term partner with clients
Published on Fri, Jul 17, 2020
https://www.theedgesingapore.com/issues/...-long-term

[Curiousparty]

Buying a “bank” at below $2 or market cap of $540 mil is dirt cheap !!!!

Look at bank profits and their eps per quarter . Ifast only needs to capture a small portion of that and it will be very synergistic with its current ecosystem of Wealth management ..


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[specuvestor]

Globally banks' NIM and NII is falling and likely will continue for next 2 quarters but trading income was very strong. Kudos to Curiousparty for picking the right theme at right time but think probably don't over "goreng" it China operations which is cut throat continue to bleed since I met them about 4 years back when they first started their foray

[Curiousparty]

Globally banks' NIM and NII is falling and likely will continue for next 2 quarters but trading income was very strong. Kudos to Curiousparty for picking the right theme at right time but think probably don't over "goreng" it China operations which is cut throat continue to bleed since I met them about 4 years back when they first started their foray

The quantum leap is coming soon . Let’s sit back and watch the China segment now until 2021.

It is not about cutthroat . It is the rudimentary method through which wealth management products are sold , that is painstakingly slow for China segment to churn sufficient volume to breakeven . With the JV with RFO , we can relax and show the watch . Tighten the seat belt

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[Curiousparty]

https://research.sginvestors.io/2020/07/...07-24.html

DBS revised upward the price target from $1.27 to $2.35!

[Curiousparty]

https://www.businesstimes.com.sg/technol...ion-system

Hong Kong close to picking winner to digitise pension system.


Telecommunications provider PCCW is working with Singapore-based iFAST Corp as part of its bid.

not sure to what extent the tremendous positive impact on iFast would be if won...

[Curiousparty]

the DB license is a very precious asset. Profit aside, once the DB license is secured, the enterprise value associated with iFast will leap by a sizable quantum.
this is one point. A lot of people think it is very easy to set up a broker firm and compete with iFast. the secret ingredient of iFast is not the B2C segment. It is the B2B segment => this is where all the mega big fishes are.

Of so much Fintech companies out there, why does Hong Kong billionaire Richard Li's PCCW choose to partner with iFast? Why does RFO choose to do JV with iFast in China?
(look at iFast's track record in Malaysia. think it developed some IT system for the pension/CPF-equivalent there too.)

China segment - As mentioned many times, this is a segment with very very very big potential. Yes, people can throw cold water and said iFast is burning cash year after year. The critical point is coming soon. Watch the show until mid 2021. this segment can potentially be several times that of Singapore's AUA (easily).