Too Fast ?
iFAST Corporation Ltd is a Fintech wealth management operator. Services provided by the firm includes investment administration & transactions services, IT services, research & training and backroom functions to financial institutions.
Her operation covers Singapore, Malaysia, India, Hong Kong and China.
Gross revenue mix in FY20:
Singapore - 64%
Hong Kong - 26%
Malaysia - 9%
China - 1%
Financial (FY December)
Gross revenue grew 35% in FY20 to $169M driven by shift towards digitisation due to COVID-19. This happens not only in iFAST but also most financial institutions globally.
While gross margin remained relatively stable; increase scale enable the firm to record lower relative expenses of 38.4% vs 42.5% average past 3-years. As a result, net margin increased from 7.6% in FY19 to 12.4% in FY20.
Geographically, all locations recorded double-digits growth. In absolute dollars, Singapore remained the main driving force, increasing by almost $30M YoY.
1Q21 vs 1Q20
Gross revenue grew 44%, powered by strong showing in Singapore, increasing $7M QoQ.
Balance Sheet is relatively healthy with cash of $33M, little debt and a current ratio of 1.5 in 1Q21.
In Jan21, iFAST partnered PCCW Solutions to successfully tendered for a eMPF platform in Hong Kong. In the midst of finalising contractural details; contribution is expected to start from 2023.
The company is also currently in the process of bidding for Malaysia Digital Banking licence. Results of winner will be known in early 2022.
In China, the firm had been building her brand since 2016 among potential customers in the wealth management industry.
In Feb21, the company launched a private fund investing in a portfolio of China mutual funds & private funds in the secondary market.
Price appear to be running ahead of fundamentals with P/E at about 90. Historical upper limit was around 40.
It is premised on the firm winning a competitive licence for Malaysia digital banking where results is known only in 2022.
Meanwhile eMPF project in Hong Kong contractual details is still unknown with activities starting only in 2023.
Brand incubation in China is at an early stage. Private fund launched recently is difficult to valuate.