IFAST Corporation Limited Post Result Announcement

iFAST Corporation Limited has released its FY2020 results on 5th February 2021. In this article, we will be looking at the highlights of their result announcement and the management outlook for the group.

About iFAST Corporation Limited

iFAST Corporation Limited (“iFAST”) is a wealth management Fintech platform, with Assets Under Administration (“AUA”) of S$14.45 billion as of 31st December 2020.

Incorporated in the year 2000 in Singapore and listed on the SGX-Mainboard in December 2014, the Group is also present in Hong Kong, Malaysia, China and India.

The Group has built a well-established Fintech ecosystem connecting its product providers and clients. iFAST Corp holds the requisite licences in the various jurisdictions it operates in to provide a wide range of products and services.

As at end December 2020, the Group offers access to over 12,000 investment products including over 7,800 funds from over 270 fund houses, over 1,400 bonds, stocks and ETFs listed on the Singapore, Hong Kong and US stock exchanges, as well as services including online discretionary portfolio management services, research and investment seminars, Fintech solutions, and investment administration and transaction services.

Here's a look at iFAST’s fintech ecosystem:

Asset Under Management

iFAST's AUA grew 44.5% year-on-year and 14.8% quarter-on-quarter to S$14.45 billion as of 31 December 2020.

From the above pie chart, 69.2% of iFAST’s AUA came from the Singapore market while the next biggest market contributor was Hong Kong, which has a percentage of 18.4%. In terms of AUA breakdown by-products, Unit Trusts holds the biggest weightage at 75.4% while Stocks & ETFs came in second with a weightage of 12.9%.

FY2020 Result Highlights

For FY2020, iFAST’s revenue came in at S$169.93 million, which is an increase of 35.5% year-on-year. The growth in revenue can be seen from the combined effect of improved market sentiments in recent quarters and an increase in the number of transactions.

Furthermore, the continuous efforts in improving the range and depths of products and services brought to clients and business partners in recent years also contributed to the revenue growth.

On the back of record-high revenue achieved in FY2020, net profit attributable to owners of the company grew by 122.3% year-on-year to S$21.15 million.

For FY2020, iFAST’s total dividend per share came in at 3.3 Singapore cents, a 4.8% increase compared to last year. Based on the share price of S$6.50, iFAST’s indicative dividend yield stands at 0.51%.

Breakdown in Revenue for FY2020

For iFAST’s Business-to-Customer business (“B2C”) division, it has achieved a spectacular increase of 63.6% year-on-year to S$34.19 million. These were due to continuous increases in transaction fees resulting from increased investment subscription from customers especially in exchange-traded funds (“ETFs”) and stocks, service fees arising from the provision of currency conversion administration service.

For iFAST’s Business-to-Business (“B2B”) division, it has achieved a modest growth of 29.9% year-on-year to S$135.73 million. Besides the increase in transaction fees resulting from increased investment subscription from customers in ETFs and stocks and service fees arising from the currency conversion administration service provision, the trade volume of customers’ investment subscription in Unit Trusts grew more significantly in the period.

Management Outlook

iFAST’s management team believes that the robust growth seen in FY2020 was resulted from past investments in building up a strong integrated digital wealth management platform.

The Group will continue to push on various initiatives in all existing markets to ensure that the Group’s medium to long term growth prospects will remain strong.

The 44.5% growth in the Group’s AUA in FY2020, as well as the continuing positive momentum in net inflows of client assets, will serve as tailwinds for the Group’s business performance as it enters 2021.

Barring unforeseen circumstances, the Group expects further growth in business performance and targets to improve operating margin in 2021.

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