iFAST Corporation - CGS-CIMB Research 2022-04-26: Near-Term Pain, Long-Term Gain

iFAST Corporation - Near-Term Pain, Long-Term Gain

  • iFAST Corporation (SGX:AIY) recorded PATMI of S$5.7m in 1Q22 (-20% q-o-q, -35% y-o-y), 30%/35% below our/consensus estimates. The miss was primarily due to softer-than-expected revenue growth on the back of poor market conditions.
  • We factor in more substantial ePension contributions from FY23F onwards as management sees clearer opex visibility amid the implementation phase. While we factor in the expedited earnings uplift, we nonetheless include in a ~20% discount to these contributions as we remain cognisant of execution risks during the operations phase (FY24F onwards).
  • Reiterate ADD call on iFAST with lower target price of S$7.60 as we look past near-term headwinds due to persistent market volatility and towards ~50-60% EPS growth in FY23-24F (largely from HK).
  • iFAST declared an interim dividend of S$0.01 in 1Q22 (vs 1Q21: S$0.01) – We cut FY22F dividend forecast to S$0.048 (58% payout, vs FY21: S$0.048, 43% payout).

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.

Andrea CHOONG CGS-CIMB Research | https://www.cgs-cimb.com 2022-04-26
SGX Stock Analyst Report ADD MAINTAIN ADD 7.60 DOWN 9.700

Previous report by CGS-CIMB:
2022-02-16 iFAST Corporation - Looking Past Near-Term Headwinds

Target prices by 2 other brokers at iFAST Target Prices.
Listing of broker reports at iFAST Analyst Report.

Relevant links:
iFAST Share Price History,
iFAST Announcements,
iFAST Dividends & Corp Actions,
iFAST News Articles


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