iFAST Corporation - Growth Initiatives Intact Despite Near Term Hiccups
- iFAST (SGX:AIY) reported a 2% decline in Assets Under Administration (AUA) to S$18.6bn as at end March 2022, mainly affected by the weak global financial markets. Net margin was also lower as the group continues to prepare to invest in the next phase of growth.
- Despite near-term hiccups, we remain positive on its longer-term growth potential. iFAST has set a four-year plan to enhance its current platform, including adding digital banking and other capabilities, and to accelerate the growth of the Hong Kong business.
- We maintain our positive view on iFAST on the back of the strong growth momentum from 2023, propelled by the Hong Kong business. There is room for AUA to grow further. iFAST is well poised to capture more market share in its key market Singapore, where its share is just 10% of the ~S$128bn in Assets Under Management of the collective investment schemes.
- We cut iFAST's FY22F/23F earnings forecast by 17%/20%. Maintain BUY rating on iFAST with a lower target price of S$8.75, on lower revenue assumption and higher costs. Our target price for iFAST is based on the Discounted Cashflow (DCF) valuation method to capture its steadily growing cashflows.
- Where we differ: We are more optimistic on iFAST given its scalable business model and drive towards digitalisation to propel the group to greater heights.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Lee Keng LING DBS Group Research | https://www.dbs.com/insightsdirect/ 2022-04-25 2022-04-25
Previous report by DBS Research:
2022-01-10 iFAST Corporation - Adding Digital Bank To Fintech Ecosystem
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