iFAST Corporation - CGS-CIMB Research 2023-02-16: Project Delayed; Downgrade To REDUCE

• iFAST (SGX:AIY) posted 4Q22 PATMI of S$1.3m (-38% q-o-q/-82% y-o-y), below our/consensus estimates by 34%/38%. The miss was due to higher-than-expected opex (a combination of costs to improve platform capabilities and scale up its business, and for banking operations) and weaker net financing income. See iFAST's announcement dated 14 Feb 2023.
• Read this at SGinvestors.io -
• iFAST declared a final dividend of S$0.014, bringing total dividend to S$0.048 in FY22. See iFAST's dividend history. Higher dividends will likely be a prospect only from FY24F onwards when iFAST’s new initiatives ramp up.

Stemmed the AUA decline in 4Q22; net inflows stayed positive

• Read this at SGinvestors.io -
• By product, bonds recorded the strongest showing in 4Q22 (+32% q-o-q) as clients capitalised on the surge in short-term rates.
• We think that iFAST’s multi-product offerings contributed to the resilience in overall net revenues (flattish y-o-y) despite turbulent market conditions.

We think that tight labour conditions could slow eMPF progress

• Read more at SGinvestors.io.

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/.