- iFAST (SGX:AIY)'s FY25 net profit was ahead of street and MIBG expectations, driven by strong growth in its core wealth management and Hong Kong e-Pension businesses. Similarly, its digital bank, iFAST Global Bank (iGB), achieved a FY25 turnaround with profit of S$3.11m.
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Wealth management momentum remains strong.
- AUA grew 27.9% y-o-y to a record high of S$31.98bn, led by its Singapore business. In our view, this growth is in-line with continued safe-haven flows. iFAST also unveiled its Truly Global Business Model and rebranded its FSMOne Singapore and Hong Kong business as FSMOne global, with the aim to attract more foreign clients to its wealth management platform. This strategy should contribute towards AUA growth in key markets.
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Hong Kong e-Pension business remains on track
- Hong Kong PBT rose 27.6% y-o-y, driven by ePension and wealth management. With Hong Kong’s electronic Mandatory Provident Fund (eMPF) trustee onboarding substantially completed, management expects operational efficiency to improve in 2H26. As the eMPF rollout nears completion, we believe its phased revenue recognition could provide further upside in FY26E.
- Additionally, its ORSO Pension administration business is expected to start contribution in 2H26E, while its Macau ePension business, with S$70m of AUA currently is expected to continue growing. We expect both ORSO and Macau, along with Hong Kong wealth management growth, to contribute a 25% y-o-y increase in Hong Kong’s AUA, which should reach S$4.56bn in FY26E.
Raise target price to S$12.04. Maintain BUY
- Read more at SGinvestors.io.
