iFAST Corp (IFAST SP) Stock Analysis: 1Q25 Results, BUY Upgrade, and Target Price

UOB Kay Hian Private Limited

Tuesday, 29 April 2025

iFAST Corporation: Solid Growth Drives Upgrade to BUY

iFAST Corp Ltd (IFAST SP) Overview

iFAST is a wealth management fintech platform headquartered in Singapore, providing a comprehensive range of investment products and services to financial advisory firms, financial institutions, banks, internet companies, multinational companies, as well as retail and high net worth investors in Asia. [[1]]

Key Highlights

• Upgrade: Upgraded to BUY
• Share Price: S\$6.35
• Target Price: S\$7.28
• Upside: +14.6%

Company Description

iFAST is a wealth management fintech platform headquartered in Singapore. It provides a comprehensive range of investment products and services to financial advisory firms, financial institutions, banks, internet companies, multinational companies, as well as retail and high net worth investors in Asia. [[1]]

Stock Data

• GICS sector Financials
• Bloomberg ticker: IFAST SP
• Shares issued (m): 302.8
• Market cap (S\$ m): 1,922.9
• Market cap (US\$m): 1,463.6
• 3-mth avg daily t’over (US\$m): 7.4

Price Performance (%)

• 52-week high/low S\$ 8.83/S\$ 6.02
• 1mth (14.4)
• 3mth (14.0)
• 6mth (18.1)
• 1yr (10.6)
• YTD (14.3)

Major Shareholders %

• Lim Chung Chun (CEO) 20.0
• Singapore Press Holdings 11.9
• Lim Wee Kian 6.6

Financial Data

• FY25 NAV/Share (S\$) 1.31
• FY25 Net Cash/Share (S\$) 2.19

1Q25 Results: Solid Growth in AUA and iGB Profit

iFAST’s 1Q25 earnings of S\$19m (+31% yoy) slightly missed expectations, forming 19% of the full-year forecast. Revenue rose 24% yoy, driven by growth in its core wealth management platform business and iGB’s profit turnaround. AUA continues to break records, reaching S\$25.7b (+3% qoq). iFAST lowered its 2025 PBT guidance for its Hong Kong operations by 24% due to resource ramp-up. A higher interim DPS of 1.6 S cents was proposed. The recommendation is upgraded to BUY with a reduced target price of S\$7.28. [[1]]

Key Financials: 1Q25 vs 1Q24

Detailed Results Analysis

• Slightly Below Expectations: iFAST’s PATMI jumped 31% yoy (flat qoq) to S\$19m, buoyed by a 24% yoy increase (+3% qoq) in gross revenue to S\$107m. [[2]]
• The yoy profit growth was mainly driven by its UK-based iFAST Global Bank (iGB), which posted a second consecutive quarter of profits, and the continued growth in its core wealth management platform business. [[2]]
• 1Q25 revenue and PATMI accounted for 18% and 19% of forecasts respectively, slightly below expectations from higher-than-expected operating expenses from the Hong Kong (HK) ePension division on resource ramp-up. [[2]]
• Higher Interim Dividend Proposed: iFAST proposed a higher interim DPS of 1.6 S cents vs 1.3 S cents for 1Q24, representing a 25% payout ratio (1Q24: 27%). [[2]]
• Record AUA: iFAST’s assets under administration (AUA) continued to grow to S\$25.7b as of end-Mar 25 (+22% yoy; +3% qoq), supported by net inflows of S\$938m (+36% yoy; -6% qoq). [[2]]
• Singapore continues to remain a key growth driver for AUA, reaching a record S\$18.1b (+19% yoy; +3% qoq) or 70% of group AUA. [[2]]
• iGB’s Turnaround: iGB achieved a S\$1m net profit (vs a S\$2.3m loss in 1Q24), more than doubling its S\$0.4m profit in 4Q24. [[2]]
• Gross revenue surged 105% yoy to S\$20m (+13% qoq), from a strong 124% yoy growth in customer deposits to S\$1.15b (+14% qoq). [[3]]
• The bank continues to launch new products like a debit card for multi-currency accounts to engage more local customers. [[3]]
• The EzRemit division has also hit a record-high transaction volume, contributing 74% yoy growth in non-interest commission and fee income in 1Q25. [[3]]

Key Financials Forecast

HK Contribution and ePension Division Expenses

• For 1Q25, gross revenue from iFAST’s HK business grew 13% yoy to S\$35m (flat qoq), while net revenue rose 5% yoy to S\$29m (+3% qoq). [[3]]
• This is in line with the rise in HK’s AUA to S\$3.1b (+24% yoy; +1% qoq). [[3]]
• However, profit before tax (PBT) fell 7% yoy to S\$12m (-6% qoq), due to higher operating expenses for the ePension division from a ramp-up in resources. [[3]]
• Management expects the top- and bottom lines of the ePension division to be higher in 2H25, from increased onboarding of the eMPF platform. [[3]]

Stock Impact

• Overall HK Operations Target Revised Downwards: Management has lowered its PBT guidance for the HK operations by 24% yoy, from >HK\$500m to >HK\$380m, citing higher-than-expected operating expenses. [[4]]
• Revenue guidance remains unchanged at >HKS\$1.2b. This reduces expected PBT margin from 41% to 32%, but still records a substantial 23% yoy growth in 2025 PBT due to the scheduled full onboarding of schemes by end-25. [[4]]
• The group has also provided a promising 2026 outlook of double-digit yoy growth in both revenue and PBT from HK operations. There is room for margin expansion in 2026 as efficiency improves. [[4]]
• Foray into Thailand: In Mar 25, iFAST partnered with TSFC Securities, a government-linked securities financing firm in Thailand, to expand its geographical presence. [[4]]
• By leveraging TSFC Securities’ extensive financial network and iFAST’s expertise in developing a global bond marketplace, they will create a co-branded fintech platform for Thai brokers and asset managers to trade offshore bonds. [[4]]
• This aligns with iFAST’s three-year plan (2025-27) to build a “Truly Global Business Model”, particularly with the scaling of its AUA to S\$100b by 2028-30. [[4]]

Earnings Revision/Risk

• Lowering HK’s ePension Division’s PBT Estimates: While the HK ePension division has contributed significantly, only six out of 24 schemes under the MPF System have been onboarded in ascending order of AUM. [[4]]
• Given the technical and operational risks for schemes with larger AUMs as well as the ongoing ramp-up in staff headcount, a conservative outlook is maintained. [[5]]
• Despite the stronger-than-expected performance in 2023/24, the division’s PBT contribution is forecast at a 10% discount to the guidance. [[5]]
• 2025-27 earnings forecasts have been revised downward by 13-14%, after factoring in the cut in profit guidance for the overall HK operations. [[5]]
• For AUA outlook, iFAST has continued to hit record highs, and around a 20% yoy growth is projected for 2025-27. [[5]]

Valuation/Recommendation

• Upgrade to BUY with a 12% lower PE-based target price of S\$7.28 (S\$8.30 previously), based on 25x 2025 EPS valuation or 0.5SD below its historical mean. [[5]]
• The prospects of iFAST are sanguine, supported by a three-year earnings CAGR of 26.4% from 2025-27. [[5]]
• The stock is also trading at 19.7x 2025F PE, at around a 20% discount to its peers’ average of 24.9x 2025F PE. [[5]]

Share Price Catalyst

• Higher-than-expected growth in AUA. [[5]]
• Faster onboarding of trustees to the eMPF platform. [[5]]
• Lower-than-expected costs incurred for the eMPF platform. [[5]]

HK Operations’ Actual and Target Performance

Key Metrics