UOB Kay Hian
Date of Report: 29 July 2025

iFAST Corporation Surges on Earnings Momentum: Target Price Raised, Growth Prospects Brighten

Overview: Strong 2Q25 Performance Drives Upward Revision

iFAST Corporation, a leading Singapore-based fintech wealth management platform, has delivered a standout performance in 2Q25, prompting UOB Kay Hian to raise its target price by 36% to S\$9.92. The company’s net profit attributable to shareholders (PATMI) soared by 38% year-on-year, reaching S\$22 million for the quarter. This robust result, bolstered by stronger contributions from its Hong Kong ePension business, a turnaround at iFAST Global Bank (iGB), and steady core platform growth, slightly exceeded analyst expectations. Investors were further encouraged by a 33% increase in the interim dividend and a record-high Assets Under Administration (AUA) of S\$27.2 billion.

Company Background: A Pan-Asian Wealth Management Powerhouse

iFAST is a digital wealth management platform headquartered in Singapore, offering a wide range of investment products and services. It serves financial advisory firms, institutions, banks, internet companies, multinational corporations, and both retail and high-net-worth investors across Asia.
Key data:

• Share Price: S\$8.17
• Target Price: S\$9.92 (previous S\$7.28)
• Market Cap: S\$2.48 billion (US\$1.93 billion)
• Shares Issued: 303.7 million
• 2025 NAV/Share: S\$1.31
• 2025 Net Cash/Share: S\$2.19
• Major Shareholders: Lim Chung Chun (CEO) 20.0%, Singapore Press Holdings 11.9%, Lim Wee Kian 6.6%

2Q25 and 1H25 Financial Highlights

The company’s impressive 2Q25 and 1H25 performance reflects strong underlying business momentum.

• 2Q25 revenue: S\$103m (+28% yoy; +13% qoq)
• PATMI: S\$22m (+40% yoy; +16% qoq)
• 1H25 revenue and PATMI: 43% and 48% of full-year estimates, respectively

Dividend and Payout Policy

• Declared a 33% higher second interim dividend of 2.0 S cents/share (2Q24: 1.5 S cents/share)
• Management guides for a full-year dividend of at least 8.0 S cents/share (+35% yoy), a 26% payout ratio for 2025, in line with 2024

AUA Hits All-Time Highs

• AUA climbed to a record S\$27.2 billion as at end-June 2025 (+22% yoy; +6% qoq)
• Quarterly net inflows reached S\$1.29 billion (+65% yoy; +37% qoq)
• Singapore remains the largest contributor, with AUA at S\$19.2 billion (+20% yoy; +6% qoq), representing 71% of group AUA
• Long-term AUA target: S\$100 billion by 2028-2030

iFAST Global Bank (iGB) Delivers Third Consecutive Quarterly Profit

• Customer deposits rose to S\$1.45 billion as at end-June 2025 (+124% yoy; +26% qoq)
• Net revenue doubled year-on-year to S\$9.5 million
• Net profit in 2Q25: S\$0.7 million (vs S\$1.5 million loss in 2Q24), lower than 1Q25 due to seasonal remittance patterns
• Net interest income reached S\$4.3 million (+131% yoy; +10% qoq)
• Management expects additional service rollouts by early 2026

Hong Kong ePension: The Growth Engine Accelerates

• 2Q25 gross revenue: S\$46 million (+33% yoy, +29% qoq)
• Net revenue: S\$40 million (+40% yoy, +38% qoq)
• PBT: S\$16 million (+18% yoy, +27% qoq)
• 1H25 gross/net revenue and PBT: 39%, 40%, and 43% of management’s full-year guidance, respectively
• AUA: Slight qoq dip of 0.8% to S\$3 billion (+13% yoy), reflecting onboarding-driven growth
• As at end-Jun 2025, 11 out of 24 MPF schemes onboarded; five schemes onboarded in 2Q25
• PBT margin eased 0.4ppt qoq to 34.4% due to higher operating expenses (staffing, leasing)

ePension Onboarding and Growth Outlook

• Since 2Q25, three more MPF schemes onboarded, totaling 14 out of 24
• The remaining 10 schemes are scheduled for onboarding by year-end 2025
• 2H25 Hong Kong PBT contributions expected to grow by at least 20% half-on-half due to increased onboarding
• Contributions from the ORSO platform delayed to 2026; Macau pension project expected to grow gradually

Earnings Upgrades and Projections

• 2025-2027 earnings forecasts raised by 3-5% due to conviction in ePension ramp-up
• Previous 10% discount to management’s PBT guidance for ePension removed as onboarding progresses
• AUA growth projection maintained at 20% yoy for 2025-2027

Valuation and Recommendation

• Target price: S\$9.92 (36% increase), based on 29x 2026F EPS (previously 25x 2025F EPS), 0.5 SD below historical mean
• BUY rating maintained in light of strong ePension momentum, record AUA growth, and platform scalability

Share Price Catalysts

• Stronger-than-expected growth in AUA
• Faster onboarding of trustees to the eMPF platform
• Lower-than-expected costs for the eMPF platform

Hong Kong Operations: Actual vs. Target Performance

Key Financials: 2023-2027 Outlook

Balance Sheet and Cash Flow Highlights

• Cash and short-term investments: S\$622.8m (2024), rising to S\$849.5m (2027F)
• Shareholders’ equity: S\$316.8m (2024), rising to S\$559.4m (2027F)
• Net cash position: Strong, with net cash/equity ratio of -160.0% (2024), improving further through 2027F
• Operating cash flow: S\$671.3m (2024), stabilizing in subsequent years
• Dividend payments expected to grow from S\$17.0m (2024) to S\$40.4m (2027F)

Key Metrics and Growth Rates

• EBITDA margin: 36.9% (2024), stabilizing at ~25% (2025F-2027F)
• Net margin: 17.4% (2024), remaining above 16% through 2027F
• ROE: 23.5% (2024), peaking at 25.4% (2025F), then moderating
• Turnover growth: 49.3% (2024), 39.2% (2025F), 16.9% (2026F), 11.9% (2027F)

Conclusion: iFAST Positioned for Sustained Growth

iFAST Corporation’s second quarter results and outlook underscore its position as a leading fintech wealth management player in Asia. With record-high AUA, accelerating contributions from Hong Kong’s ePension division, and a scalable digital platform, iFAST’s growth prospects remain compelling. The upward revision in target price and earnings forecasts reflect growing confidence in the firm’s ability to deliver on its ambitious targets, making it a stock to watch for investors seeking exposure to the region’s digital wealth transformation.