Broker: CGS International
Date of Report: July 28, 2026
Excerpt from CGS International report.
Report Summary
Stock: iFAST Corporation Ltd (IFAST SP)
Call to Action: Add (Buy)
Target Price: S$13.00
Current Price: S$9.03
Upside Potential: 44.0%
Key Highlights:
- 2Q26 net profit of S\$29.8m (+35% yoy) was in line with expectations; 1H26 net profit reached 44% of full-year estimates.
- EPS forecasts trimmed for FY26F/27F/28F by 2.7%/2.2%/1.9% due to delayed rollout of the Hong Kong ORSO ePension scheme and higher staff costs.
- Positive drivers: Strong 10.7% qoq growth in assets under administration (AUA) to S\$36.1bn is expected to offset delays in new business contribution.
- Dividend Guidance: FY26F DPS raised from 10.5 Scts to 12.0 Scts (payout ratio c.28.9%), with management aiming for a 40% payout longer term.
- Operating leverage: High scalability and recurring income from AUA growth supports a robust EPS CAGR of c.21.2% for FY25-28F.
- Risks: Slower AUA growth, reduced revenues from Hong Kong eMPF from FY27F, and potential losses in UK banking operations.
- Valuation: SOP-based target price of S\$13.00, implying a FY27F P/E of 25.0x. Re-rating potential driven by dividend enhancements and cost rationalisation.
Summary for Investors: iFAST Corporation Ltd remains a high-conviction Add (Buy) with a target price of S$13.00, reflecting the company’s strong recurring income growth, rising dividend payout, and high operating leverage from its expanding AUA base. Investors should focus on iFAST for its robust earnings outlook and capital return potential despite near-term project delays.
Above is an excerpt from a report by CGS International. Clients of CGS International can access the full research report from the broker’s website.
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