5 Quick Things Investors Should Learn About iFAST Corporation Ltd

iFAST Corporation Ltd (SGX:AIY) belongs to a group of cool companies in Singapore which share webcasts of their quarterly earnings presentations (the link to iFast’s latest webcast is here).

Folks in Singapore may be familiar with the company’s consumer facing product: But, there’s more to iFAST as its business can be divided into two buckets: the B2C (business-to-consumer) division and the B2B (business-to-business) division.

You can read more about the company here.

Below are five useful (additional) things I learned from listening to iFAST’s fourth quarter earnings webcast:

  1. iFAST’s recurring net revenue’s average contribution to total revenue in the 2011-2014 period was 81.8%. Recurring net revenue comes from the fees associated with the firm’s assets under administration (AUA). On the flipside, non-recurring net revenue comes from advertising, commissions, and so forth.
  2. To provide contrast on revenue and cost, Chief Financial Officer David Leung highlighted that the percentage of revenue which iFAST earns from its AUA was on the uptrend from 2011 to 2014. Meanwhile, the percentage of operating expenses on AUA was on a downtrend. This is a good sign, he said.
  3. Chief Executive Officer Lim Chung Chun also spoke on iFAST’s future plans. One area to drive the company’s growth was to grow its capabilities into that of a “mini private bank.” Historically, iFAST had built its B2B stronghold around the Independent Financial Adviser (IFA) industry. But, the firm needs to expand to other financial products if it wants to manage more assets from high net worth individuals. He cited exchange traded funds, direct bonds, and eventually equities as examples for the future.
  4. Speaking on the B2C side, Lim is targeting a “bondsupermart” – along the same vein as a fundsupermart – which would provide a one-stop location for information and transactional ability on bonds. He talked about his experience as a stockbroker in the past where information on funds was fragmented and limited for the private investor. He felt that fundsupermart was able to help in that situation and is hoping to do the same for bonds with bondsupermart. The level of competition for iFAST in the bond segment is deemed to be low at the moment.
  5. Moving on to iFAST’s plans for China, Lim felt that the country has huge potential. Regulations there are evolving, and he is looking to serve the Chinese clients from its established offices in HK. In light of the high competition in the China market, Lim stressed the importance of building a clear competitive advantage before rolling its strategy out. His expectation of meaningful revenue in China only in 2016 reflects this caution on his part.

Foolish takeaway

To buy and hold a company’s shares for the long term also means keeping up with developments in the firm.

The access to management teams via webcasts gives the Foolish investor a fair chance to judge for themselves whether they’d like to be invested alongside those teams. It also helps us put together a more complete thesis around a company and keep up with developments in its industry.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.