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5 Positive Points Investors Should Know About iFAST Corporation Ltd’s Latest Quarterly Earnings

iFAST Corporation Ltd (SGX: AIY) is an internet-based investment products distribution platform provider that has a presence in Singapore, Hong Kong, Malaysia, China, and India. It has two main business divisions, one that caters to consumers (B2C) and another that caters to businesses (B2B).

In late October, iFAST released its 2017 third quarter earnings. There are a number of positive takeaways for investors.

Here’s iFAST’s income statement for the reporting quarter:


Source: iFAST 2017 third quarter earnings presentation

The first positive point is that iFAST delivered growth in many areas. Revenue was 24.9% higher, net revenue increased by 21.9%, profit before tax jumped by 36.2%, and profit attributable to shareholders was up 21.5%.

Secondly, iFast’s assets under administration (AUA) increased by 19.3% year-on-year to hit a record high of S$7.16 billion as of 30 September 2017. The increase marked the fifth consecutive quarter of record AUA levels for the company. Growth in AUA was across the board, with the AUAs in Singapore, Hong Kong, and Malaysia up by 14.3%, 25.4%, and 46.4%, respectively, on a year-on-year basis.

Thirdly, iFAST’s recurring revenue for the reporting quarter grew 16.4% from a year ago to reach S$10.63 million.

Fourthly, iFAST’s balance sheet remained strong. As of 30 September 2017, the company had total cash and cash equivalents, and other investments of S$49.23 million, while total debt was zero.

Lastly, the company proposed an interim dividend of 0.75 cents per share for the reporting quarter, up 10% from 0.68 cents last year.

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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 Lawrence Nga doesn’t own shares in any companies mentioned. The Motley Fool Singapore has a recommendation for iFAST Corporation.