iFAST Corporation Ltd (SGX: AIY) is an Internet-based investment products distribution platform 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 one that caters to financial advisors (B2B).
In late March, the company published its annual report for the year ending 31 December 2017. Given that reading an annual report is one of the best ways to keep up with a company’s developments, I decided to go through iFAST’s latest annual report to understand the company’s prospects, and how it had performed in 2017.
Generally, when reading an annual report, I will pay close attention to the letter to shareholders that the company’s chairman and/or CEO writes. In this article, I will discuss an area that I found interesting: Management’s thoughts on the outlook of the company’s business.
To begin with, iFAST’s management thinks that the company is well positioned for more growth in the future. See below:
“Going forward, we believe that the Group’s efforts of the last two to three years in broadening the range of products and services have positioned us well for further growth.”
Management went on explaining why it thinks that iFAST can continue to grow:
“The Group now runs a comprehensive wealth management platform that will help bring the Group’s AUA and overall business volume to the next level in the years ahead.
The Group’s AUA has been growing, increasing 24.3% YoY to a record $7.58 billion at the end of 2017. We believe that in the medium to long term, the Group still has a lot of room for growth as the current AUA is still a small amount relative to the size of the wealth management industry in Singapore and Asia.”
In short, iFAST’s leaders think that its comprehensive platform, strong track record, and small market share will allow it to grow materially in the future. Geographically speaking, iFAST expects its Singapore, Hong Kong, and Malaysia businesses to continue to grow in 2018. On the other hand, the China business is expected to post a loss in 2018 that is comparable to what it delivered in 2017.
iFAST’s management also shared projections about the company’s dividend:
“We expect the Group’s dividend per share in 2018 to be higher than in 2017.
In summary, barring a major deterioration in the global financial markets, iFAST does expect its business to grow in 2018.
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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.