MENU

5 Positive Things That Investors Should Know About iFAST Corporation Ltd Right Now

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 the other that caters to businesses (B2B).

The company recently announced its 2018 third quarter (3Q2018) earnings update. In this article, let’s look at the positive points to note from the latest quarterly results.

Overview

Source: iFast Results Presentation

The above is a table summarising the key metrics of iFast’s latest quarterly performance. Overall, we can see that all metrics came in stronger on a year-on-year basis. But there are more to the favorable metrics above.

1. To begin with, iFast’s Assets Under Administration (AUA) increased by 18.7% year-on-year to hit a record high of S$8.50 billion, as of 30 September 2018. The increase marked the ninth consecutive quarter of record AUA levels for the company. The growth of AUA was across the board, with Singapore, Hong Kong and Malaysia growing by 14.2%, 27.5% and 26.1%, respectively, on a year-on-year basis.

2. Secondly, the group’s recurring revenue for the first nine months of 2018 was up by 21.4% year-on-year to S$36.4 million.

3. Thirdly, all regions (including China with lower losses) improved their profitability in the latest quarter as compared to the same period last year.

4. Fourthly, operating profit margin for the quarter was 19.0%, up from 17.7% in the same period last year.

5. Last but not the least, iFAST’s balance sheet remained strong with total cash and cash equivalents and other investments at S$55.9 million and around S$10 million in no debt, as of 30 September 2018.

[Editor’s note: this article has been updated to reflect that iFAST had around S$10 million in debt as of 30 September 2018, and not what was previously stated, which was no debt]

Click here now for your FREE subscription to Take Stock Singapore, The Motley Fool’s free investing newsletter. Written by David Kuo, Take Stock Singapore tells you exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead.  

The Motley Fool’s purpose is to help the world invest, better. Like us on Facebook to keep up-to-date with our latest news and articles.

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. Motley Fool has a recommendation for iFast Corporation Ltd.