The headline on Business Time is “iFast Q4 net profit surges 917% to S$13.2 million”.
That sounds more sensational than mine but if you have been following iFAST, you would know that last year was tough, so there is no need to get too excited by the 917% profit surge.
Do not get me wrong, I am very pleased with the results but for slightly different reasons.
- Once again, the group has bounced back from a tough year. From FY2019 to FY2023, total revenue and EPS have compounded at a rate of 19% and 28% respectively.
- They achieved their 2023 HK target for revenue and net revenue, but exceeds substantially for its PBT target.
- iFAST Global Bank is making good progress, with expected smaller loss in FY2024 and the group aims to breakeven by 4Q2024.
The group has lowered their Hong Kong targets for gross and net revenue due to the tough financial market conditions in Hong Kong but has maintained the target for PBT. Seeing how they have beat the PBT target this year, I do think they can achieve the them, provided the conditions do not worsen.
Buy? Sell? Hold?
I am definitely holding on to my shares, given the visibility of their strong growth for the next two years. Not adding more though as it is already my top holding and taking up near to 10% of portfolio.
The following is my estimation of their EPS for FY2024 and FY2025.
I am excited to see the group doing even better than what I have estimated. I do not know how the market will value the company’s growth, but if the company continues to report good tidings, they are worth more than $10.
To me that is.
Referral
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Trust Bank (code: 1X9DDP1V, additional $10 Fairprice voucher)
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