iFAST Corporation Limited (SGX: AIY) just announced its 2Q 2024 earnings, which turned out better than my expectation.
Revenue surged 72.9% YoY to S$93.75 million, while net profit skyrocketed 346.1% YoY to S$16.03 million. Compared to 1Q 2024, revenue and net profit increased by 9% and 10% respectively.
While the positive impact from HK ePension was anticipated, the core wealth management platform business exceeded expectations, boosting the overall performance. A look at the geographical segment shows a strong performance in both Singapore and Hong Kong segments. Notably, HK 1H profit before tax (PBT) already contributed to more than 60% of its updated guidance.
If iFAST maintains this momentum for the second half, its EPS could reach approximately S$0.200, representing a 120% YoY increase, significantly higher than my February’s estimation of S$0.147.
This translates to a forward PE of 36x which is reasonable given the company’s growth trajectory. With the company guiding for over HK$500 million in PBT for FY2025, its EPS could reach S$0.300 next year.
I reluctantly trimmed some holdings recently as I prioritise overall allocation than individual counters. This approach aligns with the thinking of no single player being more important than the team. I am holding on to my remaining iFAST shares to participate in its growth journey.
Note: iFAST is one of the rare companies that provides exceptionally detailed financial reports and presentations. I highly recommend reviewing these materials if you are interested to invest in the company. (https://www.ifastcorp.com/ifastcorp/investor-relations/factsheets-presentations.tpl)
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