Analysts Upgrade iFAST Corporation Ltd. (SGX:AIY) Estimates: A Closer Look

In a significant development, analysts have recently upgraded their estimates for iFAST Corporation Ltd. (SGX:AIY), reflecting the company's strong performance and growth prospects. This article delves into the key factors driving these upgrades and explores the implications for investors.

Record High AUA and Earnings

iFAST Corporation reported record high Assets Under Administration (AUA) of SGD25.01 billion, a 26.2% increase year-over-year (YoY). This impressive growth was primarily driven by SGD3.30 billion in net inflows, up 63.2% YoY. The company's earnings also surged, with net profit increasing 135.7% YoY to SGD66.6 million. These robust financial results demonstrate iFAST's success in attracting and retaining clients, which is a critical aspect of its long-term growth strategy.

iFAST Global Bank's Profitability

iFAST Global Bank achieved profitability in the fourth quarter of 2024, reporting a net profit of SGD0.3 million. This turnaround was driven by an 182.6% YoY surge in customer deposits to SGD1.01 billion, increased foreign exchange conversion activity, and higher usage of remittance services. The bank's gross revenue increased 163.7% YoY to SGD17.22 million. This significant improvement in iFAST Global Bank's performance aligns with the company's strategy to enhance digital banking services and achieve full-year profitability in 2025.

Hong Kong Business Exceeding Projections

iFAST's Hong Kong business significantly exceeded FY24 projections, achieving HKD866 million in gross revenue (8.3% above guidance) and HKD309 million in profit before tax (23.6% above projections). The company expects continued growth in the Hong Kong ePension division, driven by ongoing onboarding and the launch of the ORSO business. This strong performance in the Hong Kong market underscores iFAST's ability to execute its growth strategy in key markets.

Three-Year Plan (2025-2027)

iFAST has outlined a three-year plan that includes targets to reach SGD100 billion in AUA by 2028-2030, leveraging a scalable wealth management platform and profitable global digital bank. The plan also aims to achieve full-year profitability for iFAST Global Bank in 2025 and successfully deliver ePension services. These ambitious targets align with the company's long-term growth strategy and have likely contributed to analysts' upgraded estimates.

Upgraded Earnings and Revenue Growth Projections

Analysts have raised their earnings estimates for iFAST Corporation by approximately 10% for both FY25F and FY26F. This upward revision reflects the company's strong performance and growth potential. The analysts assume a higher AUA growth assumption of 20% per annum for both years, compared to the previous assumption of 15%. This upward revision accounts for the expansion of products and services offered on the platform and the higher contribution from iFAST Global Bank.

In conclusion, the upgraded earnings and revenue growth projections for iFAST Corporation Ltd. (SGX:AIY) reflect the company's strong performance and growth potential. The company's record high AUA and earnings, iFAST Global Bank's profitability, Hong Kong business exceeding projections, and ambitious three-year plan have all contributed to analysts' positive outlook. Investors should closely monitor iFAST's progress and consider the risks and challenges the company faces in achieving these upgraded estimates. By doing so, investors can better position themselves to capitalize on iFAST's growth prospects.