Why iFAST (SGX:AIY) Should Be on Every Growth Investor's Radar

iFAST Corporation (SGX:AIY), a leader in digital wealth management solutions, has quietly emerged as a compelling growth story in Southeast Asia. With a three-year EPS growth rate of 34%, strategic alignment of management incentives, and a valuation gap that hints at untapped potential, this stock deserves attention from investors seeking high-growth opportunities. Here's why it belongs on your radar.

The EPS Growth Engine: 34% and Counting

The company's earnings per share (EPS) have been on a tear, growing at a 34% annualized rate over three years, driven by operational efficiencies and its pivot to digital banking. While the exact figures show a 340% cumulative rise from S$0.05 in 2022 to S$0.22 in 2024, the consistency of this growth is even more striking:
- 2023 EPS: S$0.096 (+92% vs. 2022)
- 2024 EPS: S$0.22 (+130% vs. 2023)

This acceleration is no accident. iFAST's focus on recurring revenue streams—such as its digital wealth management platform—has boosted profit margins to 17.6% in 2024, up from 11% in 2023. .

Insider Ownership: Management's Skin in the Game

iFAST's founders and executives hold a 28% stake in the company, creating a powerful alignment of interests with shareholders. This significant ownership stake ensures that management's decisions prioritize long-term value creation.

Moreover, insiders have demonstrated commitment through consistent dividends and reinvestment. Since 2022, the company has maintained a stable dividend of S$0.015–0.016 per quarter, while the final 2024 dividend rose to S$0.016, signaling confidence in its cash flow. .

Undervalued: Analysts See 20% Upside

At its current price of S$7.65 (as of July 2025), the stock trades at a 27% discount to the average analyst target of S$9.20. This gap is puzzling given the company's strong fundamentals:
- Revenue growth: 49% in 2024, outpacing the Capital Markets industry's 9.8% average.
- Future projections: Analysts expect EPS to grow at 21% annually over the next three years, fueled by its digital banking initiatives and expansion into Southeast Asia.

Strategic Positioning in Digital Wealth Management

iFAST's core strength lies in its digital-first model, which caters to the rising demand for accessible, low-cost wealth management. Its platform offers:
- Automated investment advice tailored to individual risk profiles.
- Real-time market analytics and portfolio rebalancing tools.
- Partnerships with regional banks to distribute its services, unlocking economies of scale.

As traditional wealth managers struggle with high fees and legacy systems, iFAST is capitalizing on the shift to digital—a sector projected to grow at 15% annually in Southeast Asia. .

Risks and Considerations

• Regulatory hurdles: New data privacy laws could increase compliance costs.
• Competition: Incumbent banks may ramp up their digital offerings.
• Valuation sensitivity: A slowdown in revenue growth could pressure the stock.

Investment Thesis

iFAST combines sustainable EPS growth, insider alignment, and sector tailwinds to create a compelling growth story. With a 20% upside to analyst targets and a management team incentivized to deliver, this stock is a rare gem in a market wary of overvalued tech plays.

Actionable Advice:
- Buy: For investors with a 3–5 year horizon, accumulate shares at current levels.
- Hold: If you already own the stock, maintain positions as growth accelerates.
- Avoid: Only if you're risk-averse or prefer dividend stalwarts over growth stocks.

In a world where legacy financial institutions are scrambling to adapt, iFAST's digital moat and execution track record make it a standout pick for growth investors. The question isn't whether it belongs on your radar—it's why you haven't added it yet.