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DBS Vickers: Buy iFast For Long-term Dividend Payouts
Aspire, Hot Picks | 29 May 2015
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By: Raymond Leung
Articles (142) Profile

Analysts' updates on iFast Corporation Ltd as at 28/05/2015

Since iFast announced its Initial Public Offering (IPO) last year December, it has been receiving little attention. However, recent positive developments have aroused the interest of various research houses, most of which are bullish sentiments.

Source: Income Statement for iFast, Bloomberg

Leader In Digital Finance

iFast provides investors a direct proxy into the wealth management industry as they bypass traditional financial institutions such as banks. Fundsupermart is the consumer arm of the group which sells unit trusts to investors directly online and a leader in the industry.

At the same time, iFast has a business-to-business (B2B) arm that deals directly with financial advisory firms by providing for their back-end transactional and operational needs.

iFast has a strong presence in Singapore, Malaysia and Hong Kong and is the leader in its key markets. March 2015, the group has a total amount of $5.75 billion asset under administration with an average growth rate of 24.3 percent for the last ten years.

Bonds & ETFs

iFast has launched a new platform for investors to invest in bonds called Bondsupermart. The new platform offers retail investors convenience in bonds investment that were traditionally distributed to institutional and high networth investors.

Through its iFast platform, the group will distribute the 87 ETFs that are listed on the SGX for B2B transactions. However, it will not be offering Exchange-traded Funds (ETFs) to retail investors through Fundsupermart at the moment.

Online Discretionary Portfolio Management System

iFast is waiting for approval to launch its online Discretionary Portfolio Management System (DPMS) expected to begin in Hong Kong. It will allow retail investors to rebalance their portfolio through the automated asset allocation system.

For the B2B channel, the system will assist financial advisors in improving their investment strategies and reduce their administrative burden.

A Dividend Stock?

Analysts from DBS Research initiated their research based on dividend discount model. This is essentially because iFast is a cash-led business and has a relatively high dividend payout that is estimated at 60 percent.

They hold a long-term bullish view towards the group with a potential price target of $1.60 primarily based on the strong growth rate.

Trained in fund management, Raymond is familiar with shares and various investment vehicles.

Please click here for more information about this author.

iFAST Corp  1.030 -0.010 -0.96%   
Business: Internet-based investment products distribution platform. [FY18 Geographical] Singapore (65.9%), Hong Kong (23.9%), Malaysia (8.9%), China (1.3%).

Insight: Apr-19, 1Q19, Co's assets under administration gre... Read More


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