iFAST Corporation Ltd’s Latest Earnings Report: Starting 2017 On A High Note
iFAST Corporation Ltd (SGX: AIY) reported its 2017 first quarter earnings last Friday morning. The reporting period was for 1 January 2017 to 31 March 2017.
As a quick background, iFAST Corporation is an internet based investment products distribution platform provider which got listed in late 2014. Folks in Singapore may be familiar with its consumer facing product, fundsupermart.com. The business of iFAST Corporation can be divided into two buckets: the B2C (business-to-consumer) division and the B2B (business-to-business) division.
The following’s a rundown on some of the latest financial figures for iFAST Corporation:
1. For the first quarter of 2017, iFAST Corporation’s revenue rose 18.3% year-on-year to $22.1 million.
2. On a net revenue basis (net of commissions and fees), iFAST Corporation reported $11.2 million for the first quarter of 2017, a 19.4% increase from the same quarter in 2016.
3. For the reporting quarter, profit spiked 60.7% to $1.25 million.
4. Earnings per share (EPS) for the quarter also increased 61.7% from 0.47 cents in the first quarter of 2016 to 0.76 cents in the reporting quarter.
5. iFAST Corporation recorded cash flow from operations of $2.8 million for the reporting quarter. Capital expenditure was $245,000 for the same period. The lower capital expenditure gave iFAST Corporation positive free cash flow of $2.6 million for the first quarter of 2017.
6. As of 31 March 2017, the company’s assets under administration (AUA) was S$6.46 billion.
7. iFAST Corporation ended the reporting quarter with $26.5 million in cash and equivalents and $22,000 in debt. This is a slight increase from the $22.5 million in cash and equivalents and $23,000 in debt recorded at the end of 2016.
iFAST Corporation kicked off 2017 with a big increase in revenue and profit. The company also maintained a strong balance sheet and recorded positive free cash flow for the reporting quarter.
The board of directors proposed an interim dividend of 0.68 cents per share, which is unchanged from the previous year.
Operational highlights and what lies ahead
At the country level, Singapore’s net revenue rose 18.8% to $8.03 million in the first quarter. Elsewhere, Hong Kong and Malaysia recorded net revenue increases of 14.7% and 36.7% respectively. The former posted $2.4 million in revenue while the latter delivered $0.7 million in sales.
iFAST Corporation also provided an outlook in its earnings release:
“Following a difficult 2016, 1Q17 has started off on an encouraging note. As at 31 March 2017, Group AUA increased to a record of $6.46 billion, and the AUAs in each of the markets, namely Singapore, Hong Kong and Malaysia reached record levels too.
Group net profit (including China) rebounded 60.7% in 1Q2017, though it has not reached optimal levels as China is in the initial stages of the business, and is making start-up losses. Group net profit (excluding China) grew 41.1% to $2.95 million on the back of the record AUA levels.
In the last 2 years, we have been busy broadening the range of our products and services as an investment platform as we believe that we need to position ourselves well for the potential growth opportunities and changes in the wealth management industry in Asia. We believe that the full benefit from our efforts to broaden our products and services will be realised in the coming years.
Barring a significant deterioration of the current financial market conditions, we expect improvements in the Group’s business in 2017.”
The market liked what it saw as iFAST Corporation’s stock price jumped by 18.3% to $0.71 on Friday after its results were announced. At yesterday’s closing price of $0.76, iFAST Corporation has a trailing price-to-earnings ratio of 38.