All five Evergreen stocks (iFAST, Kingsmen, SOG, China Aviation Oil and HRNet) reported poor results for the first quarter of 2019 but I’m sticking with them. These companies have a history of producing great results and I’m giving them 2-3 years more before I consider selling.
iFAST
Revenue and net profit declined because of “a decrease in front-end commission income resulting from a significant drop in customers’ investment subscription in unit trusts”. This was one of the key risks mentioned in my thesis. iFAST is one of the lowest cost investment platforms in Singapore and Asia and should benefit from network effects and the tailwinds of a rising Asian middle class. I’m confident that results will improve in the next few quarters. iFAST has a 2.9% dividend yield and has the highest valuations within my portfolio but I think it’s worth paying up for the company’s growing moat.
Kingsmen
Revenue increased
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