iFAST, a large Singapore-based investment platform is one of my earliest and largest positions since 2017 so I have been grateful for the recent ~100% jump in the share price. Here are 3 reasons why I haven’t sold any of my shares.
- iFAST operates a large non-bank investment platform in Singapore but the company is still tiny compared to its peers operating in wealth management cities. Consider Hargreaves Lansdown and Charles Schwab. Like iFAST, Hargreaves Lansdown and Charles Schwab operate investment platforms in large financial hubs such as the United Kingdom (Hargeaves Lansdown) and the United States. Net revenue and assets under administration for both companies is 10-20 times larger than iFAST which suggests an exciting future for iFAST. Similarly, the net profit margin for Hargreaves Lansdown and Charles Schwab is much higher than iFAST which points to margin expansion potential for iFAST.
|SGDm||iFAST||Hargreaves Lansdown||Charles Schwab|
|Net revenue (LTM)||72||996||14,122|
|Net profit (LTM)||14||567||4,446|
|Net profit margin||19%||57%||31%|
|Assets under administration (SGD bn)||11||188||5,848|