iFAST Corporation Limited’s (SGX: AIY) share price has been on a tear over the past five years. The fintech group saw its shares soar nearly sevenfold from S$1.08 back in late June 2019 to the current S$7.29. In the past year alone, iFAST’s share price has surged by 62% but is still around 27% below its all-time high of S$10 reached in September 2021. Does the group have what it takes to revisit its all-time high and should investors feel optimistic about its business? Let’s find out.

Soaring profits and a sharply higher dividend

The sharp increase in iFAST’s share price can be traced to the group’s improved fundamentals. The fintech has seen both its revenue and net profit increase significantly as it commences its Hong Kong eMPF (mandatory provident fund) contract. Snagged back in January 2021, the initial contributions from this mega-contract only started flowing in during the third quarter of 2023 (3Q 2023) with an initial one-month contribution. Because of this contract, along with the organic growth of its assets under administration (AUA), iFAST saw a sharp improvement...