The research house says its &lsquo high&rsquo AUA target will likely require inorganic growth drivers to achieve

 

[SINGAPORE] DBS Group Research hiked iFast&rsquo s : AIY +0.13% target price to S$10.88 from S$10.23, while reiterating its &ldquo buy&rdquo call, on Asia&rsquo s rising wealth as well as the company&rsquo s expanding wealth management platform and product suite.

 

The company&rsquo s ePension division &ndash described as its key growth driver for 2025 and 2026 &ndash was progressing well, said the research house in a report on Monday (Mar 10).

 

IFast&rsquo s core wealth management platform was also steadily advancing with record-high assets under administration (AUA) of S$25 billion, up 26.2 per cent year on year (yoy) as at end-2024, while its net margin continued to improve, said analyst Ling Lee Keng.

 

She noted that iFast set a &ldquo high&rdquo AUA target of S$100 billion by 2028 to 2030, and DBS has assumed conservative long-term growth of 20 per cent.

 

But, achieving the goal will likely require inorganic growth drivers such as mergers and acquisitions, said the analyst.

 

Ling added that iFast Global Bank&rsquo s potential for value creation was &ldquo significant&rdquo .

 

Describing it as a valuation catalyst, the analyst said: &ldquo A fully integrated ecosystem combining iFast and the digital bank offers considerable synergistic benefits, promising faster growth, reduced costs, streamlined operations, expanded reach and enhanced profitability.&rdquo

 

Moreover, the company&rsquo s dominant market share in Singapore of around 60 per cent &ndash up from 50 per cent several years ago &ndash highlights significant barriers to entry, especially when the past decade saw only three competitors, noted the report.

 

IFast Global Bank&rsquo s robust growth potential was demonstrated through two key developments: achieving profitability within three years upon acquisition and improving metrics.

 

Customer deposits surpassed S$1 billion by end-2024, reflecting a 182.6 per cent increase yoy.

 

In Q4 2024, gross revenue grew 163.7 per cent to S$17.2 million, while net revenue climbed 136.4 per cent to S$7.7 million.

 

&ldquo The scalable nature of the digital bank allows iFast to grow its client base without the same level of infrastructure costs associated with traditional banking models, further enhancing profitability, positioning it as a leading digital financial platform,&rdquo said Ling.

Brokers' Take

The company&rsquo s ePension division &ndash described as its key growth driver for 2025 and 2026 &ndash was progressing well, said the research house in a report on Monday (Mar 10).

IFast&rsquo s core wealth management platform was also steadily advancing with record-high assets under administration (AUA) of S$25 billion, up 26.2 per cent year on year (yoy) as at end-2024, while its net margin continued to improve, said analyst Ling Lee Keng.