Can anything stop iFAST share price? As a fintech company, the history of iFAST is certainly intriguing. The company started life as fundsupermart.com during the dot.com bubble in 2000. The SARS of 2003 and the Great Financial Crisis in 2008 had almost destroyed the business but somehow the company managed to survive. The current COVID-19 pandemic is actually the third crisis for the fintech company but iFAST share price has been rather buoyant instead.
With a market capitalization of only $350 million, iFAST is considered a small cap in SGX mainboard. But considering the minimum debts it has and the aggressive growth strategies, iFAST share price had managed to punch above its weight in recent years.
Of late, iFAST share price has been in the limelight, presumably because it is one of the nine digital wholesale bank (DWB) applicants to progress to the next stage of assessment by Monetary Authority of Singapore (MAS). Up to three DWB licenses are up for grab. Will digital bank be a game changer for iFAST share price?
Apart from the digital bank adventure, iFAST share price had largely been under the radar for most investors. In fact, the three-month trading volume is a mere of 5.03 million. On the day of the announcement of its digital bank licensing progress, trading volume hit a 52-week high of 2.89 million.
Despite the poor liquidity of this counter, iFAST share price had been bullish since the start of the year. Year-to-date, iFAST share price surged 35% to reach $1.40 (at the point of writing). Since reaching a bottom on 23 March 2020 (like most SGX stocks), iFAST share price had turned bullish. The turning point of iFAST share price coincided with the release of 1st quarter business update. Could this counter be a multi-bagger in the making?
Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested and have never invested in iFAST before. Whether iFAST share price will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form of investment decisions.
iFAST share price at threshold of an era
From surviving the dot-com bust to an aspiring digital banker, iFAST share price is seen to be at the threshold of an era. In my view, this is really a fast growing company. It should be noted that the fintech company got listed in SGX Mainboard only in 2014. Since its listing, iFAST has grown its investment products from 1600 to over 10,000 currently.
The core businesses include the Business-to-Consumer (“B2C”) division, the Business-to-Business (“B2B”) division, and the emerging Fintech Solutions/Business-to-Business-to Consumer (“B2B2C”) model. Looking back, it was the secure of the SGX trading license in June 2017 that saved iFAST share price, which had bottomed to $0.67 in April 2017 from $1.50 in October 2015.
It is clear that the game-changer for iFAST was the launch of the SGX trading capabilities in July 2017. This capability allows iFAST to thrive in times of market volatility because of the commission fees to be gained from the buying and selling of stocks. For example in 2020, despite the devastating effects of COVID-19 for most global businesses, iFAST bucked the trend to achieve a record quarterly net profit of $3.64 million in 1Q2020. This is an increase of a stunning 126.8% compared to 1Q2019. Net revenue also increased 25.3% year-on-year.
The stellar first quarter result is impressive given the challenging operating environment caused by COVID-19. The only thing that took some shine off the sparkling result was the [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]
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