iFAST share price in explosive return!

Lifetime Membership Christmas comes early for iFAST investors! Within a month, iFAST share price rocketed 22%, surging from $5.60 as of 2 October 2023 to the current $7.00. On 15 January 2023, I wrote that iFAST share price may recover in 2023. On the basis of the current bullish run, it seems that the stock has indeed recovered as iFAST share price increased by 18% year-to-date. But is the counter getting ahead of its fundamentals?

iFAST share price became stuff of legend in Singapore stock market when the counter rocketed from $1.00 in 2020 to an incredible high of $10 in 2021. The meteoric rise of iFAST share price must be surreal for iFAST investors.

For background, iFAST is an online platform company offering investment products to retail investors. At the same time, financial institutions and banks can distribute their investment products through iFAST’s platform. The supersonic boom of iFAST share price in recent years was due to the award of Hong Kong ePension scheme in early 2021.

Nonetheless, the wheels came off the wagon for iFAST share price in 2022 as the series of interest rate hikes by US Federal Reserve and the Russia-Ukraine war combined to knock the wind out of global stock market. iFAST share price was not spared from the market turbulence as the stock plummeted from $8.40 in January 2022 to a dismal low of $3.60 in October 2022.

In 2023, iFAST continued its sluggish form in the early part of the year as the Group’s performance in 1QFY2023 was worse than in 1QFY2022 due to the losses in iFAST Global Bank. Back then, net profit collapsed 52% year-on-year to reach a mere $2.7 million. Despite so, the Group somehow managed to turnaround its performance for 1HFY2023 as net profit surged 119% year-on-year to $6 million. The improving financial performance led to the bullish form of iFAST share price since May 2023.

The latest stellar 3^rd quarter financial result certainly provided reasons for investors to cheer about as net profit continued to surge, rising 308% to hit $8.52 million. However, to claim that the bullish form of iFAST share price is solely attribute to its improving financial performance would be missing the forest for the trees. In my opinion, investors should be buying into the stock as the Hong Kong ePension division made an initial one-month contribution during the quarter.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 poised for game-changer?

Despite the revival of iFAST share price in 2023, trading interest in this counter remains extremely poor. Average 3-month volume amounted to merely 9.42 million. In fact, the Hong Kong ePension division is expected to be the biggest driver for revenue and profits from 4QFY2023 onwards. This means that iFAST share price should [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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