iFast Corporation Limited Q2 Results



Was interested in iFast when it IPO last year because I am using platform and I think it is a good one. Let take a look at how well it has perform for this quarter.

Highlights:

  • For Q2 the revenue for iFast was up by 21.9% on a year-on-year comparison, coming in at $23.2 million.
  • After netting off commissions and fees, iFast reported net revenue of $11.4 million for the second quarter of 2015, a 26% increase from the same quarter a year ago. Of this amount, $9.4 million (or 82%) was recurring in nature.
  • Profit for the period was up 24.6% year-on-year to $3.2 million.
  • Earnings per share (EPS) was down 3% compared to the same quarter last year. iFast recorded 1.26 cents in EPS in the reporting quarter due to a higher share count.
  • Cash flow from operations for the reporting quarter was $3.1 million with capital expenditures clocking in at just $313,000. The low capex gave iFast a positive free cash flow of $2.8 million. For perspective, the selfsame figures a year ago were $1.6 million, $252,000, and $1.35 million, respectively.
  • As of 30 June 2015, iFast’s assets under administration (AUA) was S$5.7 billion, up 14.7% year-on-year. This is an important figure for investors to track given that iFast had mentioned in its IPO prospectus that “the size of our AUA is a good indicator of our net revenue.”
  • As of 30 June 2015, the company had $24.6 million in cash and equivalents and no debt; that’s a strong balance sheet.
With such a result, iFast has done pretty well since it IPO. On top of that they have also proposed an interim dividend of $0.0068.

Apart from earning results, there's news that Singapore subsidiary had received approval to distribute bonds and ETFs. As for their Hong Kong subsidiary has agreement to acquire a stockbroker firm. All these efforts seems to ensure that they forge a path to continuous growth.  

Summary

Trading at $1.48 with 36 times trailing its earnings at the moment, I feel it is the right time to enter but one can foresee more to come from this company.



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