iFast eyeing revenue, earnings growth this year, higher dividend payouts from 2024: CEO


SINGAPORE – Wealth management platform iFast Corporation aims to shrug off a dismal performance in 2022 with a period of “high growth” in revenue and profitability in 2023 through 2025, chief executive Lim Chung Chun said.

In a call on Wednesday to discuss the company’s latest financial results, Mr Lim said that although net profit fell substantially this financial year compared with last year, the group’s final dividend payout to shareholders was kept constant at a proposed 1.4 cents per share.

In 2022, iFast faced a situation where revenue stagnated at some point in the year and costs increased, which impacted profitability.

Although profitability will improve in 2023, Mr Lim said iFast will not “rush to raise (its) dividends”, and the bulk of the year’s dividend payouts will be “similar to last year”.

However, shareholders can expect “further growth” in dividends from 2024, he said.

On Tuesday, iFast posted an 82 per cent fall in net profit to $1.3 million for its fourth quarter ended December. Revenue for the quarter was down just 13 per cent to $47.4 million.

The drag on earnings came from an estimated impairment allowance of $5.2 million on the back of business restructuring in iFast India, preparations for its ePension division in Hong Kong, as well as other “important strategic investments” the group had made over the year that clashed with tough global financial market conditions.

iFast is expecting the China market to “continue to remain tough” in the short term, but Mr Lim said the group will try to “contain” its losses by managing costs.

Meanwhile, iFast is expecting its ePension business in Hong Kong to begin contributing to its financials in “a significant way” in the later part of 2023. In 2024, iFast will book a full-year contribution from this business, Mr Lim said.

“We are looking at the (Hong Kong) ePension division to be an important driver of growth in the next three years,” he added. But the growth of this division will taper off after 2025.

iFast’s other business segments – such as stocks, bonds, unit trusts and portfolio management services – are pegged to short-term market conditions.

But the ePension division will not be subject to market volatility because it is a “service fee”, Mr Lim said. The group therefore has a “comfortable knowledge” of the revenue this segment will bring in 2023.

iFast is maintaining its guidance for the Hong Kong business that was issued in April 2022.

The group is aiming to hit gross revenue of more than HK$400 million (S$68 million) in 2023 and profit before tax of more than HK$100 million.

In 2025, gross revenue is expected to exceed HK$1.6 billion and profit before tax is expected to surpass HK$500 million.


Source link

Denial of responsibility! galaxyconcerns is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave A Reply

Your email address will not be published.