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RHB initiates iFast Corp at 'buy' with $12.20 target price

The Edge Singapore
The Edge Singapore • 2 min read
RHB initiates iFast Corp at 'buy' with $12.20 target price
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Syahril Hanafiah of RHB Bank Singapore has initiated coverage of iFast Corp with a "buy" call and $12.20 target price, with a view that this company is a key beneficiary of the growing Asia-Pacific wealth management market.

"Earnings growth is braced by the scaling up of iFast Global Bank (iGB), stable recurring income from the ePension division, and its well-established wealth management platform business," says Hanafiah.

Citing Mordor Intelligence, Apac's wealth management market, valued at US$27.6 trillion in assets under management in 2025, is seen to grow to US$41.8 trillion by 2031.

iFast, on its part, may see its asset under administration grow at a CAGR of 22% over the coming three years.

"Considering iFast’s asset-light model, we believe group’s PBT margins will further expand as business scales up, which we estimate at between 39-42% over the forecast horizon," says Hanafiah.

There is another growth angle: iFast's UK-based digital banking arm, which is enjoying a jump in deposits - a trend likely to continue.

See also: DBS Group Research maintains ‘buy’ on Elite UK REIT following the latest independent valuation appraisal

"This deposit base expansion is translating into higher net revenue, thanks to the group’s strategy to redeploy deposits into short-duration sovereign bonds and investment-grade corporate bonds," says Hanafiah.

The company's ePension business in Hong Kong is seen to generate slightly better profit before tax margins of between 43 to 45% over FY2026 to FY2028.

With better operating leverage, iFast is seen to grow its net core earnings at a CAGR of 19% over the FY2026 to FY2028 period.

See also: Chao of Tickrs Financial downgrades Nanofilm Technologies to 'hold'; earnings recovery story intact

Key risks include earnings dependence on AUA, regulatory risks, and exposure to FX currencies.

iFast shares, as at 9.54 am, is down 1.95% to $9.04.

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