Hi, I would like to know what I should take note when analyzing iFAST? It is a FinTech Company and I am fairly new to this area. Would be glad to know what are the points I should take note.
Just to sum up for my questions:
- what to take note when investing in iFAST?
- For AUA and AUM is there any comments after reading? I supposed iFAST profit through the commission fees and platform fees for what they provide … ?
- Lastly,valuations method for iFAST? I think PE is one that I will be using.What are your thoughts/input for avg PE for FinTech industry?
Hi Qi Jie,
Let me input some of my pointers below:
- Virtual banking license in HK, China’s venture and new broking licenses in other markets. If they can crack the first two, iFast should be able to grow really fast. For now, it is still early stage…
- iFast’s revenue is mainly derived from AUA which made up the bulk of the recurring income (80%). Increasingly, they should have more non recurring income, i.e. transaction fees from their brokerage arm as this is relatively a new segment for iFast.
- Yep, PE is good but you may need to exclude the losses from their China segment.
May I cfm that iFAST AUA recurring revenue is through the trailer fee, platforms fee and wrap fee?
You’re very close to the answer. Wrap fees are non-recurring and the other two are recurring.
For the CAPEX of iFast, instead of the normal purchase of equipment and plants, do I also include the purchase of intangible assets which is below the purchase of equipment and plants?
I am referring to 2017 annual report. I feel that is good to add them in as I think intangible assets are those license that they acquire for their business to operate.
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