My humble analysis on ifast
My analysis is:
Market cap of UOB (38bil) + DBS (52bil) + OCBC (44bil) combined is SGD134bil.
Retail banking revenue makes up 30% to 40% of their total revenue.
iFast is trying to be the Amazon of wealth management in Asia, their products are similar to wealth management platform. Except that their fees are lower, minimal advisory given to their clients and no loan granted.
iFast has a business model that is the dream of wealth management. That is earning revenue without calling clients. iFast charges a platform fee for their clients, hence this provides recurring income for the company. So even if their clients do not trade, they are still earning income.
iFast pricing:
https://secure.fundsupermart.com/fsm/new-to-fsm/pricing-structure
Asset under management (AUM) of iFast has been rising. This means that their recurring income will rise.
Say iFast manages to capture 1% of market share, they deserve to have a market cap of SGD134bil x 30% x 1% = SGD402mil.
Market cap of iFast is only SGD202.7mil hence that provides margin of safety. This provides a potential upside of 98%.
This stock pays 3.60% dividend and massive insiders' buying.
Using Amazon as an example, currently they manage to capture 5% of retail market share in US.
If iFast manages to capture 5% of wealth management market share, then they deserve a market cap of SGD2,010mil.
That will provide upside potential of 891%. This is not a realistic potential return in the near term. But over 8 years period, who knows!
Many fintechs are small, loss making and in need of funding. iFast is a huge fintech that is profitable, no funding needed, and is a game changer!
This is a company that is a potential acquisition target as it is snatching market shares from banks. The best way to get rid of a competitor is to acquire it.
Disclaimer:
This is not a recommendation.
Market cap of UOB (38bil) + DBS (52bil) + OCBC (44bil) combined is SGD134bil.
Retail banking revenue makes up 30% to 40% of their total revenue.
iFast is trying to be the Amazon of wealth management in Asia, their products are similar to wealth management platform. Except that their fees are lower, minimal advisory given to their clients and no loan granted.
iFast has a business model that is the dream of wealth management. That is earning revenue without calling clients. iFast charges a platform fee for their clients, hence this provides recurring income for the company. So even if their clients do not trade, they are still earning income.
iFast pricing:
https://secure.fundsupermart.com/fsm/new-to-fsm/pricing-structure
Asset under management (AUM) of iFast has been rising. This means that their recurring income will rise.
Say iFast manages to capture 1% of market share, they deserve to have a market cap of SGD134bil x 30% x 1% = SGD402mil.
Market cap of iFast is only SGD202.7mil hence that provides margin of safety. This provides a potential upside of 98%.
This stock pays 3.60% dividend and massive insiders' buying.
Using Amazon as an example, currently they manage to capture 5% of retail market share in US.
If iFast manages to capture 5% of wealth management market share, then they deserve a market cap of SGD2,010mil.
That will provide upside potential of 891%. This is not a realistic potential return in the near term. But over 8 years period, who knows!
Many fintechs are small, loss making and in need of funding. iFast is a huge fintech that is profitable, no funding needed, and is a game changer!
This is a company that is a potential acquisition target as it is snatching market shares from banks. The best way to get rid of a competitor is to acquire it.
Disclaimer:
This is not a recommendation.
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