Investment Thesis:

Creating a seamless global Fintech ecosystem to accelerate growth. Seamless access and connectivity to global products and global exchanges will be the trend going forward. There are not many players currently with a full suite of services. Having a digital bank located in a trusted jurisdiction is a key
missing link in iFAST’s current Fintech ecosystem, which can further accelerate the growth of its overall wealth management platform.

Longer term earnings momentum remains strong. Though some initial start-up losses are expected in 2022 and 2023 from this proposed UK bank acquisition, we maintain our positive view on iFAST on the back of the strong growth momentum ahead, propelled by the Hong Kong business from 2024 onwards. We expect more room for Assets Under Administration (AUA) growth. iFAST is well poised to capture
more market share in its key market Singapore, where its share is just 10% of the c.S$128bn in Assets Under Management of the collective investment schemes.

Valuation:

Maintain BUY with a lower TP of S$11.37, after accounting for integration costs and start-up losses for the
incorporation of the digital bank. Our TP is based on the Discounted Cashflow (DCF) valuation method to capture growth in its steadily growing cashflows.

Where we differ:

We are more optimistic on iFAST given its scalable business model and drive towards digitalisation to propel the group to greater heights.

Key Risks to Our View:

Its operations are vulnerable to changes in laws and regulations as well as market sentiment.