Hot stock: iFast up as much as 11%, cites Hong Kong e-pension news as possible reason

SHARES of wealth management platform iFast Corp soared as much as 11.1 per cent on Thursday (Aug 18), triggering a query from the Singapore Exchange (SGX) on the unusual price movement.

The counter opened at S$4.36, up just 1.2 per cent or S$0.05. It gained momentum through the morning, and by 9.25 am, was up S$0.20 or 4.6 per cent to S$4.51. As at 11.38 am, iFast soared to S$4.79, up 11.1 per cent or S$0.48, with 736,700 shares changing hands.

iFast’s share price has since cooled slightly, trading at S$4.74 as at 2.24 pm, up S$0.43 or 10 per cent. Some 898,500 shares had been traded with no married deals recorded, according to ShareInvestor data.

At 11.49 am, the SGX queried iFast on the reason for the surge. In response, the company said that it is not aware of any previous undisclosed information that could explain the trading.

However, iFast noted that on Aug 15, the South China Morning Post had published an article on the upcoming e-pension platform of Hong Kong’s Mandatory Provident Fund (MPF), for which the tender was awarded to PCCW Solutions.

As announced last year, iFast had participated in the successful tender as PCCW’s prime subcontractor for a category that includes MPF scheme operation, user delivery and transformation services.

The article “could have triggered some investors to start to focus on the group’s expected strong ramp up in revenue and profitability between 2023 and 2025”, iFast said in its response. The company also flagged that its share price has fallen 48.7 per cent year to date, as at Wednesday’s closing price.

“Some investors have been focusing on the short-term weakness in the group’s profitability and revenue in 2022, despite the guidance provided in its most recent (Q2 and H1) results announcement that revenues and profitability are expected to grow to new highs in 2023 as its Hong Kong ePension division starts to contribute more substantially from Q3 2023 onwards,” iFast said.