iFast Corporation has responded to the query issued by the Singapore Exchange Regulation (SGX RegCo) following the surge in its share price.
At 11.49am on Aug 18, the market regulator issued a query to iFast Corporation, noting its “unusual price movements”.
Shares in iFast surged to $4.785 as at 11.38am on Aug 18, representing a 47.5 cent or an 11.02% increase from its price of $4.31 as at last close.
The company has since responded to SGX RegCo’s queries, referring the market regulator to an article published by Hong Kong’s South China Morning Post (SCMP) on Aug 15.
The SCMP article had provided information on the onboarding of trustees onto the Hong Kong Mandatory Provident Fund’s (MPF) electronic platform.
“This 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,” says iFast in its bourse filing.
See also: China International Holdings triggers SGX query after shares surge over 116% (update)
It adds: “The group notes that its share price has fallen 48.7% year-to-date in 2022 (as at Aug 17). 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 2QFY2022 and 1HFY2022 results”.
In iFast’s results announcement, the company reported that it expects its revenue and profit to grow to “new highs” in 2023 as its Hong Kong ePension division starts to contribute more substantially from 3QFY2023 onwards.
On July 23, iFast reported a net loss of $2.69 million for the 2QFY2022 ended June, owing to a one-off impairment.
As at 4.30pm, shares in iFast are trading 47 cents higher or 10.9% up at $4.78.
