What happened
The share price of iFAST Corporation Limited (SGX: AIY) has shot up by more than 10% in the last two days.
At the time of writing, iFAST is trading at S$9.92, up from just S$8.99 two days ago.
The stock is fast approaching the S$10 mark and is now trading at an all-time high.
So what
At the end of July, the group released a statement announcing that it had finalised the prime subcontractor contract relating to the Hong Kong electronic Mandatory Provident Fund (eMPF) project.
As a recap, iFAST had announced in late January that it had been successful in the tender for this project along with its partner PCCW Limited (SEHK: 0008).
With the signing of the contract, iFAST also informed shareholders that it will have a “very material” financial impact for 2023 and beyond.
Now what
Yesterday, the group released another statement when queried by the exchange on the surge in its share price.
In it, it reiterated that it will provide guidance on the potential growth of its overall Hong Kong business for 2023 and 2024, which will probably include some details of this eMPF project.
This guidance will be released along with its fiscal 2021 third-quarter earnings, which are typically announced around the last week of October.
iFAST has explained that the share price rise could be due to investors anticipating that the growth of the group may be significantly enhanced in the years ahead due to its Hong Kong contract win.
Meanwhile, investors need to wait slightly more than a month to get more clarity on the size of the eMPF contract and how it will contribute to the group’s top and bottom lines.
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Disclaimer: Royston Yang owns shares of iFAST Corporation Limited.
