Fintech & EM-focused Analyst, KT Capital Group

Alec Tseung

Fintech & EM-focused Analyst

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

Equity Bottom-Up

<ul>
<li>
<a href="https://smartkarma.zoom.us/rec/share/greN_IcTNbNIKfXkLUrkLPlmSXvDzuNh6Oad7iFT39LMx6BL5WsQXTLHfLErBwPT.Xt9FLCjm5WkeCCsj" target="_blank" data-smartkarma-citation="insights:131779" rel="noopener">A recent Smartkarma Corporate Webinar | iFAST: Stellar Performance of Singapore's Global Fintech Player</a> introduced one of the few Fintech players in Asia that has been making profits since 2011.</li>
<li>The successful launch of its HK ePension platform can be highly scalable and is expected to be an important growth driver for the company in 2024 and 2025. </li>
<li>IFast Global Bank is expected to break even in Q4 this year and to be an important growth driver for the group's next 3-year plan (2025 and beyond). </li>
</ul>
<p><em>This Insight is part of the Smartkarma Corporate Webinar series, supported by SGX through the Investor Education Fund.</em></p>



A recent Smartkarma Corporate Webinar | iFAST: Stellar Performance of Singapore's Global Fintech Player introduced one of the few Fintech players in Asia that has been making profits since 2011.
The successful launch of its HK ePension platform can be highly scalable and is expected to be an important growth driver for the company in 2024 and 2025. 
IFast Global Bank is expected to break even in Q4 this year and to be an important growth driver for the group's next 3-year plan (2025 and beyond). 

This Insight is part of the Smartkarma Corporate Webinar series, supported by SGX through the Investor Education Fund.

IFast: A Profitable Fintech Player that Deserves More Investor Attention

Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Thematic (Sector/Industry)

<ul><li>We have a whopper! For more than a year, we have been noting how IBC deals have been getting smaller.</li><li>While there have been four $1 billion-plus deals announced so far in 2023, in terms of size, we have not seen anything like the $27 billion pre-money value for the proposed SPAC IBC merger that was announced at the end of last week by SPAC Black Spade Acquisition Co. (BSAQ) and privately held VinFast Auto, a Vietnamese manufacturer of EVs, since the peak of the SPAC euphoria in 2021.</li><li>In fact, this transaction happens to be the third-largest SPAC merger deal in history behind MSP Recovery (LIFW) in July 2021 (TEV $32.6 billion) and Grab (GRAB) in April 2021 (TEV $31.3 billion).</li></ul>

We have a whopper! For more than a year, we have been noting how IBC deals have been getting smaller.While there have been four $1 billion-plus deals announced so far in 2023, in terms of size, we have not seen anything like the $27 billion pre-money value for the proposed SPAC IBC merger that was announced at the end of last week by SPAC Black Spade Acquisition Co. (BSAQ) and privately held VinFast Auto, a Vietnamese manufacturer of EVs, since the peak of the SPAC euphoria in 2021.In fact, this transaction happens to be the third-largest SPAC merger deal in history behind MSP Recovery (LIFW) in July 2021 (TEV $32.6 billion) and Grab (GRAB) in April 2021 (TEV $31.3 billion).

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

<ul>
<li>The <a href="https://www.smartkarma.com/entities/singapore-exchange-ltd" target="_blank" data-smartkarma-citation="entities:1047:1" rel="noopener">SGX (SGX SP)</a> has launched Single Stock Futures (SSF) on <a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a> and <a href="https://www.smartkarma.com/entities/taiwan-semiconductor-sp-adr" target="_blank" data-smartkarma-citation="entities:8587:1" rel="noopener">Taiwan Semiconductor Sp Adr (TSM US)</a> and both products starting trading on 28 February.</li>
<li>The introduction of SSF on SEA takes on added significance following the inclusion of the ADR in the <a href="https://www.smartkarma.com/entities/msci-singapore-free-index" target="_blank" data-smartkarma-citation="entities:22898:1" rel="noopener">SIMSCI INDEX</a> and the significant weight of the ADR in the index.</li>
<li>We take a look at how market participants can use the Single Stock Futures for exposure to the stock, hedging and portfolio risk management.</li>
</ul>


The SGX (SGX SP) has launched Single Stock Futures (SSF) on Sea Ltd (SE US) and Taiwan Semiconductor Sp Adr (TSM US) and both products starting trading on 28 February.
The introduction of SSF on SEA takes on added significance following the inclusion of the ADR in the SIMSCI INDEX and the significant weight of the ADR in the index.
We take a look at how market participants can use the Single Stock Futures for exposure to the stock, hedging and portfolio risk management.


Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Zero One

Founded in 2015, Zero One produces independent investment research and provides corporate finance advisory services with a focus on both listed and private technology companies. Founder Vincent Fernando has over 20 years of experience in US and Asia capital markets.

Independent Investment Research

Private Capital Markets

<div class="content-highlight"><h2>What You Need to Know</h2></div><ul>
<li>
<strong>Private equity returns have outperformed public equity in the last decade.</strong> From March 2010 to 2020, private equity has generated an average annual return of 13.2% per year as compared to public equity at 6.6%. To put this into perspective, the implied compounded returns of PE over the last 10-year period was 246% versus 89% for public equity. This is partially attributed to the increasing number of unicorn companies - privately held startups reaching a valuation of over US$1 billion - most of which experience their highest growth and return periods in the private market rather than in the IPO stage.</li>
<li>
<strong>COVID-19 has upheaved the business and operating landscape for unicorns.</strong> Lockdown measures, heightened hygiene awareness, and increased travel restrictions are the realities faced by unicorn companies in the new normal, on top of a global recession hampering consumption.</li>
<li>
<strong>Unicorns supercharged by the pandemic: e-Commerce, FinTech, and Remote Work/Study.</strong> Digital platforms have experienced massive adoption as consumers and businesses alike are realizing that they don’t need a physical space in order to interact and transact.</li>
<li>
<strong>Unicorns forced to pivot by the pandemic: Travel &amp; Hospitality, Ride-hailing.</strong> Fear of infection and travel restrictions have hampered the bread-and-butter businesses of many unicorns, forcing them to offer new products &amp; services in the interim. Super-app unicorns (or apps that house a range of sub-apps serving many different functions) have proven more resilient, as they are easily able to switch to other businesses like on-demand delivery and fintech.</li>
</ul><p></p><p><em>Note: This research is commissioned by iSTOX in collaboration with Zero One. iSTOX, a next-generation private capital markets platform, provides accredited investors with access to previously out-of-reach investment opportunities, including exposure to unicorn companies. Click <a href="https://istox.com/" target="_blank" rel="noopener">here</a> to learn more.</em></p>

What You Need to Know

Private equity returns have outperformed public equity in the last decade. From March 2010 to 2020, private equity has generated an average annual return of 13.2% per year as compared to public equity at 6.6%. To put this into perspective, the implied compounded returns of PE over the last 10-year period was 246% versus 89% for public equity. This is partially attributed to the increasing number of unicorn companies - privately held startups reaching a valuation of over US$1 billion - most of which experience their highest growth and return periods in the private market rather than in the IPO stage.

COVID-19 has upheaved the business and operating landscape for unicorns. Lockdown measures, heightened hygiene awareness, and increased travel restrictions are the realities faced by unicorn companies in the new normal, on top of a global recession hampering consumption.

Unicorns supercharged by the pandemic: e-Commerce, FinTech, and Remote Work/Study. Digital platforms have experienced massive adoption as consumers and businesses alike are realizing that they don’t need a physical space in order to interact and transact.

Unicorns forced to pivot by the pandemic: Travel &amp; Hospitality, Ride-hailing. Fear of infection and travel restrictions have hampered the bread-and-butter businesses of many unicorns, forcing them to offer new products &amp; services in the interim. Super-app unicorns (or apps that house a range of sub-apps serving many different functions) have proven more resilient, as they are easily able to switch to other businesses like on-demand delivery and fintech.
Note: This research is commissioned by iSTOX in collaboration with Zero One. iSTOX, a next-generation private capital markets platform, provides accredited investors with access to previously out-of-reach investment opportunities, including exposure to unicorn companies. Click here to learn more.

The Future of Private Market Unicorns in a Post-Pandemic World

<ul><li><strong>Grab has an entrenched leading position in SE Asia.</strong> The ride-hailing turned super-app company is positioned to capture much of SE Asia’s shift towards the digital economy owing to its early-mover advantages in multiple countries in areas such as transportation, food, and payments.</li><li><strong>The digital economy is still in its early stages.</strong> Despite the remarkable growth Grab and its peers have posted, penetration rates remain low across digital services. We estimate that ride hailing penetration in SE Asia was only 6% in 2019, while services like digital remittance are reportedly only at 13% penetration. This indicates a long runway for further growth.</li><li><strong>Main risks include competition and continued reliance on funding.</strong> Grab remains loss-making likely due to its usage of subsidies to gain market share. Increased competition either in the form of other super-apps, specialized players, or traditional firms can force increased subsidies – potentially delaying breakeven and keeping the firm reliant on continued external financing.</li></ul><hr><div class="content-highlight"><p style="text-align: center;"><strong>This Insight was published in conjunction with <a href="https://hg.exchange/" target="_blank" rel="noopener">Hg Exchange</a>, Southeast Asia's First Member-Driven Private Exchange</strong></p></div>

Grab has an entrenched leading position in SE Asia. The ride-hailing turned super-app company is positioned to capture much of SE Asia’s shift towards the digital economy owing to its early-mover advantages in multiple countries in areas such as transportation, food, and payments.The digital economy is still in its early stages. Despite the remarkable growth Grab and its peers have posted, penetration rates remain low across digital services. We estimate that ride hailing penetration in SE Asia was only 6% in 2019, while services like digital remittance are reportedly only at 13% penetration. This indicates a long runway for further growth.Main risks include competition and continued reliance on funding. Grab remains loss-making likely due to its usage of subsidies to gain market share. Increased competition either in the form of other super-apps, specialized players, or traditional firms can force increased subsidies – potentially delaying breakeven and keeping the firm reliant on continued external financing.This Insight was published in conjunction with Hg Exchange, Southeast Asia's First Member-Driven Private Exchange

Grab: Entrenched Super-App Positioned for Next Stage of Growth

Singapore

Grab Holdings Limited operates as a holding company. The Company, through its subsidiaries, develops delivery management, mobility, financial services, and enterprise software solutions. Grab Holdings serves customers worldwide.

Grab Holdings (GRAB US)

IFast: A Profitable Fintech Player that Deserves More Investor Attention

iFast Corporation is one of the few Fintech players in Asia that has been consistently making net profits since as early as 2011. It operates in...

Alec Tseung

SPAC Talk : The Whopper SPAC Merger

We have a whopper! For more than a year, we have been noting how IBC deals have been getting smaller. While there have been four $1 billion-plus...

Water Tower Research

SEA & TSMC ADR Single Stock Futures

The SGX has launched Single Stock Futures on SEA and TSMC ADR and the products started trading on 28 Feb. In this Insight, we take a look at the...

Brian Freitas

The Future of Private Market Unicorns in a Post-Pandemic World

As a result of COVID-19, some unicorn companies have had to re-engineer their business model entirely, while other unicorn companies reap the...

Vincent Fernando, CFA

Grab: Entrenched Super-App Positioned for Next Stage of Growth

Grab has an entrenched leading position in SE Asia. The ride-hailing turned super-app company is positioned to capture much of SE Asia’s shift...

Vincent Fernando, CFA