Further long term downside expected

Revenue and earnings fall drastically. IFS Capital saw 3Q08 revenue
decline 17.2% to S$6.16m and net profit dropped 15.6% to S$2.30m. The
continued effect of the global financial markets is the main cause for the
weaker net profit.

SGX Research believe that IFS Capital will see a weaker FY08 net profit compared to FY07. In their assumptions they expect IFS Capital to achieve net earnings of S$9.4m, a 26.6% YoY drop. SGX Research maintain NEUTRAL rating with a price target of S$0.43.

Outlook remains negative. Global turmoil in financial markets has brought about greater uncertainty, and SGX Research foresee a steady slowdown in its topline translating to weaker earnings in FY08 and FY09. For FY08 they expect revenue of S$26.3m.