Aspial has been growing its portfolio of business in mainly 3 areas,
1) Property development
2) Jewellery
3) Pawn Broking Business
As of 30th June 2016, Aspial has booked in S$1.5 billion in sales for its local & Australia property project.
S$1.1 billion of revenue in Australia property to be recognize over 2018 - 2020.
S$485 million of revenue in Singapore property projects to be recongise from 2HFY2016 onwards.
My Analysis:
1) Using its 5 year average net profit margin of 11%, Aspial is expected to earn about $165 million from now till 2020.
2) Aspial has issued listed bonds which expires on 2020. This is also in-line with the end of recognise of its Australia property projects. From my understanding of Australia's property framework, revenue can only be recognise after TOP & handing over the keys to owners. It is unlike Singapore, where revenue is recognised progressively as the project is being built. The deposit of the purchase of property is placed in custody with a Law Firm in Australia. I would believe there is some credibility in the figures given.
3) Aspial is replenishing its land bank overseas. It will focus on Penang & Brisbane properties in coming years.
4) Aspial has been able to create value for its shareholders. The share price has rose from 2cts in 2002 to 26cts currently. Thats a 1200% returns in 14 years or 85% on a yearly basis since listing. I believe the board of management is on the right track to bring the company to greater heights.
1) Property development
2) Jewellery
3) Pawn Broking Business
As of 30th June 2016, Aspial has booked in S$1.5 billion in sales for its local & Australia property project.
S$1.1 billion of revenue in Australia property to be recognize over 2018 - 2020.
S$485 million of revenue in Singapore property projects to be recongise from 2HFY2016 onwards.
My Analysis:
1) Using its 5 year average net profit margin of 11%, Aspial is expected to earn about $165 million from now till 2020.
2) Aspial has issued listed bonds which expires on 2020. This is also in-line with the end of recognise of its Australia property projects. From my understanding of Australia's property framework, revenue can only be recognise after TOP & handing over the keys to owners. It is unlike Singapore, where revenue is recognised progressively as the project is being built. The deposit of the purchase of property is placed in custody with a Law Firm in Australia. I would believe there is some credibility in the figures given.
3) Aspial is replenishing its land bank overseas. It will focus on Penang & Brisbane properties in coming years.
4) Aspial has been able to create value for its shareholders. The share price has rose from 2cts in 2002 to 26cts currently. Thats a 1200% returns in 14 years or 85% on a yearly basis since listing. I believe the board of management is on the right track to bring the company to greater heights.
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