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Aspial Shines Bright like a Diamond

aspial logo Owner of Lee Hwa Jewellery, among other businesses, Aspial Corporation Limited (SGX: A30), registered a 99% surge in profits to $49.8 million for first half-year of 2013 (1H 2013) over 1H 2012, thanks to stellar performance from its Property division. The increase was mainly due to “progress recognition of sales from East Village, Cardiff Residence and 8 Bassein. The recently-launched Urban Vista has made its maiden revenue contribution in 2Q 2013.

The revenue for the same period was up 27% to hit a record of $255.0 million.

On top of the Property division doing well, the Jewellery and Financial Service businesses also had recorded higher revenue in 1H 2013. The Jewellery division achieved higher revenue “despite the lesser number of stores in 1H 2013 as compared to 1H 2012.” The Financial Service business was did well due to “higher interest income from its larger pledge book and higher revenue from the sales of unredeemed pledges and the retail and trading of pre-owned jewellery and watches business.

As of 30 June 2013, the total debt stands at $672.0 million. The debt-to-equity ratio stands at 2.57. The ending cash balance was at $69.7 million versus that of $38.6 million in 1H 2012.

The net cash used in operating activities for 1H 2013 was $59.4 million compared to net cash generating from operating activities of $52.1 million for 1H 2012. There was an increase in development properties mainly due to the acquisitions of land for development. The increase in trade and other receivables in 1H 2013 was because of the larger pledge book for the financial service business.

The company commented on its business outlook, saying, “According to Government’s projection, the Singapore economy is expected to grow at a modest rate of 2.5% to 3.5% in 2013. Nevertheless, the Group is cautiously optimistic that its second half year will continue to perform relatively well, benefiting from contributions from the on-going property projects and continued improvements in the jewellery and financial service businesses.”

The company has declared an interim dividend of 1.5 Singapore cents per share. This is a 100% increase from 1H 2012 where 0.75 Singapore cents per share was declared. The shares opened up 4.9% at $0.43 on 14th August 2013, a day after results announcement.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.  Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.