SGX:A30

Stock Analysis Report

Executive Summary

Aspial Corporation Limited, an investment holding company, operates in the real estate, financial service, and jewelry businesses in Singapore, Australia, Hong Kong, and Germany.

Rewards

Trading at 97.7% below its fair value

Risk Analysis

Earnings have declined by -3.32% per year over past 5 years

Interest payments are not well covered by earnings

Unstable dividend track record



Snowflake Analysis

Mediocre balance sheet second-rate dividend payer.

Share Price & News

How has Aspial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: A30 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

A30

0.9%

SG Real Estate

0.9%

SG Market


1 Year Return

-26.8%

A30

1.1%

SG Real Estate

2.1%

SG Market

Return vs Industry: A30 underperformed the SG Real Estate industry which returned 1.1% over the past year.

Return vs Market: A30 underperformed the SG Market which returned 2.1% over the past year.


Shareholder returns

A30IndustryMarket
7 Day0.7%0.9%0.9%
30 Day-2.6%3.0%2.4%
90 Day-9.1%5.0%4.1%
1 Year-23.4%-26.8%4.3%1.1%6.3%2.1%
3 Year-47.0%-50.8%7.7%-0.9%16.8%4.3%
5 Year-55.6%-62.0%-1.3%-14.0%13.0%-6.0%

Price Volatility Vs. Market

How volatile is Aspial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Aspial undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: A30 (SGD0.15) is trading below our estimate of fair value (SGD6.37)

Significantly Below Fair Value: A30 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: A30 is poor value based on its PE Ratio (17.4x) compared to the Real Estate industry average (10.3x).

PE vs Market: A30 is poor value based on its PE Ratio (17.4x) compared to the SG market (13.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate A30's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: A30 is overvalued based on its PB Ratio (0.9x) compared to the SG Real Estate industry average (0.5x).


Next Steps

Future Growth

How is Aspial forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

5.5%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Aspial has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Aspial performed over the past 5 years?

-3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: A30 has high quality earnings.

Growing Profit Margin: A30's current net profit margins (2.9%) are lower than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: A30's earnings have declined by -3.3% per year over the past 5 years.

Accelerating Growth: A30's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: A30 had negative earnings growth (-55.5%) over the past year, making it difficult to compare to the Real Estate industry average (-7.2%).


Return on Equity

High ROE: A30's Return on Equity (5.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Aspial's financial position?


Financial Position Analysis

Short Term Liabilities: A30's short term assets (SGD1.2B) exceed its short term liabilities (SGD843.8M).

Long Term Liabilities: A30's short term assets (SGD1.2B) exceed its long term liabilities (SGD349.0M).


Debt to Equity History and Analysis

Debt Level: A30's debt to equity ratio (235%) is considered high.

Reducing Debt: A30's debt to equity ratio has reduced from 292% to 235% over the past 5 years.

Debt Coverage: A30's debt is not well covered by operating cash flow (18.1%).

Interest Coverage: A30's interest payments on its debt are not well covered by EBIT (1.1x coverage).


Balance Sheet

Inventory Level: A30 has a high level of physical assets or inventory.

Debt Coverage by Assets: A30's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

What is Aspial's current dividend yield, its reliability and sustainability?

5.00%

Current Dividend Yield


Dividend Yield vs Market

company5.0%marketbottom25%2.4%markettop25%5.4%industryaverage3.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: A30's dividend (5.03%) is higher than the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: A30's dividend (5.03%) is low compared to the top 25% of dividend payers in the SG market (5.41%).


Stability and Growth of Payments

Stable Dividend: A30's dividend payments have been volatile in the past 10 years.

Growing Dividend: A30's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (87.6%), A30's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Aspial's salary, the management and board of directors tenure and is there insider trading?

23.7yrs

Average board tenure


CEO

Wee Seng Koh (51yo)

0yrs

Tenure

0

Mr. Wee Seng Koh serves as the Chief Executive Officer and Executive Director at Aspial Corporation Limited. Mr. Koh served as Non-Executive Chairman of AF Global Limited. He is a Non-Executive Director of ...


Board Age and Tenure

23.7yrs

Average Tenure

53yo

Average Age

Experienced Board: A30's board of directors are seasoned and experienced ( 23.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • David Ng (52yo)

    Chief Executive Officer of World Class Global (WCG)

    • Tenure: 3.8yrs
  • Michael Lim

    Executive Officer

    • Wee Seng Koh (51yo)

      CEO & Executive Director

      • Lee Hwee Koh (52yo)

        Executive Director

        • Tenure: 31.4yrs
      • Steven Koh

        Head of Jewelry Brand - CITIGEMS and Senior Director for Retail Operations

        • Felix Lim (53yo)

          CFO & Company Secretary

          • Jocelyn Chan

            Director of Human Resources


            Board Members

            • Soon Yum Wong

              Lead Independent Director

              • Tenure: 5.8yrs
            • Wee Seng Koh (51yo)

              CEO & Executive Director

              • Lee Meng Ko (57yo)

                Non Executive & Non-Independent Director

                • Tenure: 32.7yrs
              • Lee Hwee Koh (52yo)

                Executive Director

                • Tenure: 31.4yrs
              • Jee Chu Kau (80yo)

                Independent Non-Executive Director

                • Tenure: 17.2yrs
              • Djuniarti Intan Ng (53yo)

                Independent Non-Executive Director

                • Tenure: 6yrs

              Company Information

              Aspial Corporation Limited's company bio, employee growth, exchange listings and data sources


              Key Information

              • Name: Aspial Corporation Limited
              • Ticker: A30
              • Exchange: SGX
              • Founded: 1970
              • Industry: Real Estate Development
              • Sector: Real Estate
              • Market Cap: S$290.637m
              • Shares outstanding: 1.94b
              • Website: https://www.aspial.com

              Location

              • Aspial Corporation Limited
              • No. 07-11, Ubi 55 Building
              • 55 Ubi Avenue 1
              • Singapore
              • 408935
              • Singapore

              Listings

              TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
              A30SGX (Singapore Exchange)YesOrdinary SharesSGSGDJul 1999

              Biography

              Aspial Corporation Limited, an investment holding company, operates in the real estate, financial service, and jewelry businesses in Singapore, Australia, Hong Kong, and Germany. The company engages in the development of luxurious landed, condominium, and commercial projects. It is also involved in the provision of pawn broking and secured lending services; and retail and trading of pre-loved jewelry, timepieces, and new gold. In addition, the company engages in the jewelry retail business under the brands of Aspial, Lee Hwa Jewellery, Goldheart, and Citigems with approximately 70 boutiques; and gold bullion broking and dealing activities. Further, it is involved in the rental of properties; provision of management, property management, and other support services; and jewelry manufacturing, wholesaling, and exporting activities. The company was formerly known as Lee Hwa Holdings Ltd. and changed its name to Aspial Corporation Limited in 2001. Aspial Corporation Limited was founded in 1970 and is based in Singapore. Aspial Corporation Limited is a subsidiary of MLHS Holdings Pte. Ltd. 


              Company Analysis and Financial Data Status

              All financial data provided by Standard & Poor's Capital IQ.
              DataLast Updated (UTC time)
              Company Analysis2020/01/19 12:39
              End of Day Share Price2020/01/17 00:00
              Earnings2019/09/30
              Annual Earnings2018/12/31


              Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.