ASPIAL Corporation’s net profit for the fiscal first quarter ended March 31, 2014, more than doubled to $27.78 million on fair value gain on investment properties.
The investment holding company engaged in jewellery, property development and financial services said yesterday that it had booked in $25.1 million of fair value gain on investment of eight units of investment properties at East Village. Excluding said gain, the group’s pre-tax profit would have been $15.6 million, up from $14.5 million a year ago.
Turnover rose 36 per cent to $128.03 million, with its property business doubling in revenue to $63.4 million, driven primarily by progress recognition of sales at 8 Bassein, The Hillford and Urban Vista, and final recognition of sales from East Village and Cardiff Residence.
The jewellery business recorded a $1.1 million drop in revenue to $39.1 million due to the closure of retail stores.
Aspial said that consolidation of retail stores resulted in the closure of three stores in the reporting quarter.
Its financial services business reported a 1.1 per cent increase in revenue to $26.6 million, driven by a healthy pledge book.
Aspial said it expects to make “substantial” profits from its development projects, both locally and in Australia, due to the healthy margins for most of the projects.
It also expects its property business to continue to contribute significantly to its revenue and bottom line as it has locked in total revenue of $490 million based on the units sold in its property projects, which will be progressively recognised in accordance with the stage of construction.
On the jewellery front, it said that it will continue to achieve higher sales and improve rental efficiency by constantly reviewing and consolidating its retail network.
At the same time, it will continue to capitalise on its largest retail network and pledge book for its financial services business to capture more market share.
Aspial’s shares last traded at 46.5 cents on Friday.
Credits: ST Property