Aspial Corp, which has interests in the retail business of jewellery, pawnbroking and property, has been steadily buying back shares for the past month as the company takes advantage of the current market price at half of its NAV (net asset value) of 14.43 cents per share as at Dec 31, 2022.
The most recent buyback on April 3 was for 100,000 shares at 7.9 cents each. This brings the total number of shares bought back under the current mandate to more than 8.63 million, equivalent to 0.399% of the total share base.
Aspial’s shares have been trading at a tight range of around 8 cents.
On Feb 27, Aspial reported revenue of $506.2 million for FY2022 ended Dec 31, 2022, up 21% over FY2021, led by growth in its retail segment. However, its reversed into a loss of $14.2 million in FY2022 from earnings of $363,000 in FY2021.
Aspial says it incurred higher sales and marketing expenses and booked $8.7 million as allowance for a writedown of development properties and properties held for sale.
For the current FY2023, the company warns that even with the easing of pandemic curbs, the outlook remains challenging because of inflation and “elevated” interest rates.
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“Having successfully consolidated its Singapore retail business under Aspial Lifestyle in 2022, the group plans to pursue new business opportunities, optimise its resources, and enhance the effectiveness and efficiency of its existing operations this year,” says the company in its earnings commentary.
For its retail business, Aspial holds a “cautious yet optimistic outlook” for FY2023.
For its pawnbroking business, Aspial sees “healthy growth” as demand for short-term loans rise with the increased economic activities. It expects the recent acquisition of Maxion Holding in Malaysia to contribute positively to its results this year.
See also: Chairman and CEO Kuok raises stake in Wilmar International following softer 1Q
Aspial is also known for the development of Australia 108 in Melbourne. According to the company, with the easing of the pandemic, it is seeing “increasing traction” in the sale of its remaining units in the development and is “cautiously optimistic” that demand will grow this year. It is also maintaining its efforts in marketing the commercial units in its portfolio for both rent and sale in Singapore.
Australia 108 in Melbourne / Image: Aspial Corp
Wilmar’s ID sells; chairman buys
Kishore Mahbubani, an independent director of Wilmar International, has sold part of his holdings in the company, taking advantage of a recent gain in the palm oil giant’s share price.
On April 3, Mahbubani, who has been on the board of the company since January 2016, sold 310,000 shares at $4.25, collecting proceeds of nearly $1.32 million. With the sale, he is left with a deemed stake of 200,000 shares.
In contrast, Kuok Khoon Hong, chairman, CEO and controlling shareholder of Wilmar, has been adding to his stake. In a series of open market purchases over the past few months, Kuok has raised his stake to some 823.1 million shares, or 13.19%. His most recent purchase was on March 10, when he acquired one million shares at $3.93 each.
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In FY2022 ended Dec 31, 2022, Wilmar reported record earnings of US$2.4 billion ($3.18 billion), up 27.1% from FY2021. Revenue came in US$73.4 billion, up 11.6% from FY2021.
The company calls FY2022 an “exceptional” year where the company enjoyed higher prices of the commodities it sells. Wilmar plans to pay final dividend of 11 cents, bringing its total FY2022 payout to an all-time high of 17 cents. The dividend will go ex on April 27. By selling on April 3, this means Mahbubani would have missed out on the dividend.
