Aspial Treasury- What really matters in a Bond

Due to the lack of financial information on this company I’ll be doing on the corporate company

Matures on 28 August 2020 (4 more years) | 5.25% | Semi-annually coupon payment | Subsidiary of Aspial Corporation | Founded in 2015 | Jewellery / Maxi Cash / World Class Island (Real estate)

1)  IDENTIFICATION OF BOND BELOW PAR VALUE

  • Current market value : 0.915 ($85 below par value)

2)  LEARN ABOUT THEIR NUMBERS

  • Debt To Equity: 485% ( super high reliance on financing – Not safe)
  • Growth Performance : 6.65%
  • Current Ratio : 2.49 ( Above average) – Genting is better
  • Poor management ability ( Reducing dividend payout | Poor net income growth | Poor cashflow management)screen-shot-2016-10-11-at-12-19-56-pmscreen-shot-2016-10-11-at-12-19-52-pm

 

Even though this bond is one of the highest paying one, I would be more conservative in investing into this company due to it’s poor management ability. How can you have such a high Debt/Equity ratio with an above average current ratio yet having a poor net income margin??? – something is wrong somewhere.

“+1 Knowledge point”

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4 thoughts on “Aspial Treasury- What really matters in a Bond

  1. I think each sector is different. Aspial is well diversified. The jewelry, property development and pawning biz are all doing well. It’s property development has escaped the poor economic wrath which others in the same industry were caught. It has fully sold (almost) most of its developments in Spore and even in Australia. Probably due to its business of having to build on leverage funds first before seeing payments coming in on completion of its developments that made its accounts in poor image. I feel Aspial is in good shape.

    Liked by 1 person

    • Hey Fred!

      You’re right but I feel that their current property expansion into Melbourne (Residential Tower and Skyscrapper) might be abit too aggressive especially with such a high debt to equity ratio. Additionally, they have yet to spin off their property company through IPO (to get more equity).

      That in my opinion is not really a “Safe” Investment for me to put my money in, but anyway, I’m still a noobie trying to figure out stuff:)

      Like

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