Aspial reports 2018 net profit surged on CityGate project

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Aspial reported on Monday its 2018 net profit came in at S$28.35 million, up from S$2.31 million a year earlier, amid sales recognition from the CityGate project in Singapore.

Revenue for the full year jumped 84 percent on-year to S$898.445 million, it said in a filing to SGX after the market close on Monday.

Real-estate business revenue increased 209.2 percent to S$574.2 million for the full year, mainly on recognizing sales at CityGate, which received its temporary occupation permit during the year, and on revenue from the settlement and handover of completed residential units for the Avant and Australia 108 projects in Melbourne, Australia, Aspial said.

The financial services business saw revenue rise 5.6 percent to S$203.7 million for the year on higher interest income and sales from retailing and trading jewelry and branded merchandise, it said.

Revenue from the jewelry business increased by 12.8 percent on-year to S$133.5 million, mainly on recognition of sales from the Niessing operations and increase in sales from the gold bullion business, Aspial said.

Aspial was upbeat in its outlook.

“Going forward, the group expects to make substantial profits from its Australia 108 project in Australia. The real estate business is expected to contribute significantly to the group’s revenue and profitability in FY2019 and FY2020,” it said, noting it has already locked in around S$610 million of unbilled contracts on the project.

“The group expects the profit margin of the subsequent phases of Australia 108 project to be higher than the earlier ones as the average
selling prices for higher floors are better than those for the lower ones,” it added.

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