YOMA STRATEGIC HOLDINGS LTD
Z59.SI
Yoma Strategic Holdings - Diversification Efforts Bearing Fruit
- Yoma’s 4QFY17 PATMI increased to S$24.1m from S$8.9m in the same period last year mostly due to higher fair value gains on investment properties and improved gross profit margins driven by the sales of residences and LDRs in 4QFY17 (as compared to mostly sale of buyback units in StarCity in 4QFY16).
- Full year FY2017 PATMI now cumulates to S$35.9m, down marginally by 3.5% versus S$37.2m in FY2016 and we deem this set of results to be mostly within expectations.
- In terms of the topline, FY2017 revenues increased 11.0% to S$124.2m.
- Notably, about 47% of revenues were attributed to the Yoma’s non real estate business which points to management’s diversification efforts bearing fruit. Specifically, revenues from the automotive and heavy equipment business increased 27% in FY2017 to S$38.1m due to the growth in its New Holland tractor business.
- The group’s consumer business, which comprises its KFC operations, also saw its revenues more than double to S$10.9m in FY2017 versus S$4.6m last financial year.
- For its real estate segment, however, Yoma reports that the property market in Myanmar continues to see softness and revenues generated from the sales of residences and LDRs decreased by S$4.0m to S$46.5m in FY2017; that said, this decline was partially offset by a S$1.5m increase in contributions from the real estate and services segment.
- Maintain HOLD with an unchanged fair value estimate of S$0.54.
Eli Lee
OCBC Investment
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http://www.ocbcresearch.com/
2017-05-24
OCBC Investment
SGX Stock
Analyst Report
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