YOMA STRATEGIC HOLDINGS LTD (SGX:Z59)
Yoma Strategic Holdings - 3q20 Trading Updates
- Yoma Strategic's 3Q20 revenue grew 33% y-o-y to US$24m mainly from Yoma Land (development +36% y-o-y); Yoma F&B (revenue tripled) and Yoma Financial Services (+13% y-o-y).
- City Loft@ Star City sold 119 units in 3Q20; 84% sales take-up of 651 launched units to date.
- Yoma F&B has opened 13 new stores; total of 91 stores to date, ahead of FY20 target of 90 stores.
- Divested edotco Myanmar; divestment gains of US$48m to support FYE March 2020 financials.
What’s New
- Yoma Strategic (SGX:Z59)’s 3Q20 revenue grew 33% y-o-y to US$24.4m mainly from Yoma Land (real estate development +36% y-o-y), Yoma F&B (revenue tripled) and Yoma Financial Services (Yoma Fleet +13% y-o-y).
- The revenue growth was offset by lower revenue from residential leasing revenue (-14% y-o-y) on higher competition, and lower revenue from Yoma Motors (-16% y-o-y) mainly due to fewer tractors sold amid continued weakness in the agriculture sector. However, automotive sales have picked up with Volkswagen sold 46 vehicles and Mitsubishi sold 146 vehicles vs 43 vehicles in 3Q19.
- Yoma Land – City Loft@Star City sold 119 units in 3Q20, total sales take-up rate achieved 84% of 651 units launched. Peninsula Residences sold three units in 3Q20 bringing total sales to 17 units to date (15 sold as at end-FYE March 2019).
- Yoma F&B – Revenue growth was mainly led by contributions from new subsidiaries; YKKO (acquired in February 2019) and KOSPA (entered into JV in March 2019) and 13 new restaurants opened in 3Q20. Total number of stores has reached 91, ahead of FY20 target of 90 stores, which comprises 44 KFC outlets, 43 YKKO outlets, three Auntie Anne’s kiosks and one Little Sheep Hotpot vs 33 KFC stores, 37 YKKO outlets, two Auntie Anne’s kiosks and one Little Sheep as at FYE March 2019).
- Yoma Fleet – Number of vehicles has grown 19.2% y-o-y to 1,187 vehicles.
- Wave Money – revenue and transaction numbers were up 26.4% q-o-q and 24.2% q-o-q respectively. EBITDA remained positive.
- Divested remaining edotco Myanmar – Yoma divested the remaining 12.5% stake in edotco Myanmar for US$57.5m, monetising a gain of US$48m.
- Ayala Corporation partnership – First tranche of US$109m of shares was placed on 2 December 2019. Operations remain stable with positives from good sales take-up from its affordable home launches. We expect FYE March 2020 results to be supported by gains from divestment of edotco Myanmar.
Maintain BUY; Target Price of S$0.50.
- We maintain our BUY rating with Target Price of S$0.50. Despite some disappointment on Myanmar’s economic growth, we believe Yoma Strategic remains the best proxy to ride on this potential growth in the longer term.
- With Ayala Corporation as a new major strategic shareholder, we see new capital injection for more expansions, especially in the real estate business.
- See Yoma Strategic Share Price; Yoma Strategic Target Price; Yoma Strategic Analyst Reports; Yoma Strategic Dividend History; Yoma Strategic Announcements; Yoma Strategic Latest News.
Rachel TAN
DBS Group Research
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Derek TAN
DBS Research
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https://www.dbsvickers.com/
2020-02-17
SGX Stock
Analyst Report
0.500
SAME
0.500
