Yoma

Yoma: good set of 4QFYMar12 results. Revenue at $16.1m, double yoy, mainly due to the increase in the sales of housing and land development rights (“LDR”) in Myanmar. LDRs equivalent to 98 plots of land were sold in 4Q12, vs 20 plots yoy. There was also $0.5m revenue contribution from the newly set up auto business. Gross profit at $5.5m, +260% yoy. Gross margins expanded to 34.4% from 20%, mainly due to higher ASP of LDRs and houses (approx + 20% to 25% yoy). Core net profit significantly improved. However, headline net profit at 2.1m, -46.8% yoy, mainly due big one-off boost from associate contributions (revaluation surplus) in 4Q11. Post restructuring, Yoma has ceased to hold that associate. For FY12, core net profit at $6.0m, +130% yoy. Balance sheet improved significantly. Yoma now has net cash at $20.1m (3.8cts/sh), vs net debt of $1.7m a yr ago. The group cash balances rose to $20.1m from $2.5m a yr ago, and pared down debt to zero from $4.2m. Mgt notes the positive sentiment in the real estate market in Myanmar reported at the end of 3Q12 has continued into 4Q12, and if anything, has become even more positive. Prices on a psf basis have continued to increase through the yr and have continued to do so after the end of its FY12. Says outlook for the coming 12 mths is positive. Adds, sales at Star City, the major new property devt that it has agreed to purchase 70% stake in (pending EGM approval on 25 May ’12), has continued to be very strong. For building 3 it will acquire, 172 apts hav been sold, with a further 30 reserved, out of a total of 264 apts. Revenue from these sales will be accounted for on a completion basis and is expected to be booked in FY13. For Yoma’s agri division, planting of black pepper is underway, with ~700 acres of land cleared and >250 acres of black pepper already been planted. By end July, it expects to have planted 500 acres of black pepper. While not expected to have financial impact in the current yr, mgt says it offers promising prospects in the medium term. The group declares 0.5cts div, translating to 1.3% yield. The stock trades at 33.3x P/E, 1.5x P/B. Reminder that Yoma goes ex-rights on 31 May. 4-for-5 rights offer at $0.24/sh.