Yoma

Yoma: Good set of 1Q12 results, which could possibly, maintain strong interest in stock. Rev at $13.6m, +130.7% yoy and -15.5% qoq, while net profit at $2.4m, +43.3% yoy and +4.3% qoq. Gross margin at 37.1% vs to 26.7% qoq mainly due to the higher selling prices of LDRs and houses in the current qtr. Strong rev led by sales of housing and land development rights (LDRs), with a total of 98 plots of land sold as vs 20 plots QOQ. In addition, Grp also recorded an increase in the rev from sales of houses of $5.48m in the current qtr vs $1.51m QOQ. Following successful acquisition of the Star City project on June 1, 2012, grp now has interests in 3 major ppty developments in Myanmar: Pun Hlaing Golf Estate, FMI City and Star City. Historically, group has focused on both sales of land, in form of LDRs, and finished villas, houses and apartments. However, going forward likely to be a greater emphasis on the sale of finished properties rather than land sales. The group is also looking to explore agricultural opportunities elsewhere in Myanmar. However, notes th at given long gestation period, unlikely agricultural division will have material impact on rev for the next couple of yrs. Separately, grp announced a MOU with Parkson Retail Asia to break into Myanmar retail market with a US$3m JV. Under the terms of the agreement, Parkson Myanmar's share of investment in JV is 70%, while Yoma will hold 20% and the remaining 10 per cent will be held by FMI. The new Parkson department store will be located in Yangon.