Yoma Strategic

Yoma Strategic: OCBC note that Yoma reported a negative 2QFY13 PATMI of $4.2m, mostly due to a $5.4m one-time non-cash share based payment to the CEO, partially offset by increased sales of residences and land development rights. Accounting for non-operating expenses, net operating profit attributable to equity holders would have been S$1.7m – up 22% YoY – which house judge to be mostly in line with expectations. 2QFY13 gross margins were somewhat higher than forecasted as mgt took a one-time reversal of construction costs of $1m during the quarter, though this was offset by higher admin costs than expected. 1HFY13 net profit, ex-non-operating expenses, now constitutes 61% of house annual FY13 forecast, which house keep intact. Continue to be positive on the long term outlook of Yoma as the Myanmar economy continues to open up, but view Yoma’s shares to be fairly priced at current levels based on its fundamental valuation. Maintain HOLD with an unchanged fair value estimate of $0.51.