Yoma

Yoma: OCBC upgraded to HOLD, with TP of $0.87 (previously 0.71). Further catalyst for share price lay in the completion of the Landmark Project acquisition in downtown Yangon, but note that management has raised the possibility of another extension for the deadline. That said, the signing of a Heads of Agreement with the Hong Kong and Shanghai Hotels Group and other preparations by Yoma for site development points to a good level of confidence that they would acquire the site eventually. Management has also reported that they have received verbal assurance from relevant authorities that a new lease would be granted. Sales at launched projects remain firm, with 491 out of total 528 units sold in buildings 3 and 4 at Star City. In addition, management showed a strong deal-making record in FY13 and is in the midst of acquiring more land sites and establishing businesses in tourism, retail, agriculture and automobiles. One significant potential kicker for shareholders is Yoma’s participation (with Digicel and Quantum Strategic Partners) in tendering for one of the two telco licenses awarded by the Myanmar authorities in Jun-13.