Yoma

Yoma: DBSV hosted hosted Yoma on a two-day roadshow in Hong Kong. Investors who are keen on Myanmar opening up mostly agreed that Yoma is a direct and liquid access to this frontier market. Discussions centered on Yoma’s property business, with key concerns being sustainability of demand and pricing, Yoma’s funding needs and its ability to execute an aggressive and diversified expansion plan. Also, the share price has more than doubled within the year and investors are apprehensive of entering at current levels, and asked about possible rerating catalysts. Property sales remain healthy but house cut FY14F/15F earnings by 14%/9% as higher costs would squeeze margins and growth. No change to long term positive view on Yoma; maintain BUY with lower TP of $1.02 (Prev $ 1.08).