Yoma

Yoma: OCBC maintains Hold with $0.87 TP. Note that Yoma reported that it has entered into a strategic alliance with Mitsubishi Corporation to jointly explore business opportunities in Myanmar. In addition, Mitsubishi Corp and Mitsubishi Estate havesigned an MOU to invest in Yoma’s Landmark project (excluding the Peninsula Yangon). House see these developments as positives which points to management’s continued deal-making ability and ambitions to grow as a major conglomerate. There are two sets of implications here, in our view. First, that Mitsubishi opted to invest in the Landmark project before construction is slated to begin in Nov-13 leads us to establish a base case that the lease completion and subsequent 1-for-4 rights issue at S$0.38 would occur this quarter. Second, see this alliance with the blue-chip Mitsubishi cementing Yoma’s reputation (note that Mitsubishi Estate and CapitaLand are partners in Singapore) and further widening its access to capital and business opportunities in Myanmar