Yoma

Yoma: CIMB iniatites coverage with a Reduce Call and $0.75 TP. Note that Yoma’s outlook has benefited enormously from Myanmar’s opening-up. The immediate catalyst ahead would be the potential completion of the Landmark development acquisition. In light of the upcoming 2015 elections in Myanmar, political uncertainty is a key risk. Yoma is still the only pure-play Myanmar stock. As long as Myanmar does not backtrack on its reforms, Yoma‟s property focus and earlymover advantage provide ample room for earnings growth. Helmed by an experienced management team and enjoying a capital-raising platform advantage with its SGX listing, Yoma has an edge over its local peers that may not have such access to capital. House valuation for Yoma‟s existing assets stands at $0.75 per share and the current trading price indicates full valuation. A key near term catalyst lies with the pending acquisition of a 10-acre site in downtown Yangon. If the deal is completed, development of the site into a mixed-use estate could add 9 Scts to house valuation.