Yoma

Yoma: 3QFY14 net profit rose 42% y/y to $5.2m on the back of a 133% spike in revenue to $30.2m, mainly attributed to its real estate segment of $27.2m (+124%) and the maiden contribution in its luxury travel and tourism business of $2.1m. The stellar results attributed 83% of both consensus' revenue and net profit; We do not rule out earnings upgrades for its FY14 estimates. Forward revenue should be underpinned by the $45.9m to be recognized over the next 12-18 months, from progressive construction of flagship development Star City Building A3 and A4, which are 99.6% sold. Meanwhile, demand for the 1,043 apartments units in Star City Zone B has been strong, with 474 units sold and 143 units received booking deposits, compared to 150 units sold and 55 units with booking deposits at the start of the quarter. Yoma remains positive on the growth potential of Myanmar, riding on the country's reintegration into the global community with the hosts of regional events. The group expects to benefit from its direct involvement in key infrastructure areas such as telecommunications, railway and financial services, via partnerships with international companies, underpinned by the government's reforms. Meanwhile, the development of Myanmar's first special economic zone, Thilawa, which commenced Nov'13, will likely drive substantial interest into the manufacturing sector and may translate into significant demand on the Star City development, located near the zone. Bloomberg consensus (1 Buy, 1 Hold, 2 Sells) has 12-month TP of $0.87. At $0.73, Yoma trades at 9MFY14 annualized P/E of 67.6x and 2.3x P/B.