Yoma

Yoma: OCBC upgrades to Buy with $0.97 TP. The house investment thesis rests on two key parts. First, base case is for the Landmark acquisition to complete in 1H14. The accretion from this project makes up 41% of Yoma’s fair value estimate and we anticipate a successful acquisition to be a key price catalyst. Second, note that Yoma’s share price in 2013 has stagnated mostly between $0.70 and $0.90 despite management penning potential deals across diverse businesses. Believe the market is generally discounting these deals’ eventual earnings impact given their ubiquity across various companies on the SGX and a dearth of fruitful outcomes to date. In 2014, however, expect Yoma to transition from a mostly deal-making phase into one where management would deliver, from its incubated plans, large-scale operational traction and fuller earnings visibility. We see this likely leading to a meaningful re-rating for the share price.