Yoma

Yoma: Announced 4Q14 results which were in line with estimates as net profit came in at $5.8m (-44.9%) taking FY14 net profit to $16.1m (+16.4%). Revenue for the quarter rose 34.4% to $27.5m while gross margins inched up 4.5ppt to 46.4%. The strong top-line was led by revenue generated from the sale of residences and land development rights (LDRs), namely driven by its key flagship projects - Star City and Pun Hlaing Golf Estate. The group also benefitted from the recent revenue contribution of its ‘Balloons Over Bagan’ tourism business. Bottom-line was however weighed by a 39.2% drop in other income due to a lack of contribution from fair value gains versus the previous year, and a 61.7% rise in admin expenses due to higher staff costs to meet the expansion of its businesses. Operationally, Yoma guided that sales at its Star City sales have remained robust, with the group selling ~528 units in Star City’s Zone A Buildings A3 and A4, which amounted to ~$61.1m in revenue as at Mar’14. The balance of unrecognised revenue of ~$36.3m is expected to be recognised within the next 9 to 15 months as construction progresses. Meanwhile out of 1,043 units in Star City Zone B, the group sold during the current financial year 622 units, of which 148 units were sold in 4Q14. Furthermore, the group has received booking deposits for an additional 111 units as at Mar’14. Going forward, management remains optimistic about its growth prospects, and believe that its real estate developments will continue to benefit from Myanmar’s ongoing urbanisation as well as the mismatch in supply and demand. The group also expects its more recent investments to build new growth engines for the future that will help achieve greater long-term sustainable growth for its shareholders.