Yoma

Yoma: (S$0.515) 4QFY15 results marking time, no word on landmark project
Yoma's 4QFY15 net profit climbed 28% y/y to $8.2m, while revenue was flat at $27.6m, taking its FY15 earnings and revenue to $28.1m (+71%) and $110.9m (+10%), respectively.

In the quarter, sales of residential units and land development rights fell 47% as the group deferred sales at Pun Hlaing Golf Estate (PHGE) in hope of better pricing in future.

The decline in property development sales was offset by contributions from recently-acquired automotive distributor, Convenience Prosperity, as well as its property rental and leisure businesses.

Gross margin improved to 47.2% from 46.3% in 4QFY14 following the change in sales mix.

Bottom line was boosted mainly by an unrealised FX translation gain of $6.1m (4QFY14: -$1m) arising from the stronger USD/SGD, but slightly offset by higher taxes (+98%) and minority interests (+121%).

On its outlook, management is cautious of the real estate sector, which is facing increasing supply headwinds and uncertainty over the forthcoming elections. But its other domestic businesses is expected to grow in line with the overall economy.

One of the newer areas of focus for Yoma is in the consumer space with the imminent launch of its first KFC store in Myanmar. The group also expects Balloons over Bagan, one of Myanmar's main tourist attractions to grow from increased visitors.

There was no mention on the status of the landmark commercial development in Yangon despite Yoma receiving approval for the master lease extension to 70 years in Mar '15. The proposed mixed use project has seen multiple delays since 2013 and remains a key overhang on the stock price.

At $0.515, Yoma is trading 25.8x forward earnings and 1.3x P/B.