Yoma

Yoma: 4QFY13 earnings increased 452% to $11.5m, mainly due to fair value gains of $9.1m from the consolidation of the group’s Xunxiang (Dalian) Enterprise Co Ltd. Excluding the one-off gain, earnings grew 46% to $3.0m. Full year earnings amounted to $14.4m, an increase of 139%. 4QFY13 revenues increase 26.9% to $20.5m as a result of the increase in sales of residences and land development rights in Myanmar. The group’s full year revenues increased 54% to $60.5m, mainly due to higher selling prices of land development rights. Revenue recognition based on the percentage of completion from its Star City development will see the balance of approximately $55.9m to be recognized over the next 18-24 months. The group’s core business remains as real estate development in Myanmar and Yoma expects business activity will continue to grow in line with the rapid development of the country as a whole. With demand outpacing supply in most areas of residential accommodation, the Group is actively looking at new projects including at the more affordable end of the market. The situation is expected to continue for at least the next 12 months. The Group’s major move into commercial real estate will be signaled by its completion of the acquisition of the Landmark Project in downtown Yangon. The proposed development of the offices, hotels and retail podium on this site is likely to be a flagship development for the Group. Upcoming catalyst include the result of the bidding for a new telecoms licence, expected to be announced before the end of Jun 2013. Yoma declared dividend of 0.5¢ per share, implying a FY13 dividend yield of 0.7%. NAV per share of $0.309, implied P/B of 2.7x.