Yoma

Yoma: its 70% held subsidiary, German Car Industries Company (GCI) has entered into a non-exclusive service partner agreement with Volkswagen, to begin operating the brand’s first service centre in Myanmar this month. GCI will provide maintenance and repair services for Volkswagen branded vehicles, including the sale of genuine vehicle parts. The auto market in Myanmar is currently dominated by Japanese cars and Volkswagen currently has no manufacturing facilities or car show room in Myanmar, hence this agreement is expected to have limited financial impact for Yoma over the near term. Nevertheless OCCB believes this deal further strengthens the growth potential of Yoma’s auto division, together with a similar service agreement with Mitsubishi earlier. The house maintains its Hold rating on Yoma with TP $0.87.