Yoma Strategic Holdings (Yoma) reported a negative 2QFY13 PATMI of -S$4.2m, mostly due to a S$5.4m one-time non-cash share based payment to the CEO, partially offset by increased sales of residences and land development rights. Accounting for non-operating expenses, net operating profit attributable to equity holders would have been S$1.7m – up 22% YoY – which we judge to be mostly in line with expectations. 2QFY13 gross margins were somewhat higher than forecasted as management took a one-time reversal of construction costs of ~S$1m during the quarter, though this was offset by higher admin costs than expected. 1HFY13 PATMI, ex-non-operating expenses, now constitutes 61% of our annual FY13 forecast, which we keep intact. We continue to be positive on the long term outlook of Yoma as the Myanmar economy continues to open up, but view Yoma’s shares to be fairly priced at current levels based on its fundamental valuation. Maintain HOLD with an unchanged fair value estimate of S$0.51.
2QFY13 results marred by one-time non-cash payment
Yoma Strategic Holdings (Yoma) reported a negative 2QFY13 PATMI of -S$4.2m, mostly due to a S$5.4m one-time non-cash share based payment to the CEO, partially offset by increased sales of residences and land development rights. Accounting for non-operating expenses, net operating profit attributable to equity holders would have been S$1.7m – up 22% YoY – which we judge to be mostly in line with expectations. 2QFY13 gross margin was somewhat higher than forecasted as management took a one-time reversal of construction costs of ~S$1m during the quarter, though this was offset by higher admin costs than expected. 1HFY13 PATMI, ex-non-operating expenses, now constitutes 61% of our annual FY13 forecast, which we keep intact. 2Q13 revenue was S$11.6m, increasing 59% YoY mainly due to stronger sales at Pun Hlaing Golf Estate and Star City.
Star City sales going well
Management reports that, since Star City’s acquisition, 249 units out of a total of 528 units in Building 3 & 4 have been sold as of 30 Sep 2012, and that the pace of sales continues to be strong. As of end 2QFY13, Yoma has received cash deposits of ~S$9.3m, which is about 30% of the total contractual purchase prices (of which S$2.4m has been recognized based on 9% completion).
Foreign investment law reported to be ready soon
We note it was recently reported that Myanmar’s foreign investment law would likely be finalized over the near term. Maximum foreign ownership in joint ventures in restricted sectors is widely expected to be set at 50%, which would be a significant milestone in the process of political and economic liberalization for Myanmar.
Maintain HOLD
We continue to be positive on the long term outlook of Yoma as the Myanmar economy continues to open up, but view Yoma’s shares to be fairly priced at current levels based on its fundamental valuation. Maintain HOLD with an unchanged fair value estimate of S$0.51.
Yoma Strategic Holdings (Yoma) reported a negative 2QFY13 PATMI of -S$4.2m, mostly due to a S$5.4m one-time non-cash share based payment to the CEO, partially offset by increased sales of residences and land development rights. Accounting for non-operating expenses, net operating profit attributable to equity holders would have been S$1.7m – up 22% YoY – which we judge to be mostly in line with expectations. 2QFY13 gross margin was somewhat higher than forecasted as management took a one-time reversal of construction costs of ~S$1m during the quarter, though this was offset by higher admin costs than expected. 1HFY13 PATMI, ex-non-operating expenses, now constitutes 61% of our annual FY13 forecast, which we keep intact. 2Q13 revenue was S$11.6m, increasing 59% YoY mainly due to stronger sales at Pun Hlaing Golf Estate and Star City.
Star City sales going well
Management reports that, since Star City’s acquisition, 249 units out of a total of 528 units in Building 3 & 4 have been sold as of 30 Sep 2012, and that the pace of sales continues to be strong. As of end 2QFY13, Yoma has received cash deposits of ~S$9.3m, which is about 30% of the total contractual purchase prices (of which S$2.4m has been recognized based on 9% completion).
Foreign investment law reported to be ready soon
We note it was recently reported that Myanmar’s foreign investment law would likely be finalized over the near term. Maximum foreign ownership in joint ventures in restricted sectors is widely expected to be set at 50%, which would be a significant milestone in the process of political and economic liberalization for Myanmar.
Maintain HOLD
We continue to be positive on the long term outlook of Yoma as the Myanmar economy continues to open up, but view Yoma’s shares to be fairly priced at current levels based on its fundamental valuation. Maintain HOLD with an unchanged fair value estimate of S$0.51.
No comments:
Post a Comment