Myanmar Times, 30 Oct 2017
On October 27, Yoma Strategic, an affiliate of First Myanmar Investments Company (FMI), which is listed on the Yangon Stock Exchange (YSX), announced a strong set of financial results for the period ended September 30.
The company announced revenues amounting to S$59 million for the six months to September 30, 2017, representing an increase of 38.6 percent year-on-year (yoy). This was mainly driven by growth in demand for its New Holland tractors and other construction equipment, as well as higher contributions from a larger number of Kentucky Fried Chicken (KFC) fast food stores. As a result, earnings for the period rose 8.9pc yoy to S$10.5 million.
Yoma Strategic runs three main business divisions in Myanmar: real estate development, automotive and heavy equipment sales and food and beverage distribution. It also invests across a range of sectors such as telecommunications and tourism.
The company has been listed in Singapore since 2006, where its shares are now trading at 59 Singapore cents each. It is controlled by Myanmar tycoon Serge Pun and run by Mr Pun’s son Melvyn. The Puns also control FMI, which listed on YSX just last year.
The company is seeing high demand for its tractors and other heavy equipment from the Myanmar agriculture sector. During the recent July-September quarter, it sold 600 tractors under a contract with the Ministry of Agriculture and Irrigation (MOAI), which is running a nationwide mechanization program to help farmers raise productivity. Yoma Strategic also leases vehicles to the MOAI.
Business at the KFC chain of fast food stores has also been doing well. The company opened its 16th KFC store on September 30 in Myanmar, where KFC is currently available in Yangon, Mandalay and Taunggyi.
Yoma Strategic is also a big player in the country’s property sector, where revenues for the period were mainly contributed by unit sales at Zone B and C of its StarCity condominium project in Thanlyin, Yangon.
Yoma Strategic can look forward to further contributions from StarCity in the months ahead. Based on a 2015 agreement under which it had bought back the land developing rights relating to Zone C from a third party investor, it is now entitled to the revenue and profits in relation to sales of units made prior to the date of the buyback.
Meanwhile, it can also look forward to contributions from two recently completed Dulwich International Schools at Pun Hlaing Estate and StarCity. Prospects in the automotive and heavy equipment business appear to be promising too, with the company due to deliver another 151 tractors to the MOAI, which should rake in an additional S$4 million in revenue in the coming quarter, Yoma Strategic said in its financial statements. It also has an additional order of 500 tractors.
at September 30, 2017, Yoma Strategic held cash amounting to S$67.9 million compared to just S$28.3 million last year. Total borrowing rose to S$197 million. The bulk of the company’s existing loans are from the Asian Development Bank
Shares of Yoma Strategic closed October 27 at 50 Singapore cents apiece, valuing the company at S$1 billion, or 32 times its earnings. The shares hit a high of 65 cents earlier this year. Yoma Strategic has not paid a dividend for the current financial year.
