Yoma Strategic Holdings (Yoma) made a series of announcements this morning. First, it reported a definitive shareholders agreement with Hongkong and Shanghai Hotels to redevelop the former Myanmar Railway Company headquarters on the Landmark site into The Peninsula Yangon hotel. We believe this is subject to the successful acquisition of the Landmark site, which currently has a deadline in end June 2014. Secondly, Yoma will take a 80% stake in developing two sites near FMI City in Hlaing Tharyar Township, Yangon into a development with 90 residential units and 19.9k sq ft of commercial leasing space. Thirdly, the company has entered into agreements with ED&F Man Holdings Ltd and PMM Partners Ltd, separately, to invest in coffee planting at the Maw Tin Estate in Ayeyarwaddy and supplying UHT dairy products in Mayanmar, respectively. Finally, Yoma also announced plans to develop educational facilities with Harrows International Management Services and Dulwich College International in Pun Hlaing Golf Estate and Star City, respectively. We will meet with management to discuss these developments later this morning and, in the meantime, maintain BUY with our fair value estimate of S$0.97 under review.

Source: OCBC Research - 11 Mar 2014