Yoma reported 4FYQ14 PATMI of S$6.4m, which dipped 44.9% YoY mostly due to the absence of gains from a bargain purchase recognized in 4QFY13, and partially offset by a S$5.2m fair value gain on investment properties in 4QFY14. Excluding these onetime items, we estimate core FY14 PATMI at S$11.9m, which forms 101% of our full year estimates. This is judged to be in line with our expectations but below consensus.

In terms of the topline, 4QFY14 revenues increased 34.4% to S$27.5m as the group recognized higher sales from property developments and land rights mostly from Star City. Sales in Star City remain firm; as at end Mar-14, 528 units have been sold in Zone A’s Buildings A3 and A4 and 622 units have been sold in Zone B. We note that there is limited color for the group’s highly anticipated Landmark site acquisition and, given that Yoma now has six weeks to the long-stop deadline, we believe that the share price could potentially see increased volatility ahead. We will speak with management later today and, in the meantime, put our buy rating and fair value estimate of S$1.00 UNDER REVIEW.

Source: OCBC Research - 21 May 2014