• Boost from one-time gains
• Firm sales at Star City
• Lower FV estimate to S$0.87

Boost from fair value gains at PHGE

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, partially offset by a S$5.2m fair value gain in 4QFY14 for a 16-unit apartment block in Pun Hlaing Golf Estate which has been retained as an investment property. Excluding fair value gains, we estimate core FY14 PATMI at S$11.2m, which forms 95% 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. Staff costs also grew 98.5% YoY to S$13.1m as the group continued to build its employee base.

Firm sales in Star City development

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. The group recognized S$10.0m of revenue in Zone A in 4QFY14 versus S$14.8m over the last six quarters, and the remaining S$36.3m of progress billings is expected to flow into the topline over the next 9 to 15 months. In Zone B, Yoma also received an additional S$3.0m incentive fee for achieving the stipulated sales target.

Introducing 25% discount to Landmark surplus, lower fair value to S$0.85

There is as yet limited color for the Landmark site acquisition, which is five weeks away from its 30 June 2014 deadline. While management remains confident of obtaining the lease top-up from the Railway Ministry, on which the acquisition is conditional, we see yet another extension of the deadline to be a possibility if more time is needed. Given limited visibility regarding Landmark’s completion schedule at this juncture, we introduce a 25% discount to the project’s contribution to our RNAV calculation. As a result, our fair value estimate dips to S$0.87 from S$1.00 previously; maintain BUY.

Source: OCBC Research - 22 May 2014