This morning, Yoma reported its shareholdings in Digicel Asian Holdings (“the Digicel JV”), which is involved in telecommunications infrastructure projects in Myanmar. Under the announced structure, YSH Finance (80% owned by Yoma and 20% owned by FMI group) will hold 25% of the Digicel JV. The JV plans to roll out telecommunications towers across Myanmar as the country aims to rapidly increase mobile phone penetration after the award of two telco licenses last year.

We note that the JV has already clinched a contract to provide telecommunication towers to Ooredoo (which won one of the telco licenses) and also intends to offer similar services to other telco operators in Myanmar. Maintain BUY on Yoma with an unchanged fair value estimate of S$0.87.

Source: OCBC Research - 28 May 2014