• 4QFY15 figures in line
• Healthy leasing performance
• Melvyn Pun to be new CEO

4QFY15 numbers broadly within expectations

Yoma reported that 4QFY15 PATMI increased 47.5% YoY to S$11.9m, mostly due to increased fair value gains on investment properties and forex gains from the appreciation of the US dollar against SGD. Over the quarter, the group recognized an S$8.03m revaluation gain from Star City A5 and Lakeview G in PHGE, in addition to a S$6.08m forex gain and a S$6.5m fair value loss on prepayments made to a JV for coffee cultivation. 4QFY15 topline remained mostly flat at S$27.6m (up 0.1% YoY); contributions from the sales of residences and LDRs dipped from S$23.4m in 4QFY14 to S$12.5m in 4QFY15 but this was offset by increased contributions from rental income and also the automotive and tourism segments. Overall, this quarter is broadly within expectations, and adjusted core PATMI and revenues make up 116% and 88% of our full year forecast, respectively. No dividend has been declared.

More units at Star City leased

Yoma reports that 100 out of the 150 units at Star City A5 has been leased out to date, up from 66 units as at end of the last quarter, and total revenue generated from the group’s investment properties increased YoY from S$0.4m to S$2.3m in 4QFY15. At Star City, Building A3 was completed over the quarter, with 100% of its profits now recognized, while the balance of S$6.8m of progress recognition from Building A4 is expected to roll in over the next six months.

Melvyn Pun to take over as CEO

The group also announced that CEO, Andrew Rickards, has resigned and will be replaced by Melvyn Pun, who is the son of major shareholder Serge Pun. Mr Rickards will step down after the AGM on 27 Jul 2015, and will remain as advisor to the company until the end of the year. In addition, Mr JR Ching, formerly the Head of Business Development of the group, will also be appointed CFO. Maintain HOLD with an unchanged fair value estimate of S$0.52.

Source: OCBC Research - 25 May 2015