Yoma’s 1QFY18 revenue grew 46.8% YoY to S$25.8m, while PATMI increased 54.0% YoY to S$2.8m. Healthy top-line contribution was made by the sale of residences and LDRs, on the back of the group’s share of profits from the sales of residences in Galaxy Towers (StarCity Zone C) and additional share of profits in StarCity Zone B following its completion.

The group’s automotive & heavy equipment business also put in a good performance, with a 61.3% YoY growth to S$11.9m, on the back of healthy demand for its New Holland tractors and increased number of leased vehicles. We note that the group’s efforts at diversification remain on track, with the nonreal estate business comprising ~58.2% of revenue.

Management continues to see mild signs of recovery in the Yangon property market, which would hopefully gain further traction with economic development and urbanization.

We maintain our HOLD rating and an unchanged fair value estimate of S$0.54.

Source: OCBC Research - 26 Jul 2017