Yoma’s 2QFY18 revenue rose 32.9% YoY to S$33.1m, driven largely by growth in its Automotive & Heavy Equipment and Consumer businesses, which together contributed 54% of total revenue. Notably, the group’s Automotive & Heavy Equipment business grew 109.9% YoY to S$14.6m on the back of healthy sales of its New Holland tractors.

The group’s Real Estate business was stable, with revenue from the sales of residences and land development rights driven primarily by StarCity. Real Estate rental and services revenue was similar to that of 2QFY17, with the group starting to recognize leasing revenue from the two Dulwich International Schools in its investment properties portfolio.

Notwithstanding the above, PATMI fell 56.8% YoY to S$3.7m due largely to the absence of a S$14.7m fair value gain on the telecommunications towers investment which was recognized in 2QFY17.

Pending an analyst briefing later, we put our fair value estimate of S$0.58 under review. Maintain HOLD.

Source: OCBC Research - 27 Oct 2017