Yoma’s 3Q18 revenue grew 0.1% YoY to S$24.1m, with the Automotive & Heavy Equipment and Consumer businesses together contributing 74.0% of the total revenue. The Group’s Automotive & Heavy Equipment business saw a 36.3% YoY increase in revenue to S$13.9m, driven by significant growth in the New Holland tractors business.

Notably the Group’s Real Estate development business witnessed a significant drop in revenue from S$6.1m in 3Q17 to S$1.4m in 3Q18. This was mainly due to the decision to keep some units in StarCity Zone C for long-term rental while redesigning other units to meet the demand for smaller units.

Net other income rose 111.2% YoY to S$27.2m, due largely to the fair value and disposal gain from the completion of the disposal of the Group’s tourism related businesses. All-in, PATMI rose from S$334k in 3Q17 to S$16.8m in 3Q18.

We put our Hold rating and fair value estimate of S$0.55 under review.

Source: OCBC Research - 6 Feb 2018