Yoma’s 1Q19 revenue rose 13.9% YoY to S$29.4m, with the real estate development business increasing 63.7% YoY to S$10.2m, mainly from sales of completed houses and land plots in Pun Hlaing Estate. The group also recognized revenue from the sale of uncompleted development properties over the construction period, in Pun Hlaing Estate, StarCity Zone C and Yoma Central.

Revenue from the group’s automotive & heavy equipment segment fell 26.9% YoY to S$7.51m, due mainly to the delay in buyers taking delivery of the second 500-tractor order secured under the Ministry of Agriculture and Irrigation’s nationwide mechanization programme.

The group recorded a currency translation loss of ~S$10.1m on its borrowings on the back of a strengthening USD, in which the majority of its borrowings are denominated.

Share of losses of associated companies and JVs came up to S$3.2m in the quarter, which was primarily due to losses incurred by Memories Group Limited and Access Myanmar Distribution Company Limited.

We maintain our BUY rating, but place our fair value of S$0.51 under review.

Source: OCBC Research - 24 Jul 2018