BUY S$0.96 STI : 3,104.40

Price Target : 12-Month S$ 1.08

Analyst

TAN Ai Teng +65 6398 7967

AiTeng@dbsvickers.com

Price Relative

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S$ Relative Index

Yoma Strategic Holdings (LHS) Relative STI INDEX (RHS)

Forecasts and Valuation

FY Mar (S$ m) 2011A 2012A 2013A 2014F

Revenue 11 39 60 99

EBITDA 3 8 13 37

Pre-tax Profit 2 6 16 37

Net Profit 3 6 14 18

Net Pft (Pre Ex.) 3 6 11 18

EPS (S cts) 0.5 1.1 1.3 1.6

EPS Pre Ex. (S cts) 0.5 1.1 0.9 1.6

EPS Gth (%) 419 117 10 27

EPS Gth Pre Ex (%) 365 142 (17) 70

Diluted EPS (S cts) 0.5 1.1 1.3 1.6

Net DPS (S cts) 0.0 0.5 0.5 0.5

BV Per Share (S cts) 24.7 25.7 31.3 32.4

PE (X) 181.6 83.9 75.9 59.7

PE Pre Ex. (X) 202.5 83.9 101.3 59.7

P/Cash Flow (X) 493.7 26.4 nm 11.8

EV/EBITDA (X) 146.8 63.2 79.7 30.0

Net Div Yield (%) 0.0 0.5 0.5 0.5

P/Book Value (X) 3.9 3.7 3.1 3.0

Net Debt/Equity (X) 0.0 CASH CASH CASH

ROAE (%) 2.2 4.5 5.9 5.0

Source of all data: Company, DBS Vickers, Bloomberg Finance L.P

Myanmar delays telco licenses

• Postponed until new telco law is passed

• Bids may require local participation

•

raise concerns on government’s ability to executeHopefully, delay will not be long drawn as it could

•

S$1.08 TPNo earnings impact on Yoma Maintain BUY and

Myanmar has delayed award of the two telco licenses

scheduled to be announced today.

Parliament voted to delay awarding the licenses until a new

telecommunications law governing the industry is passed.

Members of the Parliament agreed that the " industry risked

being monopolised" if the winners of the

telecommunications license were announced before a new

telecommunications law is passed in the country.

In addition, it was also proposed that only foreign

companies with a local joint-venture partner should be

granted a telecommunications license, although it is unclear

whether this new rule will be adopted. Some of the foreign

bidders, including a consortium of Orange and Japan's

Marubeni Corp. and Bharti Airtel, are competing for a

license without a local partner.

The Telecommunications Operator Tender Evaluation and

Selection Committee is the independent body that oversees

the bid but members of Parliament said that the decision

from its lower house would override the authority of the

Telecommunications Operator Tender Evaluation and

Selection Committee. Hence, it is now unclear when the

winners will be announced.

Although bureaucratic delays are common in frontier

markets, we hope that the delay will not be for too long as

these developments - telecom networks and airports - are

the new government's first attempts to revamp the country.

It is crucial that the government shows that they are able to

plan and execute the country's development forward.Yesterday, Myanmar’s

No earnings impact on Yoma

earlier reports, we do not expect and have not imputed into

our forecast any earnings impact from this telco bid.

Maintain BUY and S$1.08 TP.. As mentioned in our