BUY S$0.905 STI : 3,253.76

Price Target : S$ 1.02 (Prev S$ 1.08)

Reason for Report : Post-NDR note, results preview

Potential Catalyst: Progress of Landmark project, non-property

growth

DBSV vs Consensus: Above

Analyst

TAN Ai Teng +65 6398 7967

AiTeng@dbsvickers.com

Price Relative

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Jul-09 Jul-10 Jul-11 Jul-12 Jul-13

S$ Relative Index

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

Forecasts and Valuation

FY Mar (S$ m) 2012A 2013A 2014F 2015F

Revenue 39 60 99 139

EBITDA 8 13 30 45

Pre-tax Profit 6 16 29 44

Net Profit 6 14 15 24

Net Pft (Pre Ex.) 6 11 15 24

EPS (S cts) 1.1 1.3 1.3 2.1

EPS Pre Ex. (S cts) 1.1 0.9 1.3 2.1

EPS Gth (%) 117 10 6 54

EPS Gth Pre Ex (%) 142 (17) 42 54

Diluted EPS (S cts) 1.1 1.3 1.3 2.1

Net DPS (S cts) 0.5 0.5 0.5 0.5

BV Per Share (S cts) 25.7 31.3 32.1 33.7

PE (X) 79.1 71.6 67.3 43.8

PE Pre Ex. (X) 79.1 95.5 67.3 43.8

P/Cash Flow (X) 24.9 nm 11.5 19.8

EV/EBITDA (X) 59.5 75.0 35.3 20.2

Net Div Yield (%) 0.6 0.6 0.6 0.6

P/Book Value (X) 3.5 2.9 2.8 2.7

Net Debt/Equity (X) CASH CASH CASH CASH

ROAE (%) 4.5 5.9 4.2 6.3

Earnings Rev (%): (16.3) (5.5)

Consensus EPS (S cts): 1.2 1.6

Other Broker Recs: B: 1 S: 1 H: 1

ICB Industry : Industrials

ICB Sector: Construction & Materials

Principal Business: Yoma Strategic Holdings Ltd. develops real

estate sells private residential properties and designs, constructs

and project manages real estate developments in Myanmar and the

People's Republic of China

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

At A Glance

Issued Capital (m shrs) 1,157

Mkt. Cap (S$m/US$m) 1,047 / 831

Major Shareholders

Pun Serge (%) 41.7

Capital Research (%) 7.1

Aberdeen (%) 5.4

Free Float (%) 45.8

Avg. Daily Vol.(‘000) 17,673

DBS Group Research . Equity 24 Jul 2013

Singapore Company Focus

Yoma Strategic Holdings

Bloomberg: YOMA SP EQUITY | Reuters: YOMA.SI Refer to important disclosures at the end of this report

Long term commitment

•

positioned to benefit from Myanmar’s opening

but look long termInvestors unanimously agree Yoma is best

•

FY14F/15F earnings by 16%/6% as higher costs

would squeeze margins and growthProperty sales remain healthy but we cut

•

maintain BUY with lower TP of S$1.02No change to LT positive view on Yoma

Key concerns.

Hong Kong, meeting 13 fund managers. Investors who are

keen on Myanmar opening up mostly agreed that Yoma is

a direct and liquid access to this frontier market.

Discussions centered on Yoma’s property business, with

key concerns being sustainability of demand and pricing,

Yoma’s funding needs and its ability to execute an

aggressive and diversified expansion plan. Also, the share

price has more than doubled within the year and investors

are apprehensive of entering at current levels, and asked

about possible re-rating catalysts.We hosted Yoma on a two-day NDR in

Property sales still positive but higher expenses

would squeeze growth.

Yoma’s earnings growth will be reined in by slow

construction in 1H14 and higher staff costs due to several

managerial appointments. We raised SGA costs by 30-

40% for FY14F/15F and cut net earnings by 16%/6%. For

1QFY14, we expect S$2.8m net profit and S$24m sales.

Yoma is due to report results at end July.Despite healthy property sales,

Maintain BUY progress of Landmark, nonproperty

developments are imminent catalysts.

stock has quietened down after its failed telco bid but

Yoma’s position is intact. It will continue to benefit from

the larger SPA Group which has a non-sanction status and

substantial exposure to quality properties which are sought

after by incoming foreigners and Yangon’s growing

populationThe