Wednesday, September 5, 2012

OCBC initiates Yoma with 'buy' rating



OCBC Investment Research initiated coverage of Yoma Strategic Holdings, a Singapore-listed property developer in Myanmar, with a ‘buy’ rating and a $0.45 target price.
   
stock has more than doubled so far this year, versus a 16.5% gain in the FT ST Small Cap Index.

OCBC said Yoma is the only publicly listed company in the world today providing almost pure exposure to Myanmar with an average daily liquidity over US$5 million ($6.2 million).

“The Myanmar economy is a key driver of Yoma’s business outlook and, given the political will shown by President Thein Sein so far, we believe the process of economic liberalization will likely be meaningful and sustainable,” OCBC said.

Yoma is also an affiliate of the SPA group, an established conglomerate in Myanmar with a track record of acquiring and developing large residential projects, OCBC said.

This gives Yoma a strong competitive edge and a first mover advantage in the Myanmar real estate sector, OCBC noted, adding that Yoma is able to access capital markets and acquire attractive assets from SPA.


 

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