Company Name: YOMA STRATEGIC HOLDINGS LTD
| Research House: DBS Vickers | Price Call: BUY | Target Price: 0.65 |
DBS Vickers raised its target price for Myanmar property firm Yoma Strategic Holdings to $0.65 from $0.60, and kept its ‘buy’ rating, citing higher selling prices from a development project and better margins.
By 10:36 a.m., Yoma shares were flat at S$0.575, and have more than tripled in value so far this year, compared to the FTSE ST Industrials Index’s 24.8% gain.
Yoma posted a net loss of $4.12 million in July-September, compared to a net profit of $1.39 million a year earlier. Its core profits were below DBS’ expectations, but its margins, property sales and prices continue to rise, DBS said.
Although only 9% of the earnings from Yoma’s residential and commercial development in Myanmar, Star City, has been recognised, DBS expects this to rise going forward, helped by improved bookings and higher estimated average selling price.
“We believe as reforms in Myanmar progress and when financing is made available, the group should be able to raise ASPs in future,” said DBS, which estimates a 10% increase in ASP a year from 2014 onwards.
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