Company Name: YOMA STRATEGIC HOLDINGS LTD
| Research House: DBS Vickers | Price Call: BUY | Target Price: 0.60 |
DBS Vickers starts Yoma Strategic at Buy with a $0.60 target, calling it a direct proxy to Myanmar’s booming real-estate sector; “earnings growth from property sales is strong and would get stronger
given limited supply in the market against overwhelming demand.”
It notes prices have risen 20% in the past nine months, amid a dearth of new developments over the past few decades. It expects Yoma’s value to continue to increase amid the government’s steady stream of
pro-business policy reforms, which should attract even more foreigners in search of business opportunities in Myanmar.
It tips earnings could double this year amid strong home-price increases and take-up rates. Land acquisitions, including a prime downtown Yangon site, are likely to expand RNAV, while its ability to forge strategic partnerships with foreign players, such as the recent JV with Parkson, bode well for long-term recurrent earnings, DBSV says; “we believe there is room for the stock to re-rate higher as positive sentiment on Myanmar continues to surge.”
The stock is up 6.1% at $0.525 in strong volume of around 4% of shares changing hands. It is up nearly 200% year-to-date.
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