YOMA STRATEGIC HOLDINGS | HOLD
TARGET PRICE: $0.54
MAY 25 CLOSE: $0.60
OCBC Investment Research, May 25
Yoma's Q4 FY17 price after tax and minority interests increased to $24.1 million, up from $8.9 million in the same period last year mostly due to higher fair value gains on investment properties and improved gross profit margins driven by the sales of residences and land development rights (LDRs) in Q4 FY17 (as compared to mostly sale of buyback units in StarCity in Q4 FY16).
In terms of the topline, FY2017 revenues increased 11 per cent to $124.2 million. Notably, about 47 per cent of revenues were attributed to Yoma's non real estate businesses, which points to management's diversification efforts bearing fruit.
Looking ahead, while the property market in Myanmar saw some softness over the year, management reports that the Yangon property market is showing mild signs of recovery and they remain cautiously optimistic about the sector.
In addition, the group will be opening its first KFC store in Mandalay in June 2017 and will increase its store count nationwide to 22 by the end of FY2018. A final cash dividend of 0.25 cents per share has been proposed.
GEO ENERGY RESOURCES | BUY
TARGET PRICE: $0.45
MAY 25 CLOSE: $0.27
Phillip Securities, May 24
Revenue and net profit exceeded our expectation mainly due to higher average selling price (ASP). Our forecast ASP was US$37/tonne in FY17, and average Indonesian Coal Index 4,200 (gross as received) price was US$43/tonne.
We maintain the unchanged forecast of 8.5 million tonnes of coal sales volume with US$37/tonne ASP in FY17.
Due to the probably early redemption of medium-term notes, the mild drop in finance costs will improve the net profit slightly from previous forecast of US$41 million (S$56.7 million) to updated US$42 million.
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