Compiled by Kenneth Lim, The Business Times
YOMA STRATEGIC HOLDINGS | BUY
TARGET PRICE: $0.78
MARCH 28 CLOSE: $0.62
RHB RESEARCH, MARCH 28
Yoma offers investors the best proxy to invest in Myanmar with a strong and diversified business model. Recent quarterly results have been a mixed bag, reflecting a sluggish real estate market caused by uncertainty over new regulations governing foreign buying.
However, we see these as hiccups in a long structural uptrend driven by urbanisation, foreign direct investments and financial sector liberalisation. Notably, Yoma has scaled up its consumer and automotive businesses well.
YANGZIJIANG SHIPBUILDING (HOLDINGS) | HOLD
TARGET PRICE: $0.96
MARCH 28 CLOSE: $1.13
OCBC INVESTMENT RESEARCH, MARCH 28
Yangzijiang Shipbuilding (YZJ) recently announced that one of its subsidiaries had subscribed for 30 per cent equity interest in Jiangsu Nantong Yanhai Emerging Industrial Investment Fund with an authorised share capital of up to 300 million yuan (S$61 million), thereby making Nantong Yanhai an associate.
The operating term of the fund is seven years, and its core business is related to industrial investment, venture investment and equity investment in small and medium-sized privately-owned enterprises in emerging industries such as new materials, energy conservation and environmental protection, advanced manufacturing technology, healthcare and innovative consumption business.
In January, a unit of YZJ also subscribed for a 32.8 per cent equity interest in Wuxi Jinrui Zhonghe Investment Enterprise for 196.8 million yuan.
The core business of Jinrui Zhonghe is related to investment holding and the move was meant to enhance management's expertise in cash redeployment. YZJ still seems intent on parking money in investment funds.
JUMBO GROUP | HOLD
TARGET PRICE: $0.67
MARCH 28 CLOSE: $0.695
UOB KAY HIAN RESEARCH, MARCH 28
Jumbo announced a joint venture to open the first Jumbo seafood restaurant in Beijing following the announcement of the group's franchise agreement in Vietnam.
This is Jumbo's second foray into overseas franchising after its first venture in Indonesia failed to find traction. If Jumbo can find the right partners this time round, this could be the start of the group becoming a truly regional brand.
Maintain "hold" but with a slightly higher discounted cash flow-based target price of $0.67. Suggested entry price: $0.61.
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