Brokers' take

Yoma Strategic Holdings | Buy DBS Group Research, Feb 13 Target price: S$0.80 Feb 13 close: S$0.59

We continue to like Yoma Strategic Holdings on the back of an improved operating outlook post the new government in Myanmar. We believe the consistent delivery of the group's real estate sales, coupled with the continued scaling up of its operations for its non-real estate segments, will represent upside to earnings and target price.

Nine-month 2017 net profit fell 60 per cent year-on-year to S$11 million on net currency translation losses of S$4 million, mitigated by higher investment gains (17 per cent year-on-year). Excluding currency losses, the estimated net profit fell 39 per cent year-on-year to S$14 million, 48 per cent of our FY17 estimates. Key updates: i) Yoma opened four new KFC stores in Q3 2017, on track to meet FY17 forecast target, ii) Landmark development has been approved by Myanmar Investment Commission (MIC), and iii) the government has chosen Yoma to facilitate the purchase of 600 New Holland tractors.