Hot stock: Yoma rises over 9% on trading volume surge

SHARES of Yoma Strategic advanced steadily to reach its highest level in the year amid heavier-than-usual trading activity on Thursday (Jul 4) morning.

As at 9.30 am, the Myanmar-focused conglomerate rose S$0.015 or 9.6 per cent to S$0.172 with 43.2 million securities transacted. The last time it traded at such levels was April 2022.

Shares of Yoma later fell to S$0.156 as at 3.04 pm, down S$0.001 or 0.6 per cent.

The counter then inched up to close flat at S$0.157. It was the most heavily traded counter by volume, with over 161.1 million shares changing hands.

No married deals were recorded, based on ShareInvestor data.

Yoma’s stock was actively traded this week – about 142.5 million Yoma shares were transacted on Wednesday, 46.6 million shares on Tuesday, and 60.1 million on Monday.

Yoma’s last public announcement was filed on Jun 28 regarding its plans to acquire a remaining 20 per cent interest in its subsidiary, Yoma Fleet, for S$18.5 million from Tokyo Century Asia.

The consideration price represents an overall valuation of about US$68.4 million for Yoma Fleet.

Some 137 million new ordinary shares of Yoma Strategic will be issued to Tokyo Century Asia at an issue price of S$0.135 per consideration share.

Assuming that the proposed acquisition had been carried out at the start of the 2024 financial year, the company said it expects net profit attributable to shareholders – after adjusting for perpetual securities distribution – to amount to US$17.9 million, up from US$17.8 million.

The company estimated that its weighted average number of shares would rise to 2.4 billion, while earnings per share would fall to 0.75 US cent from 0.8 cent.

Phillip Securities’ head of research Paul Chew believes having Tokyo Century Asia as a new substantial shareholder will provide Yoma opportunities for deeper collaboration and access to funding.

“Yoma Fleet’s growth plans include expanding the operating fleet, especially heavy machines, increasing lease rates, and introducing new synergy with Wave Money,” he said in a non-rated report on Monday.

“We expect an area of collaboration will be with Wave Money... Lenders, such as Yoma Fleet, that join the platform can provide loans to users with the appropriate credit scores.”

Chew expects Yoma Fleet to expand its operating fleet, particularly through the second-hand market. The analyst also sees potential upside to leasing rates, in view of shrinking available credit financing due to fewer banks and microfinance operators.