SINGAPORE (Nov 8): Yoma Strategic Holdings, the Myanmar-focused business conglomerate, announced 2Q17 earnings rose more than 28 times to $8.5 million from $0.3 million the year before on higher revenue across all three of its core businesses comprising real estate, automotive & equipment, and consumer.

Revenue rose 25.2% to $24.9 million from $19.9 million in 2Q16.

The bulk of Yoma’s revenue was mainly due driven by its real estate business, which grew by 25.5% to $15.2 million in 2Q17. This was largely attributable to the sales of residences and land development rights (LDRs) which increased 26.1% to $9.9 million, driven by sales at Pun Hlaing Estate (PHE).

Rental revenue generated from investment properties also increased by 24.4% to $5.4 million, with high occupancy rates achieved by Star Residences at Star City and The Residence at Pun Hlaing.

The group’s automotive segment saw a 9.1% increase to $7 million as it expanded its fleet-leasing portfolio to 491 vehicles, while its Case New Holland tractor business, which contributed to 75.6% of automotive revenue, saw healthy demand.

Yoma’s consumer business, which is driven by its KFC stores, reported nearly double growth in revenue from $1.4 million in 2Q16 to $2.7 million in 2Q17, This was mainly due to incremental revenues from new KFC store openings.

Other income increased to $16.3 million in 2Q17, mainly driven by the fair value gain of $14.7 million from the group’s telecommunications towers investment.

Yoma is in the midst of spinning off its tourism-related business as part of a reverse take-over (RTO) of SHC Capital Asia (SHC), and today announced it has exercised its put option to sell its 12.5% stake in this investment for US$35 million ($49 million) to Edotco Investments (Labuan).

<i><strong>(See also: <a href="http://www.theedgemarkets.com.sg/sg/article/yoma-strategic-list-71-mil-worth-tourism-related-assets-rto-shc-capital-asia">Yoma Strategic to list $71 mil in tourism-related assets via RTO of SHC Capital Asia</a>)</strong></i>

Administrative expenses increased slightly by 4.8% to $13 million for the quarter.

“The decision to dispose half of its holdings and retain the remaining 12.5% interest in the telecommunications towers business, as well as the announced plans to spin-off our tourism-related businesses into a listed company, allow us to strike a balance between the positive outlook of the telecommunications and tourism businesses and the group’s long-term strategy to focus on growing its core businesses,” says CEO Melvyn Pun in a Tuesday release.

“We believe that Yoma Strategic is well-positioned to continue its growth trajectory, in tandem with [Myanmar’s] positive developments. We will maintain our focus on growing our core businesses to be the engines of growth for the group and will continue to monetise some non-core assets to generate funds for growth,” he adds.

Shares of Yoma closed 1 cent higher at 60 cents on Monday.

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