Yoma sinks into the red in 1Q19 with $15.9 mil loss despite revenue growth

Yoma sinks into the red in 1Q19 with $15.9 mil loss despite revenue growth

By: 
Michelle Zhu
24/07/18, 07:39 am

SINGAPORE (July 24): Yoma Strategic Holdings reported a loss of $15.9 million for 1Q19 compared to earnings of $2.8 million a year ago on higher finance expenses, lower other income, as well as greater share of losses of joint ventures and associated companies.

Revenue for the quarter grew 13.9% to $29.4 million from $25.8 million previously, with high contributions across all three of its core land, F&B and financial services businesses, thus helping to offset a slower performance in Yoma’s motors business.

Gross profit margin however fell to 35.1% on year from 40.6% in 1Q18, as the previous year’s real estate development revenue comprised mainly share of profits in StarCity Zone C and Zone B with minimal costs.

Net other income fell 35.4% a year ago to $5.8 million from $8.9 million previously on the back of currency translation losses of $1.3 million, as compared to gains of $0.2 million in 1Q18.

Share of losses of associated companies and joint ventures amounted to $3.2 million, primarily attributed to losses incurred by Memories Group and Access Myanmar Distribution Company.

Administrative expenses grew by 37.6% to $17 million compared to $12.3 million a year ago, mainly due to a higher number of KFC stores and New Holland, JCB branches, as well as expenses incurred for the Yoma Central project.

Finance expenses grew eightfold to $15.6 million compared to just $1.9 million a year ago, due to currency translation losses -- a result of the strengthening USD against the SGD and Kyat -- and interest expenses on borrowings on the back of rising interest rates.

Going forward, the group expects its real estate revenue to continue its improvement in the coming year, with the residual revenue recognition from sold units at StarCity Galaxy Towers Two and Four complemented by full recognition from additional sales.

It also says sales at The Peninsula Residences Yangon has been encouraging, with seven units sold recently in 1Q19 and another three units sold in July this year.

“We remain optimistic with the business prospects ahead and believe Yoma Strategic is well-positioned for long-term growth, in tandem with the wider positive economic developments in the country,” says executive chairman Serge Pun.

Shares in Yoma closed 1.2% higher at 42 cents on Monday.

CapitaLand Mall Trust upgraded to 'buy' by UOB on Jurong Lake District plans, Funan launch

SINGAPORE (May 27): CapitaLand Mall Trust will benefit from the development of Jurong Lake District (JLD) as it has three retail malls located within Jurong Gateway, says UOB KayHian. See: CapitaLand Mall Trust declares 3.6% higher DPU of 2.88 cents on higher income IMM Building, JCube and Westgate, which in total accounts for 20% of CMT’s portfolio valuation, are located within Jurong Gateway and adjacent to Jurong East MRT station. Meanwhile, Funan, which is about 90% pre-committed for retail space and 98% pre-committed for office space, is scheduled to open next month. See als....
Read More >>

Time to 'buy' MindChamps as growth initiatives bear fruit: RHB

SINGAPORE (May 27): RHB Research continues to keep MindChamps Preschool at “buy” at a lower target price of 83 cents compared to 87 cents previously, indicating a 26% upside plus 2.2% yield. The reduced target price comes after cutting FY19-20F earnings by 7% and 11%, respectively, upon management indications that adopting SFRS 16 has negatively impacted the group’s 1Q19 pre-tax profit by about $90 million or -15%. In a May 17 report, analyst Juliana Cai says she nonetheless remains positive on MindChamps as she expects the group to start reaping returns from its investments as its....
Read More >>

Ascendas-Singbridge establishes co-innovation lab with IMDA & Enterprise Singapore

SINGAPORE (May 27): Singapore’s smart nation ambitions have been further bolstered by a new partnership between Ascendas-Singbridge, Infocomm Development Authority of Singapore (IMDA) and Enterprise Singapore (ESG) to form the Smart Urban Co-Innovation Lab. All three parties are looking to have a total of 30 co-innovation projects come out from the lab, which is expected to be launched at the end of the year as the first developer-led lab in Southeast Asia. This announcement follows last year’s call for innovation led by IMDA, Ascendas and JTC. Ascendas has published 12 probl....
Read More >>