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Singapore’s Flyer Of The Week: Yoma Strategic Holdings

YomaAs the global elite congregate in Nay Pyi Taw for their World Economic Forum, this week’s Singapore’s “Flyer” of the Week spotlight falls on the Myanmar-focussed Yoma Strategic Holdings (SGX: Z59).

Shares in the property-to-farming company are up 12% to $0.95 this week, which values the business at a smidgen above S$1 billion. The company recently posted a 150% increase in full-year profits to S$16m, thanks to a 54% jump in revenues to S$60m.

Yoma has its investing fingers in a number of portfolio pies. It owns real estate, notably FMI City, which is Myanmar’s first gated community. It owns a golf course in North-West Yangon and it also owns a mixed-use apartment and shopping complex in Thanlyin Township.

Yoma is also involved in agriculture. It farms Jatropha Curcas, which produces seeds that can be processed into valuable biofuel.  It also grows black pepper and is looking at cultivating crops such as rubber, eucalyptus and other spices.

But if all that wasn’t enough to keep the company busy, it also imports light trucks into China through a strategic alliance with Dongfeng Automobile Company of China. Later on, Yoma plans to set up an assembly plant to manufacture the Chinese trucks in Myanmar.

Recently, Myanmar has attracted attention from companies such as Coca-Cola (NYSE: KO) and Starbucks (Nasdaq: SBUX), and also from Visa (NYSE: V) and SingTel (SGX: Z74). More could follow, especially if Myanmar continues with its political and economic reforms.

After five decades of military rule, the country, which has been dubbed Asia’s final frontier, is ready to follow others that include Vietnam and Cambodia, and open up its market to the world.

The road to economic rehabilitation won’t be easy though. But for the right company in the right place at the right time, it could be lucrative.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore Director David Kuo doesn’t own shares in any companies mentioned.

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