A Quick And Simple Overview Of The 6 Ways Yoma Strategic Makes Its Money

Yoma Strategic Holdings Ltd. (SGX: Z59) is a business that is involved in a wide range businesses. They include real estate development, agriculture, construction, tourism, automobiles, and even retail. The conglomerate’s business is mainly focused in Myanmar.

It has been one of the best-performing stocks for the last five years with its share price up by over 300%

Given the strong performance, investors might want to better understand the company and its various business activities.

In this article, we will share a brief overview of the various businesses within Yoma Strategic. There is 6 categories in total.

A quick overview of the businesses:

Real estate – This is the biggest segment of all, accounting for 60% of revenues and the bulk of the profits within the group.

This segment is in the business of developing, selling and leasing of land development rights, residential and commercial properties, providing design and project management services as well as property and estate management services in Myanmar.

Automotive – The automotive and equipment segment is in the business of supplying and leasing of motor vehicles and automotive equipment, including maintenance services.

Example of the brands include Case New Holland, Mitsubishi, Volkswagen and Hino.

Consumer – This segment focuses on operating quick-service restaurants and developing food and beverage distribution and other retail businesses. The highlight here is the KFC brand.

Tourism – The tourism services segment is involved in the operation of hot air balloons in Bagan and related travelling services.

Agriculture – The Group has rights to the Maw Tin estate, which comprises 100,000 acres of contiguous agricultural land in the Ayerwaddy Division of Myanmar. Approximately 3,700 acres of the Maw Tin estate has been earmarked for a robusta coffee plantation.

Rental of properties – This segment relates to the rental of the shopping centre and retail stores in PRC.

Key takeaways:

Firstly, of the six segments, only the property and tourism segments are profitable.

Secondly, given that many of the segments are relatively small (low revenue), we might expect future growth in these segments as Myanmar continues to grow.

In summary, there are quite a number of moving parts. Thus, by breaking down the group and understanding the different segments separately, investors can make a better overall judgement of the long-term prospects of Yoma Strategic.

If you like what you've seen, you can get even more investing insights and analyses from The Motley Fool's weekly investing newsletter Take Stock Singapore. It's FREE, so do check it out here.

Also, like us on Facebook to follow our latest news and articles. The Motley Fool's purpose is to help the world invest, better.

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