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3 Slides Investors Should See From Yoma Strategic Holdings Ltd’s Latest Earnings Presentation

Yoma Strategic Holdings Ltd (SGX: Z59) is a conglomerate that focuses on Myanmar. It has business interests in a wide variety of sectors, such as real estate development, agriculture, tourism, vehicle distribution, and even food & beverage retail.

Last week, the company announced the results for its fiscal year ended 31 March 2017 (FY2017) and held an earnings presentation. Here are three important slides from the presentation investors may want to know.

Revenue structure

The slide below shows the change in Yoma Strategic’s revenue structure since FY2014:


Source: Yoma Strategic FY2017 earnings presentation

The company has a target to have at least 50% of its revenue come from non-real estate businesses by 2020. As the slide shows, Yoma Strategic is currently on track to meeting its aim. In FY2017, 47% of the company’s revenue came from non-real estate businesses.

Such diversification should improve the overall sustainability of Yoma Strategic’s income, since the real estate industry tends to be cyclical in nature.

The KFC business

As part of Yoma Strategic’s F&B retail business, the company holds the master franchise for KFC restaurants in Myanmar. The slide below shows the progress and future plans of the company’s KFC business:


Source: Yoma Strategic FY2017 earnings presentation

KFC restaurants look to be a business that would become increasingly important to Yoma Strategic going forward. The company already has 12 stores in the country after opening the first one less than two years ago in July 2015. It has a target of having 22 stores in total in Myanmar by March 2018.

This business is definitely an area worth focusing on for investors. Even when Yoma Strategic reaches 22 KFC restaurants, there is likely to still be big growth opportunities ahead.

Other income streams

Here’s a slide showing Yoma Strategic’s Other Income in FY2017 and FY2016:


Source: Yoma Strategic FY2017 earnings presentation

Other Income was very significant to the overall profitability of Yoma Strategic in FY2016 and FY2017. To put things into perspective, Other Income was higher than the company’s gross profit in both years.

The majority of Other Income has so far been due to fair value gains on the company’s investment properties and financial assets (such as the company’s equity investment in telecommunication towers).

It’s worth noting that the fair value gains are generally non-recurring in nature. So, Yoma Strategic’s future profitability may face significant downward pressure in the future.

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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 contributor Lawrence Nga doesn’t own shares in any companies mentioned.