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7 Things Investors Should Know About Yoma Strategic Holdings Ltd’s Automotive & Heavy Equipment Business

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

Given the complexity of Yoma Strategic’s business, I think it will be useful for investors to have a quick overview of the company’s businesses separately. In earlier articles, I had gone through the Consumer and Real Estate segments. In this article, I will share seven points about the Automotive & Heavy Equipment segment that will help investors better understand what’s going on there [Editor’s note: An article on Yoma Strategic’s Other Investments segment has been published. It can be found here.]:

1. The Automotive & Heavy Equipment segment is made up of three parts, namely, Heavy Equipment, Fleet Leasing, and Passenger & Commercial Vehicle.

2. The Heavy Equipment business is the distributor and aftersales service provider for New Holland-branded tractors and JCB-branded construction equipment in Myanmar.

3. As of 31 March 2017, New Holland tractors has established a market leading position by sales volume in Myanmar, driven by the modernisation of the country’s agriculture industry. In fact, Myanmar is now the largest market for New Holland tractors in South East Asia.

4. The Fleet Leasing business of Yoma Strategic is one of the largest fleet leasing operators in Myanmar. It provides medium- to long-term fleet leasing solutions to customers, which come from various industries such as FMCG (fast-moving consumer goods), telecommunications, and construction.

5. The Passenger & Commercial Vehicles business is a distributor and after sales service provider for international automotive brands in Myanmar. The brands include Mitsubishi Motors, Hino Motors, Volkswagen, and Bridgestone Tyres.

6. In Yoma Strategic’s fiscal year ended 31 March 2017 (FY2017), revenue from the Automotive & Heavy Equipment segment increased by 27.2% to S$38.1 million, driven mainly by growth in the Fleet Leasing business, and sales of New Holland tractors.

7. Here’s a chart showing the breakdown of the Automotive & Heavy Equipment Business’s revenue:

Source: Yoma Strategic FY2017 annual report

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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.