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10 Things Investors Should Know About Yoma Strategic Holdings Ltd’s Latest Full-Year Earnings Update

Last week, Yoma Strategic Holdings Ltd (SGX: Z59) released its full year results for its fiscal year ended 31 March 2018 (FY2018). As a quick introduction, Yoma Strategic 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.

Here are 10 things investors should know about Yoma Strategic’s latest results:

1. Revenue for the year was down 6.6% to S$107.8 million.

2. Similarly, gross profit declined by 12.9% to S$39.4 million compared to a year ago, mainly due to the lower revenue, and a higher proportion of revenue from the Automotive & Heavy Equipment segment, which has a lower gross profit margin profile as compared to the conglomerate’s real estate segment.

3. Net profit attributable to shareholders plunged by 25.7 % to S$26.6 million mainly due to the lower top line, lower other income, and higher administrative costs.

4. For the year, Yoma Strategic generated a negative S$0.6 million in operating cash flow, down from a positive S$65.4 million seen a year ago.

5. As of 31 March 2018, Yoma Strategic had S$33.4 million in cash and S$243.5 million in debt.

6. Revenue from the Automotive & Heavy Equipment business increased by 33.8% to S$51.0 million in FY2018, mainly due to the increase in sales of tractors (from 692 units in FY2017 to 911 units) and construction equipment. Higher vehicle leasing and rental activity also contributed.

7. The addition of new stores resulted in revenue from the conglomerate’s KFC restaurant business (this falls under the Consumer category) jumping by 30.4% to S$14.2 million. The conglomerate had 22 KFC stores as of 31 March 2018, compared to 12 a year ago.

8. Revenue from Yoma Strategic’s real estate-related businesses declined by 35.8% to S$ 42.6 million mainly due to a change in the company’s sales strategy that resulted in fewer unit sales. On the change in sales strategy, Yoma Strategic decided to keep certain units in Zone C of its StarCity development for long-term rental income, and redesigned other units “to cater to the demand for smaller units.”

9. The company had proposed a final cash dividend of 0.25 Singapore cents per share for FY2018; there was no final dividend in FY2017.

10. Serge Pun, Yoma Strategic’s executive chairman shared the following comments in the conglomerate’s latest earnings update:

“Moving ahead, we will continue to accelerate the Group’s growth by scaling up our key business pillars and establishing a nationwide presence across Myanmar. The expansion of our Consumer and Financial Services platforms, together with our Real Estate and Automotive & Heavy Equipment businesses, will allow us to maintain our competitive edge as the country continues on its path of economic development.”

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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