Yoma Strategic Holdings Ltd (SGX: Z59) offers investors exposure to the fast-growing Myanmar economy. Myanmar, with a population of 53.3 million, has an economy that is expected to increase by 6.6% in 2019 and 6.8% in 2020. Singapore-listed Yoma Strategic Holdings has a wide variety of businesses that could potentially benefit from the fast-expanding economy. With that, here’s a look at its four core business pillars.
Yoma Land is the conglomerate’s real estate arm, which includes both real estate development, real estate services, and rental income. Yoma Land holds one of the largest land banks in the country and currently has three large-scale property developments comprised of two residential projects and mixed-use development.
In addition, Yoma Land owns investment properties that provide recurring rental income.
In its financial year ended 31 March 2019, Yoma Land contributed US$56.3 million, or 55.8%, of the group’s total revenue.
The group’s automotive segment deals with the importation, distribution, and after-sales servicing of commercial and passenger vehicles, as well as agriculture and construction equipment.
Brands that Yoma Motors distributes in Myanmar include New Holland, Case Agriculture, and JCB Construction Equipment. It also introduced the rental of JCB construction equipment, New Holland tractors, and FPT generators in 2018.
In the year ended 31 March 2019, Yoma motors contributed US$22.74 million, or 22.6%, of the group’s top line.
The group also has an F&B arm that comprises a chain of restaurants, bottling, and distribution of beverages and provision of food wholesale and logistics services.
The bulk of revenue from this segment comes from its chain of KFC restaurants.
The group opened the first KFC in 2015 and now has 33 KFC restaurants nationwide, up from 22 in March 2018. The group added Little Sheep Hot Pot and Auntie Anne’s to its suite of restaurant brands in March and April 2019, respectively.
In the year ended March 2019, the F&B segment contributed US$14.57 million, or 14.5%, of the group’s total revenue.
Yoma Financial Services
Yoma has set its sights on helping the more than 53 million unbanked people in Myanmar gain access to financial services.
The group owns a stake in Wave Money and Yoma Fleet. Yoma Fleet is an automotive and equipment leasing and hire purchase transactions platform, while Wave Money serves as the payments, distribution, and data nucleus of the platform.
Only Yoma Fleet’s revenue is recognised in the group’s consolidated statement. In the year ended 31 March, Yoma Fleet generated US$6.26 million, or 6.2%, of the group’s total revenue.
Notably, its fleet size increased by 61.9% year on year to 1,166 vehicles. Wave Money has also grown at a staggering pace as its revenue increased by 323% in the 12 months ended 31 March 2019.
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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 Jeremy Chia doesn’t own shares in any companies mentioned.