Yoma To Invest More In Myanmar
Yoma Strategic Holdings intends to purchase a 70 percent stake in the land rights of a residential and commercial development in Myanmar for $91 million. The intended purchase, to be made from its affiliated firm, Serge Pun & Associates, will be funded by a 4-for-5 rights issue that could raise as much as $101.3 million. The development, known as Star City, is situated on the outskirts of Yangon and is expected to comprise over 9,000 units of apartments and houses targeted at the middle-class population, as well as shopping and commercial areas. Separately, Yoma filed its 3Q12 financial report card that boasted a $1.3 million net profit, reversing a loss of $462,000 in 2Q12. The turnaround was largely attributed to the jump in revenue from the sales of housing and land development rights. Revenue was up by more than 5 times to $9.83 million as Yoma clinched sales of land development rights equivalent to 43 plots of land during the quarter.
Significance: Yoma currently sees the real estate sector in Myanmar as “buoyant” underpinned by recent political, social and economic reforms in the country. Investors seem unfazed by the rights issue as witnessed by the 19% surge in its share price on 13 January.
ComfortDelGro Turns In Record Full Year Revenue
ComfortDelGro Corporation ended FY11 on a high as it recorded a 3.1 percent rise in net profit to $235.6 million with the increase underpinned by its taxi and rail business. Full year revenue grew 6.4 percent attributable to broad-based growth with increases coming from all business segments. However, revenue would have been even higher had it not been for the negative translation effect of the weaker sterling pound, Chinese yuan and Vietnamese dong. Overseas revenue accounted for 42.2 percent of total revenue. The firm’s global fleet size of buses, taxis and rental vehicles also increased to a record of some 46,300 vehicles. ComfortDelGro managing director and chief executive, Kua Hong Pak said that FY11 was a very challenging year for the firm as the year saw global economic and financial uncertainties. He added that the high fuel costs continued to dampen the firm’s growth but that it did well in growing both its top and bottom lines. The company has proposed a final dividend of $0.033 per share for FY11.
Significance: In view of the slowing domestic growth projected in 2012, ComfortDelGro predicts that bus and rail ridership will grow at a slower pace. Notwithstanding, it expects its taxi business in Singapore, China and Australia to improve.
Boustead Earnings Hit Hard By Thai Floods
Boustead Singapore, an infrastructure engineering services firm, reported that its net profit for 3Q12 dived 58.6 percent to $5.5 million. 3Q12 revenue dipped 25.4 percent to $92/3 million as its real estate solutions division recorded a 51 percent plummet in contributions. The decline in that division was mainly due to the late start-up of projects in hand and an unexpected disruption in the supply chain caused by the flooding of a subcontractor’s fabrication site in Thailand. The plummet was slightly offset by a 14 percent growth in the revenue of its Geo-spatial technology division. Boustead said that the growth was underpinned by strong demand across key markets in Australia and Southeast Asia. Wong Fong Fui, chairman and group chief executive said that although its financial report card appeared dismal for 3Q12, he expects results in 4Q12 to be “significantly stronger”.
Significance: Boustead’s recent announcement of a proposed A$17.5 million ($23.6 million) investment in ASX-listed OM Holdings is expected to yield some dividends upon completion. Separately, Boustead says it is on the lookout for other acquisition and investment opportunities in the region.