Thursday, February 4, 2016

Yoma Strategic Holdings reports earnings

Yoma Strategic Holdings is the Singapore based holding company that has its operations in Myanmar. It recently reported third quarter earnings:

Net Profit attributable to shareholders up 223% to S$25.2 million
Non-real estate business revenue grew by 260%                                                                   Telecom towers investment recorded significant fair value gain                                                       To open up to 12 KFC stores by March 2017, quadrupling current store count

The company has holdings in various businesses in Myanmar such as; real estate development, vehicle leasing, KFC franchisee, tourist operations, cell towers, etc.. The company will have lumpy sales and earnings because of the timing of real estate sales. Nevertheless, Myanmar has excellent prospects long term starting from a low base and having a young population.

Yoma has been in Myanmar for many years and is well connected inside the country. Because of this they will have first crack at working with multi national companies wanting to enter the Myanmar market. An example is the fact they are the New Holland tractor distributor and the KFC franchisee.

The thesis is simple; the economy will grow significantly over the next several decades and Yoma should capture a growing portion of that growth. Rinse and repeat. This is a long term investment you buy and put in a coffee can and open up 10 years later.

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