Thursday, May 19, 2016

Yoma Strategic Holdings reports earnings


Yoma is the Singapore based company that has all its business activities situated in the fast growing country of Myanmar. The company has interests in real estate development, tourism, agricultural equipment and automotive, fast food, and cell tower leasing. The company is basically a conglomerate that is invested in various industries in Myanmar.

As Myanmar is one of the fasting growing economies in SE Asia the investment thesis is buy Yoma and ride the wave as Myanmar emerges from 50 years of military controlled socialism. As the economy grows Yoma is positioned to capture an ever growing amount of cash from its various businesses.

Another reason to like Yoma is that the founder Serge Pun was doing business in Myanmar for years before sanctions were lifted and has established relationships with the various decision makers and players in the country.

This is one of my favorite long term investments and this is one you just buy and hold for 10-20 years and it will end up being worth quite a bit more than you paid for it.

The sales and earnings are lumpy due to the real estate business. However, the non-real estate businesses continue to grow very nicely (up over 159% from last year albeit for a small base). as time goes on I expect the real estate business to become a smaller and smaller part of the overall groups sales and earnings. In addition the company just initiated a dividend which is great news for investors. If you are interested you can go to the company website and do your own due diligence.

1 comment:

Dustin KHG said...

They organize a 3-days shareholder trip every year around March. I attended one back in 2015. For those who have never been to Yangon it is a good opportunity to visit the city and get some insights of the company.

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