Yoma's profits down 3.5% to $35.9m

Yoma’s non-real estate businesses increased by 31%.

Yoma Strategic Holding experienced a growth in revenue and gross profits by 18% and 61% to S$53.8m and S$21.6m respectively in its 4Q17 results. This surpasses expectations on the back of fair value gains.

DBS reported Yoma's FY17 revenue and gross profit came in 11% and 23% higher y-o-y to S$124.2m and S$50.1m respectively. However, PATMI was 3.5% lower y-o-y to S$35.9m.

Yoma’s non-real estate businesses increased by 31% y-o-y while real estate businesses increased by 10%. Non-real estate businesses contributed c.40% of revenues for the quarter. New Holland Tractor and it KFC franchise will continue to drive profitability and growth in FY18F.

Star City and Pun Hlaing Estate continue to attract interest and saw good sales in FY17. The reconfiguration of Star City Galaxy Towers to 1,038 units (vs 954 units) is completed and expected to capitalise on the trend for smaller units aimed at an increasing demand for rent. Along with this, targeted official launch of Peninsula Residences in 2QFY18. Phase 1 of the project is expected to garner strong interest.

Here’s more from DBS:

We are seeing a strong rebound in operating performance as most of its underlying businesses are doing well. Most importantly, 4Q17 gross profit of S$21.6m covers the group’s overheads of c.S$14.3m, implying that operating performance has achieved a sustainable level. For the quarter, despite stripping out the fair value gains of S$24.4m, we estimate that Yoma will still make a core operating profit.