Yoma’s net profit plunges 28.6% to $1.8m in Q1

Blame it on weak residential sales.

Slammed by sluggish residential sales in 1QFY17, Yoma Strategic Holdings (Yoma) saw core net losses of $8m, compared to a $5.3m loss in 4Q16 as well as a $2.3m gain in 1Q16.

According to a report by CIMB, factoring in a noncore revaluation gain of $10.2m on a telecom tower investment as well as other exceptional items, Yoma registered a net profit of $1.8m. This reflects a 28.6% YoY plunge from its 1Q16 net profit of $2.6m.

Revenue for the quarter slipped 22.4% YoY to $17.6m, largely on back of the 75% YoY crash in property sales to $3.1m.

Meanwhile, Q1 sales rate at Star City came in at a meagre 10-15 units/month or 120-180 units annualised, while only 2-3 landed house units were sold at PHGE. CIMB notes that even if it factors in a moderate sales rate improvement, it may still take 20-30 years for Yoma to fully monetise its property investments in Star City and PHGE.

Yoma also saw non-property sales for the quarter spike 37% YoY to $9.6m in 1Q17, thanks to a 6% YoY uptick from the firm’s automotive businesses, as well as contribution from its new F&B business.