Yoma's profits up 27.3% to $8.5m

Thanks to fair value gains from telco towers stake.

Yoma Strategic Holdings' 2QFY17 PATMI increased YoY to S$8.5m from S$0.3m mainly due to S$14.7m of fair value gains on its stake in its telecommunications tower investment and stronger contributions from the sale of residences/LDR and real estate rental and services.

 In terms of the topline, group revenues similarly increased 25.2% given growth across the group's real estate, automotive and equipment, and consumer businesses.

"We judge this quarter's results to be broadly within expectations," said Eli Lee, analyst at OCBC Investment Research

To recap, Yoma is currently in the midst of spinning off its tourism-related business as part of an RTO of SHC Capital Asia Ltd. 

After the exercise, Yoma is expected to be issued 167m shares valued at an aggregate of S$43.9m which gives the group a shareholding of 53.5% in SHC before taking into account any shareholding effects arising from any proposed compliance placement of SHC.

"We highlight that the proposed exercise is subject to condition precedents and further approvals from relevant authorities," noted OCBC Investment Research.