Tuesday, December 17, 2013

Yoma Strategic : buys land to build hotel (DBSV)

Yoma Strategic Holdings -
BUY S$0.735
STI : 3,081.72
Price Target : 12-Month S$ 1.02
buys land to build hotel

• Acquiring 80% stake in JV company to build 46- room hotel in Pun Hlaing Golf Estate
• To invest US$2.4m for the land and US$9.4m for construction
• This move will strengthen Yoma's interest in tourism, but it needs to address financial and human capital issues for this development


Yoma has entered into a conditional agreement to acquire 80% stake in a plot of land in Pun Hlaing Golf Estate from Pun Hlaing Lodge (PHL) for US$2.4m. The land is designated for the construction of a hotel on 8,887 m2 site and has a remaining lease of 45 years. The plan is to build a 46-room international standard hotel with conference and banquet facilities.

Under the agreement, Yoma's wholly-owned subsidiary Yoma Development Group will take 80% stake in a Myanmar-registered JV company, with PHL as its partner. The JV company will hold the rights to the land and be responsible for the construction of the hotel, to be funded by equity and debt. For its share, Yoma is expected to contribute up to US$9.4m to fund the construction.

Separately, PHL will procure the rights to another plot of land in the vicinity with an area of 221.5 m2, which will be injected into the JV company at no additional consideration. The plan is to develop this plot of land into a fitness and leisure centre for use by hotel guests and residents of Pun Hlaing Golf Estate. The target market for this hotel would be golfers at the estate and participants/visitors of international tournaments to be held there in future.

Our take: Strategically, this venture fits into Yoma's plans to expand into tourism-related businesses. Economically, it is also positive given the captive market of Pun Hlaing Golf Estate, considered one of Myanmar's finest with independent facilities and an 18-hole championship golf course. Based on the land acquisition price and estimated construction costs, the cost per room would be approximately US$320k. The returns, however, would depend on room and occupancy rates. All in, Yoma's share in this venture would cost US$11.8m, to be funded by internal cash flow and debt.

As always, Yoma's ventures demand investment in either human or financial capital, or both. The concern would be its ability to balance its attention and resources on the several ventures that are happening simultaneously. This development seems positive as tourism remains strong in Myanmar, with tourist arrivals up by 30-40% YTD. But we have not factored this latest development into our forecasts as the venture is pending approval, and we need more details to estimate the scale and impact on Yoma's bottomline. No change to our Buy rating and TP of S$1.02.


Source/Extract/Excerpts/来源/转贴/摘录: DBSV-Research,
Publish date: 11/12/13

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock