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QuestionsCategory: MiscellaneousYoma Strategic
Ang Henry asked 4 years ago

Hi,
 
Will like to hear your views on the above company and whether there’re similar competitors locally/ regionally?

5 Answers
Victor Chng answered 4 years ago

Hi Henry,
 
I think Yoma had recently set up many different business. I think they are like a small conglomerate already. Hard to find similar one that are close to them. 

Ang Henry replied 4 years ago

Thanks Victor,

I realized that if I deduct off their other income component mainly from fair value gains from their income statement it’s actually a loss making company. Having known it’s a property related business do I cross them out for suitable counter to invest in this case?

Victor Chng answered 4 years ago

Hi Henry,
 
Property related business can also make money, just that you have to buy it at the right price. For us, we prefer more recurring type of business. Hence, it is depend on your preference. 

Ang Henry replied 4 years ago

Do you mean Yoma business model is not that recurring in nature?

Victor Chng answered 4 years ago

Hi Henry,
 
I have not analyse this company before. You may want to share with me, what is the business segment that Yoma have ?
 
From the business itself, you can find out how recurring is the business.

Ang Henry replied 4 years ago

This is what I’ve extracted from the annual report;

1) Sale of goods

– Automotive & heavy equipment
– Food and beverages

2) Sale of land development rights and development properties

3) Leasing income from motor vehicles

4)Leasing income from investment properties

5) Rendering of services
– Hot air balloons 8,852 8,436
– Real estate services

It seems most of their business operations are recurring in nature and have lots of potential growth especially with the recent tie up with Grab. The main risk I believe is the uncertain political situation with the military holding 25% of the parliament seats which might impose isolationist policies if their status is being threatened in time to come.

What are your views Victor?

Victor Chng answered 4 years ago

Hi Henry,

 

If you are worried about the political risk, you should look at the company from a portfolio level. You may want to allocate a small percentage instead of a high percentage in this company.

 

Do you know which business is the major contributor to their revenue and how many percentage?

Ang Henry replied 4 years ago

From the recent AR the sale of goods(34%) and the sale of land(37%) are the major contributor to the revenue.

What are your opinions of their business model, are most of them recurring in nature?

Victor Chng answered 4 years ago

Hi Henry,
 
From a brief look at their annual report under the segment information, it seem like their recurring business are real estate service, leasing of equipment and consumer segment which make up about 54% of their total revenue.