Yoma Strategic Q2 profit jumps to S$8.5m from S$300,000 on back of fair value gain

SINGAPORE - Mainboard listed Yoma Strategic Holdings announced on Tuesday (Nov 8) a huge jump in second quarter profit to S$8.5 million from S$300,000 a year ago.

This was mainly driven by a fair value gain of S$14.7 million from the group's telecommunications towers investment.

Yoma also said it saw growth across all its three core businesses - real estate, automotive & equipment and consumer - with revenue for the quarter up 25.2 per cent year on year to S$24.9 million.

Net profit for the first half-year grew four times to S$9.6 million from S$2.4 million.

Said CEO Melvyn Pun said: "We are pleased to see good performance across our three core businesses. Our New Holland (tractor and agricultural equipment sales), Yoma Fleet (vehicle contract hire and rental) and KFC businesses continue to grow amid increasing demand, whilst our real estate business is seeing signs of recovery."

Yoma holds a put option for its 25 per cent stake in its telecommunications towers investment and announced on Tuesday that it has exercised its put option to sell its 12.5 per cent stake in this investment for US$35 million (S$48.7 million) to edotco Investments (Labuan) Ltd. It will continue to retain the remaining stake, where this purchase price will be used as the new base put price of the 12.5 per cent interest.

Said Mr Pun: "Our original investment of US$20 million has now grown to US$70 million, of which half is being sold. This will result in an additional US$4.8 million gain in 3Q2017.

"The transaction allows us to realise the significant fair value gains that we had recognised between 3Q2016 and 2Q2017 and will help us further grow our core businesses."

Yoma is also is in the midst of spinning off its tourism-related business as part of a reverse takeover of SHC Capital Asia Ltd. As at Sept 30, the aggregate book value of the group's interest in the tourism assets and businesses to be disposed of is S$38 million and the aggregate purchase consideration for its stake in these tourism assets and businesses is S$43.9 million.

Yoma said the gain on disposal, if any, will be recognised upon the completion of the RTO of SHC.