A fair value gain helped Yoma Strategic Holdings record a huge jump in second-quarter profit yesterday.
Earnings came in at $8.5 million for the three months to Sept 30, well up on the $300,000 posted a year earlier.
The stark increase was mainly driven by a fair value gain of $14.7 million from the group's telecommunications towers investment.
Yoma also recorded growth across all its three core businesses - real estate, automotive and equipment and consumer - to boost revenue 25.2 per cent to $24.9 million.
Net profit for the first half grew fourfold to $10.1 million, up 244 per cent on a year earlier, while revenue was flat at $42.6 million.
Earnings per share for the quarter came in at 0.49 cent, up from 0.02 cent a year earlier, while net asset value per share was 37.62 cents compared with 38.59 cents as at March 31.
Chief executive Melvyn Pun said: "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."
AT A GLANCE
NET PROFIT: $8.5 million (+2,757%)
REVENUE: $24.9 million (+25.2%)
Yoma holds a put option for its 25 per cent stake in its telecommunications towers investment and said on Tuesday that it has exercised this to sell its 12.5 per cent stake in this investment for US$35 million (S$49 million) to Edotco Investments (Labuan). It will continue to retain the remaining 12.5 per cent stake.
"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 the third quarter of the 2017 financial year, Mr Pun said.
"The transaction allows us to realise the significant fair value gains... and will help us further grow our core businesses."
Yoma is also in the midst of spinning off its tourism-related business as part of a reverse takeover of SHC Capital Asia.
The aggregate book value of the group's interest in the tourism assets and businesses to be disposed of was $38 million as at Sept 3. The aggregate purchase consideration for its stake in these tourism assets and businesses is $43.9 million.
Yoma said the gain on disposal, if any, will be recognised upon the completion of the reverse takeover of SHC.