SINGAPORE (May 20): OCBC is keeping its ‘hold’ call on Yoma Strategic Holdings but raising its fair value estimate from 48 cents to 49 cents.

The research house observes that the group’s telco towers investment, as well as smaller losses from the agricultural segment, have led to the group’s $36.3 million fair value gain, boosting its y-o-y FY16 PATMI by 32.6% to $37.2 million.

The group also reported gradual improvement in its real-estate business, after a smooth transition to Myanmar’s new government after the Nov 15 elections.

Says OCBC lead analyst Eli Lee in a report out on Friday: “Adjusting for one-time gains, we deem these results to be in line with our expectations.”

“The group is targeting to grow from five KFC stores currently to 12 stores by Mar 17, and we also expect significant value creation ahead from Yoma’s stake in its growing telco towers business,” Lee adds.

Meanwhile, DBS Vickers Securities is maintaining its ‘buy’ recommendation on Yoma with a 78 cents price target.

In a Friday flash report, analyst Derek Tan sees upcoming improvement in the group’s property sales prospects in the medium term, given the enactment of the condominium law which allows foreigners to purchase up to 40% of a condominium apartment block, as well as grants buyers access to bank financing.

Looking ahead, he also anticipates the group’s tourism, F&B, automotive and telecommunication infrastructure business segments to contribute positively to its growth.

“Stock price and interest have risen on the back of expected stability in the political climate post elections, which we believe will translate into better prospects across its various business segments,” concludes Tan.

As at 10:45am, Yoma is up by 1% at 52 cents.