|
» K1 Ventures is a workout situation which we initiated 2 years ago. After a failed management buyback in 2012, the company embarked on a divestment track and has been unwinding its assets and distributing sales proceeds. To date, the group has distributed 12 cents/share in the past 2 years. The group recently declared a 1.5 cents/share payout via a capital reduction after announcing its full year results. Separately, it received an additional US$61.5m from KUH, its education-related investment in the U.S., after KUH’s 65%-owned subsidiary Knowledge Universe Education (KUE) sold its U.S childcare operation in August.
Assuming this US$61.5m is distributed to k1 shareholders, this will amount to another bumper payout of 4 cents/share. KUH is currently sitting on cash and real estate assets, which we expect will eventually be distributed to k1. We are adding 500,000 shares at $0.192/share.
 Serge Pun, executive chairman of Yoma Strategic Holdings. Photo: mizzima.com» Yoma Strategic is the only listed group offering a pure exposure to Myanmar. To benefit from the opportunities opening up from Myanmar’s economic liberalization, CEO Melvyn Pun is driving the group’s diversification beyond property to a conglomerate with a vision for the non-property side to contribute 50% of top-line and bottom-line by 2020. Within the non-property businesses, the automotive services and consumer divisions are growing rapidly. The Group’s Case New Holland agriculture equipment business is expected to continue to see good demand, supported by increased mechanisation of the country’s agriculture sector.
Meanwhile, Yoma Fleet, the Group’s commercial vehicle operating and rental business, is expected to start contributing to the Group’s revenue in the coming quarters with the successful leasing of 170 vehicles. On the consumer front, the first KFC store opened in Yangon in June to over-whelming response from consumers and the group intends to roll out KFC outlets across Myanmar over the next 2-3 years, positioning the brand for mass-market appeal. In property, Yoma has 2 existing large scale residential projects in Yangon, Star City and Pun Hlaing Golf Estate, and it expects to commence development works on its prime, downtown mixed project in Yangon, the Landmark, by year end. The stock has corrected sharply in line with the general market, and trades at 10% below book value of S$0.38/share. We are buying 300,000 shares at S$0.35 apiece.
|
