Yoma's new businesses to drag on earnings

Gestation losses expected in the near-term.

As Yoma Strategic Holdings (Yoma) puts in the infrastructure and associated overheads to sustain long-term growth, RHB is expecting the firm's new businesses to incur gestation losses.

"New businesses are still in gestation," it said.

Yoma’s non-real estate businesses are ramping up steadily, with the KFC network growing to seven stores and a quarterly revenue run rate of SGD2.7m.

The automotive business saw continued YoY growth from both a higher fleet at its vehicle rental business and higher sales of agricultural tractors, notwithstanding supply issues at the manufacturer level.

Yoma reported QFY17 net profit of SGD8.5m, bringing its interim earnings to SGD10.1m. Broad-base growth was seen across its core businesses