Yoma Strategic Holdings Ltd. 6M 2025 Financial Results: Solid Revenue Upswing, Ongoing Challenges in Myanmar

Yoma Strategic Holdings Ltd. (“Yoma”) has released its condensed interim financial statements for the six months ended 30 September 2025 (“6M-Sept2025”). The report reveals a significant improvement in top-line growth, although profitability remains negative. Below, we analyze the key metrics, trends, and corporate actions, and conclude with an investor-oriented outlook and recommendations.

Key Financial Metrics and Performance Comparison

Segment Performance and Historical Trends

Revenue Growth: Yoma posted a strong YoY revenue increase of 19.3%, rising from US\$95.21 million to US\$113.59 million. Growth was primarily driven by:

• Yoma Land Development: Revenue surged 29.4% YoY, mainly due to new launches at Pun Hlaing Estate and continued sales at StarCity.
• Yoma Motors: Revenue more than doubled (+122.7%), reflecting restocking of inventory and higher sales of commercial trucks and passenger vehicles.
• Yoma F&B: Revenue rose by 18.5%, driven by strong consumer demand and successful marketing campaigns at KFC and YKKO.

The mobile financial services segment (Wave Money) saw declining over-the-counter transaction revenue, partially offset by a significant increase in interest income from trust account balances.

Profitability: While the net loss narrowed by 17.3% YoY, it remains material at US\$8.70 million. EPS also declined due to an increased share base. Core EBITDA improved nearly 50% YoY, indicating better operating efficiency and higher gross margins, particularly in land development and digital financial services.

Dividends

No interim dividend was declared for 6M-Sept2025, consistent with the same period last year. The Board cited the challenging operating environment, ongoing project commitments, and deleveraging plans as reasons for withholding dividends.

Balance Sheet and Cash Flow Highlights

• Total Assets: US\$1.12 billion (30 Sep 2025), stable from US\$1.13 billion (31 Mar 2025).
• Net Assets Attributable to Owners: US\$335.13 million, down from US\$349.95 million at the prior year-end, reflecting the period loss and FX adjustments.
• Cash and Bank Balances: Increased to US\$125.72 million (from US\$99.40 million YoY), but a substantial portion (US\$95.13 million) is restricted, mainly in Wave Money trust accounts.
• Borrowings: Total borrowings increased to US\$172.35 million, with a shift toward MMK-denominated debt to match local cash inflows.
• Net Cash from Operations: US\$16.90 million inflow, significantly higher than last year due to strong sales collections.

Exceptional Items & Corporate Actions

• Exceptional Income/Expense: No major exceptional gains or losses. Net fair value losses were modest at US\$0.39 million.
• Asset Sales: Sale of certain investment properties (Galaxy Towers at StarCity) and reclassification of others to development properties.
• Dilution/Placements: 9.97 million shares issued under performance share awards; 26.95 million new performance share awards granted.
• Acquisition: Yoma Fleet Limited became a wholly-owned subsidiary through the acquisition of the remaining 20% minority interest via share issue.
• Perpetual Securities: Multiple issuances (US\$15 million each in June and July 2025) and partial redemptions, with high (18%-20%) distribution rates.
• Related Party Transactions: Extensive related-party transactions, including sales, purchases, and treasury transactions with entities linked to controlling shareholders. Notably, treasury placements with Yoma Bank (associate of a controlling shareholder) total US\$26.34 million for the period.

Chairman’s Statement

“The operating environment in Myanmar remains challenging, with ongoing constraints around imports and operational disruptions. However, power outages have eased during the rainy season, and MMK has been relatively stable in recent months.

National elections are scheduled to commence from late December 2025. The Group will monitor developments as conditions on the ground remain fluid and require agility in operations and investment decisions. Nonetheless, the Group remains positive on the long-term growth prospects for its businesses, underpinned by macro trends, such as increasing urbanisation, demand for hard assets, and the transition to digital solutions across the country.

Yoma Land continues to hold a solid backlog of unrecognised revenue amounting to US\$93.03 million. Overall market sentiment remains cautious, and the Group will selectively launch new projects aligned with customer profiles and appetite. Wisteria Villas, an exclusive landed villa project in Pun Hlaing Estate (PHE), and Evergreen Residences, a condominium development also in PHE, were launched at the end of September and the middle of October, respectively, and have seen healthy buyer interest. As at the date of this Announcement, more than 50% of the launched units at each of these projects have been booked and sold. The Group is also evaluating development opportunities in other cities in Myanmar.

At Yoma F&B, consumer spending is expected to remain healthy during the upcoming holiday season. The temporary supply disruptions caused by import delays in the recent quarter are expected to ease by the end of the year. Over the next 12 months, the Group is planning a measured expansion to store count of 3-4 new restaurants in Myanmar and 1-2 new restaurants in Thailand to take advantage of growing demand while preserving capital flexibility.

Wave Money continues to grow its digital services following the launch of MMQR in February 2025, whilst also leveraging its nationwide network of agents for additional cash-based services. The launch of the 2C2P WAVE App in October 2025 in Thailand further enables fast and secure remittances from overseas and is expected to broaden Wave Money’s ecosystem and strengthen its cross-border capabilities.

The Group remains focused on adjusting to market changes, enhancing financial resilience, and managing currency risk. This includes ongoing efforts to reduce net gearing and shift financing structures towards MMK-denominated borrowings to naturally align with local currency cash inflows.”

Tone: Cautiously optimistic, with clear acknowledgment of ongoing risks and a focus on long-term growth and resilience.

Risks, Unusual Items, and Outlook

• Myanmar’s macroeconomic and political environment remains highly volatile, with national elections ahead and persistent business disruptions.
• High distribution rates on perpetual securities and a lack of dividend payout signal a focus on liquidity and capital preservation.
• Related-party transactions are material and should be monitored for governance risk.
• Yoma continues to execute measured expansion in property and F&B, but will remain selective given the uncertain backdrop.

Conclusion and Investor Recommendations

Financial Performance & Outlook: Yoma Strategic has demonstrated notable revenue growth and operational efficiency improvements. However, bottom-line profitability remains elusive and the macro environment in Myanmar is still fraught with uncertainty. The company is taking prudent steps to manage liquidity, reduce gearing, and align funding with local currency cash flows. The outlook is neutral to negative in the short term given persistent losses, high financing costs, and political risk, but long-term prospects could improve if Myanmar stabilizes and digital/urbanization trends accelerate.

Investment Recommendations

• If you currently own Yoma shares:
  Consider holding, but monitor closely. The company is showing operational improvement and is protecting liquidity, but risks remain elevated. If risk tolerance is low or if you need income (no dividend), consider reducing exposure.
• If you do not currently own Yoma shares:
  Wait for clearer signs of consistent profitability, macroeconomic stabilization in Myanmar, and/or a more attractive valuation. Yoma remains a high-risk, high-reward play with exposure to both structural growth and significant country risk.

Disclaimer: This analysis is based solely on information disclosed in Yoma Strategic Holdings Ltd.’s 6M 2025 interim results. It does not constitute investment advice. Investors should consult their own advisors and consider their risk tolerance before making any investment decisions.

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