Myanmar Related Stocks

I was chatting with my friend on whatsapp and he is looking into emerging market Myanmar for investing idea. I went to google and saw this article from Fool.sg. Out of the 3 stocks, I only took a glance at Yoma and Singapore Myanmar Investco which have significant portion of their revenues from Myanmar.

1) Yoma Strategic Holdings Ltd (SGX:Z59)

Yoma is an investment holding company that has revenues from real estate, tourism, agriculture and transport. 

The company is leveraging its experience and network in Myanmar to partner with prominent multi-national companies to penetrate their business into the market. For example, Yoma collaborates with US-listed Yum! Brands Inc to bring its franchise KFC restaurants into Myanmar. Its KFC network has grown to seven stores and a quarterly revenue run rate of SGD 2.7m. Yoma has a JV with Mitsubishi Corp to distribute vehicles in the country.

From Yahoo stock screener, it shows that Yoma has a consistent upward trend for Gross Profit since 2013 to 2016. Net Income shows a straight upward line. Its Total Liabilities has tripled from 2014 65,000 to 2016 212,000. Yoma does not have positive cashflow yet. Yoma's new businesses will incur losses in the near-term and requires the necessary infrastructure to sustain long-term growth.

Personally, I do not agree with the remuneration system that is currently in place. It is not aligned with Shareholders' interest.

2) Singapore Myanmar Investco Ltd (SGX: Y45)

Singapore Myanmar Investco Limited, formerly Singapore Windsor Holdings Limited, is an investment holding company. The Company's segments include Trading of industrial products; Trading of F&B products; Provision of telecommunication towers and related services; Europcar rental vehicles, and Duty free and retail operations. It offers travel and fashion retail, which includes airport retailing; auto services, which provide car rental and limousine services-Europcar sole franchise; construction services, which distribute sany construction equipment and spares; food and beverage, which imports and distributes food and beverage products, and franchises; infrastructure services (telecom services), which own telecom infrastructure; infrastructure (logistics), which includes logistics and warehousing services in Myanmar; serviced offices, which provides serviced offices, and telecom equipment services, which distribute business-to-business telecommunication products and services.

In November 2016, Singapore Myanmar Investco has issued placement shares of S$0.42 to raise S$16.5 million to fund its expansion plans in Myanmar. Singapore Myanmar Investco is making effort to reduce its debt level since 2013 till 2016. The debt level is seen to reduce from 260,000 to 23,000. The company is still in growth stage and does not have positive cash flow. 

I like the Myanmar story and believes that it is a land of opportunity but the financial numbers from the above two companies are not convincing for me to invest my money.