First Myanmar Investment Group (FMI)

2019FY Results Report 04 January 2020

MMK'000 FY 2019 FY 2018 % change

STRONG BUY Revenue 279,735,934 205,619,926 36.0
Gross Profit 110,728,849 72,765,909 52.2
Profit before tax 20,726,037 27,922,595 -25.8
Share Price: Ks 9,500 Net Profit after tax 14,443,389 24,777,453 -41.7
12M Target Price: EPS 338 746 -54.7

Ks 12,000
A higher income of FMI can be expected in the 2020FY. FMI’s profit
12M High: decreased by a substantial degree due to unexpected fair value
Ks 12,500 adjustment of real estate holdings, a nation-wide halt in sales of land and
housings. Current news circulation of an estate taxation cut would
12M Low: reaccelerate the housing market, significantly increasing sales and
8,800 revaluation of available-for-sale assets.

Shares Outstanding:
Sizeable profits to be seen in 2020FY. Interest expenses are to be
27,112,747 reduced in the year to come due to the Central Bank’s Interest cut as
Market Cap: part of an economic stimulus program. The current global pandemic,
COVID-19 may increase revenue in FMI’s investments in the healthcare
Ks 284,684 million sector and will highly likely offset the decrease seen in the investments
in the tourism sector.
Average daily volume:
2,368 Recommendation of a STRONG BUY for FMI. We expect higher
Average daily value: dividend payment of Ks 430 per share for 2020FY. This would imply a
dividend yield of 3.58%. The progress of COVID-19 in Myanmar has yet
Ks 27,070,025 to be seen and could trigger a re-rating process for FMI. As at
TODAY’S DATE, we maintain our valuation of FMI at Ks 12,000 in 12
FMI Share Price months-time.

15,000
Solvency Profitability
Ratios Ratios
13,000
11,000 FY FY FY FY
9,000 2019 2018 2019 2018
7,000 Debt to
Total 2.6% 2% Gross
39.6% 35%
Assets Margin

Debt to Net
24% 14% Profit 5% 12%
Equity
Margin
Analyst: Liabilties Return
8.1 6.5 on 1% 1%
to Equity
SHIN THANT LIN Assets
Net Profit Return
to 0.58% 1.2% on 1% 1%
Liabilities Equity