SINGAPORE (April 7): OCBC Investment Research is keeping its “buy” call on Singapore Myanmar Investco (SMI) with an unchanged target price of 97 cents.
This comes after the group on Thursday announced that it is starting retail and F&B operations in Junction City, an integrated development in Yangon, Myanmar.
With a five-year lease, the group is targeting to open up and operate up to 10 retail brands and F&B concepts in the retail & entertainment complex of Junction City.
(See: Singapore Myanmar Investco to start retail, F&B operations at Junction City)
“With the addition of this development, we reiterate that SMI offers prime exposure to Myanmar’s fast-growing consumer and tourism sectors,” says OCBC lead analyst Jodie Foo in a report on Friday.
On top of the retail and F&B venture at Junction City, SMI also holds a dominant position in airport duty-free retail at Yangon International Airport’s new terminal.
SMI has inked a 10-year exclusive supply agreement with DFS Group, and has also won a 10-year duty-free retail concession at Yangon International Airport (YIA) for 90% of commercial space at the new terminal.
(See: Can Myanmar’s growth lift this company out of the red?)
According to Foo, SMI’s duty free business has been “growing well”.
“Led by a strong management team, coupled with a backdrop of a high-growth economy, we believe SMI is attractively positioned for growth,” says Foo.
As at 12.51pm, shares of Singapore Myanmar Investco are trading 3 cents higher at 55.5 cents.
