YANGON — First Myanmar Investment said Tuesday its net profit surged by 51.9%, year on year, to 6.2 billion kyat ($29.1 million) in the first fiscal half ended Sept. 30.
Revenue at one of Myanmar’s largest public company jumped 49.4% on the year to 74.6 billion kyat. By sector, financial services contributed 67.4 billion kyat to revenue, while health care added 7.1 billion kyat, according to a financial report issued by FMI.
Commenting on the results, Serge Pun, the company’s executive chairman said: “We are very pleased with the financial performance of the company during the first six months of the fiscal year. The strong performance of Yoma Bank and Pun Hlaing Siloam Hospitals underscores the importance of our three-pillar strategy of investing in the financial services, real estate and health care sectors. We look forward to continued [strong] performance during the latter half of the fiscal year.”
Pun Hliang Siloam Hospital, which is 60% owned by FMI, continued to do well, with revenue rising 25.1% to 7.1 billion kyat, thanks to higher inpatient traffic and higher income from services.
FMI is the first company to list on the Yangon Stock Exchange, making its debut on March 25. Two other companies have since listed on the bourse.
To tap growing demand for financial services in Myanmar, FMI is planning to expand Wave Money, a network of 4,000 shops including tea shops, restaurants, and grocery stores that offer basic banking services including deposits, withdrawals and money transfers. It hopes to have 6,000 Money Wave affiliates by the end of the year.
Although the company’s overall revenue has been strong, sales of condominiums at Star City, a development it owns near the port of Thilawa, have been slower than usual due to a cooler real estate market.
FMI expects the country’s gross domestic product to continue growing strongly, due in part to the recent lifting of U.S. sanctions against Myanmar. “We remain optimistic that the positive macroeconomic trends occurring in Myanmar — higher incomes, greater urbanization, and better job opportunities” will continue, the company said in a statement. It also forecasts a gradually improving investment climate despite currency volatility over the past few months.
Source: Nikkei Asian Review
