FMI Group to move forward after record revenue in FY2018

FIRST Myanmar Investment Group (FMI), one of the five companies listed on the Yangon Stock Exchange, says it will keep investing in four key sectors – financial services, healthcare, real estate and tourism – after posting record-high revenue for fiscal year 2018.

The company booked more than 200 billion kyats in sales for the financial year that ended on March 31.

TunTun, executive director and chief financial officer of FMI, said the revenue increases at two of the group’s subsidiaries, Yoma Bank and Pun Hlaing Siloam Hospital (PHSH), were key contributors to the record revenue growth enjoyed by the group.

Revenue jumped 27.5 per cent at Yoma Bank and PHSH piled on a 28.2 per cent gain for the financial year.

“Our financial services have grown due to increased interest income from loans, overdrafts, and hire-purchase products, which was largely driven by Yoma Bank’s growing loan book. Likewise, an increase in patient volumes mainly drove our revenue growth in healthcare sector,” TunTun said at a press conference.

He expects the two sectors to sustain their growth as key drivers of FMI’s business performance this year, as Yoma Bank will continue to provide loans to small and medium-sized enterprises while it digitalises its services and PHSH will build a nationwide hospital network.

“We expect the financial services sector will continue to deliver a remarkable performance,” he said. “We expect to see sustained growth of Yoma Bank, as it continues to have funding agreements with local and overseas finance institutions to provide funding to small-scale entrepreneurs and customer-focused digital banking. This can help to grow its overall performance in the long run.”

PHSH has been working on Myanmar’s first EMR-ERP system, with what it calls “a fully automated paperless global best practice technology platform” over the next three years.

Additionally, FMI will prioritise opportunities in real estate and tourism. TunTun said he is optimistic that there will be gradual growth in the two sectors, despite what are described as the international pressures on Myanmar.

Happy with outcomes
“The real estate market here is not good yet, but we are quite satisfied with our business outcomes from that sector. Tourism is another important sector for us, as our portfolio investments in different cities are in the pipeline,” he said.

Thanlyin Estate Development saw an increase in sales last year. In March, the group launched sales for the Peninsula Residence Yangon project, and it has reported strong interest.

The firm has restructured its tourism investments to come under Memories Group Limited, the first Myanmar tourism-centric company to be listed on the Catalist Board of the Singapore Exchange.

The newly established company will focus on three elements: what it calls an “experience” aspect, offering tourists an authentic experience of Myanmar; services, including tours and hotel management; and its hotel business in major tourist attractions. To date, it has invested over US$100 million in its tourism projects, including the acquisition and development of six hotels in Yangon, Tanintharyi, Mandalay, Kayin, Kayah and Mon.

TunTun said the firm would pursue joint ventures with international and local partners, as the Myanmar economy grows further.

It recently entered a new business venture with JCDecaux Asia Pte Ltd, a global advertising company, to set up what he describes as a new benchmark for bus shelters in Yangon. Winning a 20-year contract with Yangon City Development Committee, the venture is expected to provide reasonable return to the group in the long term.

He said the firm would hire more professionals to fuel the expansion in its businesses. It will also invest more in professional fees and information technology, backed by smart banking services at Yoma Bank.

Source: Eleven Myanmar

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