MYANMAR STOCK WATCH
Myanmar Stock Watch
With the planned opening of the Myanmar Stock Exchange in
2015 these are companies I believe will list on the Yangon Exchange. I travel
to Yangon every 6 weeks for my consulting business and have met a wide range of
business contacts over the last year.
The Central Bank of Myanmar is cooperating with the Daiwa
Research Institute and Japan’s Tokyo Stock Exchange to establish Myanmar’s
stock exchange, termed the Myanmar Security Exchange Center [MSEC]. As of
July 2013, as many as 22 local companies across a range of industries have been
approached to consider listing on the new securities exchange, scheduled to
open in 2015.
The information is surface scratching enough to allow you to
glimpse which large well capaitalized companies are opertaing in which industries.
If your firm would like more information and deeper analysis, I can be
contacted through ddubyne [at] oilseedcrops.org
Firms are listed Alphabetically
ACE
Data Systems Co., Ltd- is a leading ICT solutions
provider in Myanmar. Founded in 1992, ACE has been developing various
information systems with core services in Software Product Development,
International Outsourcing, ICT Consultant, Support and Maintenance, System
Integration.
In October 2012, Daiwa Securities Group formed a joint
venture with local software developer ACE Data Systems to handle its
business in Myanmar. ACE is run by Thein Oo, chairman of the Myanmar Computer
Federation, whose connections have been instrumental in Daiwa's business growth
in the country.
Daiwa aims to spearhead a $380 million investment in Myanmar
to build an information technology backbone for the government in partnership
with major Japanese tech companies. Daiwa, which has long-standing links in
Myanmar and has already been chosen to help set up a local stock exchange, has
been selected by the central bank to draw up plans for the computer network.
Daiwa's plan would connect all government ministries in
Myanmar as well as schools and hospitals to a 'cloud' computing system
developed by ACE Data Systems that it sees as a cheaper and faster alternative
to building traditional server-based systems in a country where the supply of
electricity and network engineers remains scarce.
The 'cloud'-based system was expected to cost about 30
billion yen ($384 million), and start with the central bank's hubs in the
capital Naypyitaw, the country's biggest city, Yangon, and the second-largest,
Mandalay.
Asian
Green Development Bank (AGD)- AGD Bank provides banking services such as
domestic remittance, foreign remittance, foreign currency exchange, savings,
current and fixed deposits, loans and advances, operating hire purchase
business, issuing bank guarantees, operating on-line payment system, trade
finance and ATM’s. 
Forest
Products Joint Venture Corporation (FPJVC)- A 55-45 joint
venture of the Myanmar Timber Enterprise and private investors is one of
two companies listed on Myanmar Securities Exchange Centre's (MSEC's) trading
floor. It has sold 45,000 shares to the public at K7500 each.
Myanmar Forest Products and Timber Merchants' Association
(MFPTMA) was formed under license number (33), dated 10-5-1993 notified by the
Ministry of National Planning and Economic Development.
Organizations also involved with Myanmar Forest Products
Joint Venture Corporation are the Myanmar Forest Products & Timber
Merchants' Association, Myanmar Forest Department and the Myanmar Timber
Enterprise.
HTOO
Group of Companies- The Htoo Group of Companies (HGC) is the parent company
of Air Bagan, a privately held Myanmar airline company. The company has
several subsidiaries. Htoo Wood Products Company Ltd. is engaged in logging and
export of timber. HGC is engaged in construction, property development,
agriculture, transportation, shipping, mining, hotels and tourism operations. 
Interra
Resources- whose principle activities involve exploration and
extraction of petroleum in Myanmar saw its stock prices rise from SGD 0.09
to SGD 0.52 over the past year.
Interra holds a 60% interest in Chauk and Yenangyaung oil
fields covering approximately 1,800 square kilometres located along the
Ayeyarwaddy River 580 km north of Yangon and shares Petroleum Recovery
Contracts (IPRCs) with the Myanma Oil and Gas Enterprise (MOGE) which commenced
on 4 October 1996 for a term of 20 years and 6 months.
Operatorship of the two fields jointly is through joint
venture partner Goldpetrol Joint Operating Company Inc. During 2012, the
combined gross production for both fields was 812,468 barrels of oil.
Kanbawza
Bank (KBZ)- As of March 2013, KBZ Bank has expanded up to 100 branches
throughout Myanmar. Starting with an initial capital of MMK 477 million in
1999, KBZ Bank has expanded the capital of MMK 69 billion in year 2012.
Services offered are Issuance of LC, shipping guarantees,
collections, loans, savings and fixed deposit accounts, remittance, and Foreign
Exchange.
Max
Myanmar Group of Companies- was founded by Zaw Zaw in 1993 to import
buses and generators from Japan. The company has since diversified its
portfolio through connections to military officials, to
include construction, hospitality and tourism, manufacturing, banking
services and gem mining.
In July 2012, a struggling Singaporean bed linen maker
Aussino Group proposed a $47.38 million USD reverse takeover by Max Myanmar. In
this deal, Aussino would issue shares to buy a new firm called Max Strategic
Investments (MSI), to provide capital of Max Myanmar to operate petrol stations
in Burma and give Max Myanmar majority control of the Singaporean firm. Max
Myanmar currently operates 21 petrol stations in Myanmar. In the
2011-2012 fiscal year, MSI had a reported consolidated revenue of $75 million
USD. They also began in the cement industry this year.
Max Myanmar also constructed Zabudipa Stadium for the 2013
Southeast Asian Games, to be held in Naypyidaw in December 2013.
Max Myanmar is also involved in a $120 million USD
infrastructure project, the Kaladan Multi-Modal Transit Transport Project, with
Essar Group, an Indian firm. The project will link the landlocked Indian
state of Mizoram to Sittwe in Myanmar's Rakhine State and allow cargo vessels
to travel along the Kaladan River.
In August 2010, Max Myanmar opened its private bank,
Ayeyarwady Bank, with nationwide branches, after receiving a banking operation
license from the Central Bank of Myanmar.
Myanmar
Citizens Bank’s- current principal activities are Retail Banking and
Corporate banking. With a recently approved authorized dealer license, the bank
will be expanding into International Banking and Trade Finance activities. MCB
currently provides the following financial services across the country.
Retail Banking, Saving and Current Deposit Accounts, Loan
services, Remittance, Security Deposit, ATM, Payment order guarantee, Foreign
Exchange money changer.
Trade Finance (Import/ Export License Payment): Given the
part ownership of Ministry of Commerce, MCB enjoys a substantial advantage in
Trade Finance activities whereby all local trading companies are required to
open an account at MCB in order to make payments for import/export license fee.
Currently, there are about 5,788 of these accounts.
Myanmar
Securities Exchange Centre Co., Ltd- Formed in 1996 as a joint venture
between Myanmar Economic Bank and Daiwa Institute of Research from Japan, the
Myanmar Securities Exchange Centre Co., Ltd has two listed companies – Forest
Products Joint Venture Corporation and Myanmar Citizens Bank – and a total of
seven employees.
(MSEC) provides the following services; Assisting companies
going public, Helping investors in securities investments, Acting as an
intermediary in securities trading, Bonds, Advising foreign funds to enter into
Myanmar, Brokering, Underwriting and distributing securities, Publishing
investment information, Providing consultancy services, Managing venture
capital funds and acting as an agent for joint ventures.
MSEC sells Myanmar Treasury Bonds as an agent for the
Central Bank of Myanmar and shares of Myanmar companies as an agent for those
companies.
Myanmar
Thilawa SEZ Holdings Public Ltd. will issue shares for sale in March
2014 in order to raise about US $21 million to fund the first phase of the
Burmese-Japanese Thilawa Special Economic Zone (SEZ) near Yangon.
“Myanmar Thilawa SEZ Holdings Public Limited is going to
sell 2.145 million shares in total during an initial sale next month with each
share valued at 10,000 kyat [about $10] each raising about $21 million in
funds.
Myanmar Thilawa SEZ Holdings Public Ltd will make an
announcement about share sales in early March and provide a one month period to
buy shares. Investors could propose to buy shares at the company’s office and
also at Ayeyarwady Bank Ltd, Myanmar Apex Bank Ltd, Co-Operative Bank Ltd, Yoma
Bank Ltd and Kanbawza Bank Ltd.
Funds raised by share sales would be used to finance
construction of part of the first 400-hectare phase of the SEZ project, adding
that this phase, called the Class A Area, would cost about $180 million to
complete.
If any of the shares would fail to sell, the nine firms
owning the Myanmar Thilawa SEZ Public Company would buy up the shares.
The company is owned by Golden Land East Asia Development
Ltd, Myanmar Sugar Development Company Ltd, Myanmar Edible Oil Industrial
Public Corporation, First Myanmar Investment Company Ltd, Myanmar Agricultural
& General Development Public Ltd, National Development Company Group Ltd,
New City Development Public Company Ltd, Myanmar Technologies and Investment
Corporation Ltd, and Myanmar Agribusiness Public Corporation Ltd.
Up Coming Analysis:
First Myanmar Investment (FMI)
Myanmar Info-Tech
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