Our BUY rating stands, premised on a high dividend yield of 10-11%. We think that JASIF stands to benefit from the high inflationary climate.
Core profit and DPU in line with our model
JASIF posted a net profit for 2Q22 of Bt1.41bn or earnings per unit (EPU) of Bt0.18 (down 32% YoY and 13% QoQ). Excluding Bt800m in unrealized loss on revaluation of optical fiber cable (OFC) in 2Q22, core profit, or funds available for dividend payment, was Bt2.21bn, up 2% YoY and flattish QoQ. The 2Q22 noncash unrealized loss was not used to calculate the DPU. Net profit undershot our model by 36% due to the unrealized loss but core profit was in line. It has announced 2Q22 DPU of Bt0.23/unit, or 83.2% dividend payout ratio (of core profit), which was aligned with our estimate and the DPU of Bt0.23/unit for 1Q22.