Although ADVANC’s decision to be JASIF’s new sponsor, should it happen, might pose a long-term risk to unitholders, we believe that the super-high dividend yield of 11% from now until Nov 2025 will secure its unit price. It is now too undervalued, and our TRADING BUY stands.
Core profit and DPU in line with our model
JASIF posted a net profit for 3Q22 of Bt1.42bn or earnings per unit (EPU) of Bt0.18 (down 15% YoY and flattish QoQ). Excluding Bt800m in unrealized loss on revaluation of optical fiber cable (OFC) in 3Q22, core profit was Bt2.22bn, up 2% YoY and flattish QoQ. The 3Q22 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 with our estimate. It announced 3Q22 DPU of Bt0.23/unit, or 83.1% dividend payout ratio (of core profit), which was in line with our model.