Earnings Report /
Thailand

Jasmine Broadband Internet Infrastructure Fund: In-line core results; heightened long-term risk awaiting ADVANC’s decision

  • Core profit and DPU in line with our model

  • JASIF posted a net profit for 3Q22 of Bt1.42bn or earnings per unit of Bt0.18

  • We model a 4Q22 core profit of Bt2.23bn

Bualuang Securities
10 November 2022

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.