Our BUY rating stands, premised on a high dividend yield of 8.5%. JASIF will benefit from the high inflationary environment in 2022 through its upward adjustment of 2023 rental rates under lease agreements.
Core profit in line with our model; lower DPU than modeled
JASIF posted a net profit for 1Q22 of Bt1.61bn or earnings per unit (EPU) of Bt0.2 (down 9% YoY and 35% QoQ). Excluding Bt600m unrealized loss on revaluation of optical fiber cable (OFC) in 1Q22, core profit, or funds available for dividend payment, was Bt2.21bn, up 2% YoY and 1% QoQ. The 1Q22 noncash unrealized loss was not used to calculate the DPU. Net profit undershot our model by 27% due to the unrealized loss but core profit was in line with our forecast. JASIF announced 1Q22 DPU of Bt0.23/unit, or 83.1% dividend payout ratio (of core profit), which was lower than our previous DPU estimate of Bt0.24/unit for 1Q22 and the actual DPU of Bt0.25/unit for 4Q21.