Jasmine Broadband Internet Infrastructure Fund: In-line core results; marginal YoY core profit rise expected for 2Q21
- Core profit consistent with our estimate
- JASIF posted a net profit for 1Q21 of Bt1.78bn
- The 1Q21 rental revenue was Bt2.54bn
Our BUY rating stands on JASIF, based on a robust dividend yield of 10.3% in 2021 amid the low interest rate climate. Although there is a concern over the new technology of low-earth orbit (LEO) satellite, which will replace the OFC in the future, we believe that the current LEO satellite pricing package—featuring US$99/monthly fee plus $499 upfront equipment costs—still cannot compete with Bt399-699/package of fixed broadband service in Thailand at a mass scale. We think that it will not be a real threat for JASIF at least in the next five years.
Core profit consistent with our estimate
JASIF posted a net profit for 1Q21 of Bt1.78bn or earnings per unit (EPU) of Bt0.22 (down 15% YoY and 32% QoQ). Excluding Bt400m unrealized loss on revaluation of optical fiber cable (OFC) in 1Q21, core profit, or funds available for dividend payment, was Bt2.18bn, up 3% YoY but down 1% QoQ. The noncash unrealized loss in 1Q21 is not calculated in the dividend payout. Net profit missed our model by 19% due to the the recognition of the above unrealized loss (which we had not previously factored in), but core profit was in line with our estimate.
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