Earnings Report /
Thailand

Jasmine Broadband Internet Infrastructure Fund: Robust core profit growth; 2020 DPU forecast revised up

  • Core profit in line with our model

  • JASIF posted a net profit for 2Q20 of Bt1.93bn

  • The 2Q20 rental revenue was Bt2.54bn

Bualuang Securities
11 August 2020

With its highest dividend yield of 9.6% in the SET, investors must have JASIF in portfolio hedging against the currently low interest rate climate.

Core profit in line with our model   

JASIF posted a net profit for 2Q20 of Bt1.93bn (up 15% YoY but down 8% QoQ), or earnings per unit (EPU) of Bt0.24 (down 21% YoY and 8% QoQ). Excluding an extra expense item of Bt194m in unrealized loss on revaluation of the previous 980,000 core km of optical fiber cable (OFC) in 2Q20, core profit, or funds available for dividend payment, was Bt2.12bn, up a significant 54% YoY and 1% QoQ. Net profit missed our model by 8% due to the the recognition of the above unrealized loss (which we had not previously factored into our model), but core profit was aligned with our estimate. We didn’t pay much attention to net profit because the dividend is normally paid from core profit and the noncash unrealized loss in 2Q20 will not be included in the dividend payout. The Net Asset Value (NAV) was Bt10.94/unit at end-2Q20.