Kasikorn Securities Has Revaluated JAS to “BUY” at ฿7.88 with Big Dividend to Come

As of today, September 11, 2018 Jasmine International Public Company Limited (JAS) closed at ฿5.15/share, up ฿0.10 or 1.94% with 178.99 million baht in total value. It has become an interesting share after brokers advise investors to “buy” instead of the formal “hold” advice. JAS has a tendency to yield quite a high dividend in the future.

Kasikorn Securities stated on its analysis today that the company recommends investors to “buy” at the target price of ฿7.88/share for 2019 using sum-of-parts (SOTP) valuation method instead of its earlier advice to “hold” at ฿5.5/share. JAS would have its resolution in October for the second and third selling assets as well as the lending JASIF.

According to the estimation, the above transactions would yield ฿1.24/share of dividend in 2019 and ฿0.8/share in 2020, which is 40% of dividend yield from JAS. Moreover, JAS will have more potential on expanding fixed broadband business on households and its strong position in provincial areas that have lower competitors will support JAS business to grow significantly.

The selling assets and lending agreements have been considered in the above analysis, resulting in 17-54% decrease profits by estimation in 2018-2020, while the target price has been adjusted to a higher value in 2019 using sum-of-parts (SOTP) valuation method, reflecting JAS’s strong fixed broadband business.