thailand company focus jasmine broadband internet...

ASIAN INSIGHTS VICKERS SECURITIES ed: CK / sa: CS

BUYBUYBUYBUY (Initiating Coverage)

Last Traded Price: Last Traded Price: Last Traded Price: Last Traded Price: Bt9.05 (SETSETSETSET : : : : 1,416.00) Price Target :Price Target :Price Target :Price Target : Bt10.90 (20% upside)

Potential Catalyst: Potential Catalyst: Potential Catalyst: Potential Catalyst: Strong quarterly results and dividends Analyst Wasu MATTANAPOTCHANART +66 2657 7826 [email protected]

Price Relative

Forecasts and Valuation FY FY FY FY DecDecDecDec ((((BtBtBtBtmmmm) ) ) ) 2015201520152015AAAA 2016201620162016FFFF 2017201720172017FFFF 2018201820182018FFFF

Revenue 4,377 5,457 5,829 5,940 EBITDA 4,126 5,004 5,346 5,447 Pre-tax Profit 4,729 5,016 5,370 5,471 Net Profit 4,729 5,016 5,370 5,471 Net Pft (Pre Ex.) 4,088 5,016 5,370 5,471 EPS (Bt) 0.86 0.91 0.98 0.99 EPS Pre Ex. (Bt) 0.74 0.91 0.98 0.99 EPS Gth (%) nm 6 7 2 EPS Gth Pre Ex (%) nm 23 7 2 Diluted EPS (Bt) 0.86 0.91 0.98 0.99 Net DPS (Bt) 0.82 0.95 1.00 0.99 BV Per Share (Bt) 10.3 10.2 10.2 10.2 PE (X) 10.5 9.9 9.3 9.1 PE Pre Ex. (X) 21.0 17.0 14.6 14.1 P/Cash Flow (X) 42.2 5.6 9.3 9.1 EV/EBITDA (X) 12.5 9.6 9.0 8.9 Net Div Yield (%) 9.1 10.5 11.0 11.0 P/Book Value (X) 0.9 0.9 0.9 0.9 Net Debt/Equity (X) 0.0 CASH CASH CASH ROAE (%) N/A 8.9 9.5 9.7 Consensus EPS Consensus EPS Consensus EPS Consensus EPS (Bt):::: 0.92 1.01 1.04 Other Broker Recs:Other Broker Recs:Other Broker Recs:Other Broker Recs: B: 4 S: 1 H: 1 ICB IndustryICB IndustryICB IndustryICB Industry : Technology ICB Sector: ICB Sector: ICB Sector: ICB Sector: Software & Computer Services Principal Business:Principal Business:Principal Business:Principal Business: JASIF has investments in network of fibre optic components (FOC).

Source of all data: Company, DBS Vickers, Bloomberg Finance L.P

At A Glance Issued Capital (m shrs) 5,500

Mkt. Cap (Btm/US$m) 49,775 / 1,429

Major Shareholders (%)

JAS (%) 33.3

BBL (%) 9.1

State Street Bank And Trust Company (%) 7.9

Free Float (%) 45.9

3m Avg. Daily Val (US$m) 4.3

DBS Group Research . Equity

20 Apr 2016

Thailand Company Focus

Jasmine Broadband Internet Infrastructure Fund Bloomberg: JASIF TB | Reuters: JASIFu.BK Refer to important disclosures at the end of this report

Mispricing due to perceived risk • Fibre optic cable lessor that offers 11% yield

• New fibre injection to support FY16-17F growth

• Concerns on JASMBB’s 4G default has broadened the

valuation discount to 37% against DIF

• Initiate with BUY and DCF-based TP of Bt10.90

FOC lessor that offers lofty yieldFOC lessor that offers lofty yieldFOC lessor that offers lofty yieldFOC lessor that offers lofty yieldssss. . . . Jasmine Broadband Infrastructure

Fund (JASIF) was founded on 10 Feb 2015 with 800k core km of fibre

optic cable (FOC) at IPO. Triple T Broadband (TTB), the second largest

fixed-broadband player in Thailand, has agreed to lease 100% of the

network until 22 Feb 2026, thus JASIF’s income is highly secured.

New fibre injection to support FY16New fibre injection to support FY16New fibre injection to support FY16New fibre injection to support FY16----17F17F17F17F capacitycapacitycapacitycapacity. . . . As part of the IPO

deal, TTB will continue transferring 7,500 core km of FOC per month

to JASIF, which should end FY16F with 973k core km of cable, up

from 883k at end-2015. The new fibre capacity will be coming in

until Feb 2017, leading us to project 23% and 7% earnings growth in

FY16F and FY17F, respectively.

Too much concern on impact of JASMBB’s 4G default. Too much concern on impact of JASMBB’s 4G default. Too much concern on impact of JASMBB’s 4G default. Too much concern on impact of JASMBB’s 4G default. The market

has been overly concerned over two issues and their implications: i)

additional penalty on Jas Mobile Broadband (JASMBB), after its failure

to pay for the 900MHz licence, and ii) the potential revocation of

licences at related businesses (e.g. TTB’s fixed-broadband licence).

We believe that the penalty – to be finalised by NBTC by the end of

Apr – will only affect JASMBB and JAS, the mother company. Also,

TTB is a separate legal entity that has done nothing wrong, so the

outright revocation of the fixed-broadband licence is highly unlikely,

especially when the revocation has not been stated in the pre-auction

document.

We initiate coverage on JASIF with BUY We initiate coverage on JASIF with BUY We initiate coverage on JASIF with BUY We initiate coverage on JASIF with BUY call call call call and TP of Bt10.90and TP of Bt10.90and TP of Bt10.90and TP of Bt10.90, based

on 9.7% WACC and no more rent from 2043 onwards; FOC

networks usually have 30 years of useful life, so there are 26 years left

for JASIF’s network. Although JASIF should be trading at 20-25%

discount to DIF due to the shorter useful life of FOC compared with

towers (c.40 years), JASIF seems to be oversold – as evidenced by its

FY16F EV/EBITDA of 9.9x, or 37% lower than DIF’s 15.6x

87

107

127

147

167

187

207

7.2

7.7

8.2

8.7

9.2

9.7

10.2

10.7

11.2

11.7

Feb-15 Jul-15 Dec-15

Relative IndexBt

Jasmine Broadband Internet Infrastructure Fund (LHS)

Relative SET INDEX (RHS)

ASIAN INSIGHTS VICKERS SECURITIES

Company Focus

Jasmine Broadband Internet Infrastructure Fund

INVESTMENT THESIS

Profile Rationale

Jasmine Broadband Internet Infrastructure Fund (JASIF) was

established on 10 Feb 2015 as a closed-end infrastructure

fund. JASIF raised Bt55bn from its IPO on 16 Feb 2015 to

invest in 980k core km of fibre optic cable (FOC) network;

800k core km FOC obtained at IPO and the rest 180k during

the next two years until Feb 2017.

FOC lessor that offers lofty yieldFOC lessor that offers lofty yieldFOC lessor that offers lofty yieldFOC lessor that offers lofty yieldssss. The fund bought 800k

core km of fibre optic cable (FOC) network at IPO. As part

of the IPO deal, it has been procuring around 7.5k core km

more each month. Due to the gradual FOC transfer into the

fund, it is expected to have 23% earnings growth in FY16F

(10.7% yield) and 7% earnings growth in FY17F (11.2%

yield).

Highly secured streams of incomeHighly secured streams of incomeHighly secured streams of incomeHighly secured streams of income. JAS’s subsidiary, Triple

Three Broadband (TTB), has contractually agreed to lease

100% of the network until 22 Feb 2026.

Valuation Risks

We have a DCF-based TP of Bt10.90 (WACC: 9.7%, no

more rent from 2043 onwards). With 21% upside to our TP

and an 10.6% yield, we recommend a BUY on JASIF.

Although we believe that JASIF should trade at 20-25%

discount to DIF due to the shorter useful life of FOC

compared to towers and JASIF’s rental rate uncertainty after

Feb 2026, JASIF seems to be oversold – as evidenced by its

FY16F EV/EBITDA of 9.9x, or 37% lower than DIF’s 15.6x.

Lingering issues around JASMBB’s debacle could weigh on Lingering issues around JASMBB’s debacle could weigh on Lingering issues around JASMBB’s debacle could weigh on Lingering issues around JASMBB’s debacle could weigh on

JASIF’sJASIF’sJASIF’sJASIF’s share price performance. Nevertheless, NBTC plans

to decide the fate of the related businesses, including Digital

TV licence at MONO and fixed-broadband licence at TTB, by

the end of Apr 2016. When the implication of TTB becomes

clear, the overhang on JASIF’s share price should be

removed.

Lower rental rate is a longLower rental rate is a longLower rental rate is a longLower rental rate is a long----term risk term risk term risk term risk

When JASIF renews its lease contract with TTB, we expect

the rental rate to drop by 12% in 2027 as part of the asset

portfolio (20% of the FOC network) has a lofty monthly

rental rate of Bt750 per core km in 2016 (inflation-adjusted

annually). We believe the high rate could not be maintained

when the contract expires in 2026. If the rate drops more

than the expected 12%, our valuation could be negatively

impacted.

Source: DBS Vickers


Company Focus


SWOT Analysis

StrengthsStrengthsStrengthsStrengths WeaknessWeaknessWeaknessWeakness

• Secured streams of income from Triple T Broadband (TTB), the sole lessee, for the next 10 years (until 22 Feb 2026).

• Freehold asset with an estimated remaining useful life of 26 years.

• TTB is a strong fixed-broadband player, the number two player in terms of subscriber share, in a growing market.

• Sole reliance on TTB’s business and its ability to pay rent • Possible reduction of rental rate and/or occupancy rates when the existing agreements expire on 22 Feb 2026

OpportunitiesOpportunitiesOpportunitiesOpportunities ThreatsThreatsThreatsThreats

• Future asset injections from TTB and other operators

• Competition in the fixed-broadband market that might hinder TTB’s business

• FOC network open for leasing at Digital Telecommunications Infrastructure Fund (DIF)

• Technological advancements in the field of fixed-broadband network

Source: DBS Vickers


Company Focus


Company Background

• Corporate History.Corporate History.Corporate History.Corporate History. Jasmine Broadband Internet

Infrastructure Fund (JASIF), the second-largest infrastructure

fund in Thailand after DIF, raised Bt55bn at IPO and invested

in fibre optic cable (FOC) that had been developed and

managed by Triple T Broadband (TTB), a wholly-owned

subsidiary of SET-listed Jasmine International (JAS). The fund

then agreed to lease the network back to TTB, the fixed-

broadband operator, until 22 Feb 2026. JASIF’s FOC network

of 883,000 core km (as of 31 Dec 2015) has a nationwide

coverage of 10.23m home passes.

• RevRevRevRevenue structureenue structureenue structureenue structure.... TTB has committed to using 100% of

JASIF’s capacity since the latter’s IPO. Eighty percent of the

network capacity will be leased at the wholesale rate of

Bt425 per core km per month while the rest 20% will be

leased at the retail rate of Bt750 per month. Both agreements

will last until TTB’s fixed-broadband licence expires on 22 Feb

2026. The rental rates for both contracts are inflation-

adjusted (Thailand CPI), but the adjustment has to be in the

range of 0 and 3%.

• Shareholding structurShareholding structurShareholding structurShareholding structure.e.e.e. JAS is the sponsor of JASIF and a

major shareholder of TTB, which transferred the FOC to

JASIF. JAS is required to hold a minimum of 33.3% of JASIF

shares for three years, and this moratorium ends in Feb 2018.

The shareholding threshold will then be reduced to 19% in

the following three years. Mr. Pete Bhodaramik, who holds

25.85% of JAS, now holds 0.7% of JASIF.

• Infrastructure fund structure.Infrastructure fund structure.Infrastructure fund structure.Infrastructure fund structure. Infrastructure fund is a type

of mutual fund established to mobilise funds from general

and institutional investors to invest in Thailand’s infrastructure

projects, which include, but not limited to, rail transit

systems, water, airports and telecommunications. Investments

are recognised as costs and will be presented at fair value

without depreciation and amortisation. The SEC stipulates

that the dividend payout ratio shall not be less than 90% of

the distributable income, with the withholding tax on

dividends being exempted for 10 years. Also, infrastructure

funds have no corporate tax liability, as they are exempted

from corporate income tax in Thailand.

Sales Trend Profitability Trend

Source: JASIF, DBS Vickers

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

0

1,000

2,000

3,000

4,000

5,000

6,000

2015A 2016F 2017F 2018F

Bt m

Total Revenue Revenue Growth (%) (YoY)

4,125

4,325

4,525

4,725

4,925

5,125

5,325

2015A 2016F 2017F 2018F

Bt m

Operating EBIT Pre tax Profit Net Profit


Company Focus


Main Lease Agreement and Rental Assurance Agreement

Length of Leased OFCsLength of Leased OFCsLength of Leased OFCsLength of Leased OFCs Lease PeriodLease PeriodLease PeriodLease Period Rental RateRental RateRental RateRental Rate

Main Lease Main Lease Main Lease Main Lease

AgreementAgreementAgreementAgreement

80% of the FOC80% of the FOC80% of the FOC80% of the FOC, , , , totallingtotallingtotallingtotalling

approximately 784,000 core approximately 784,000 core approximately 784,000 core approximately 784,000 core

kilometrkilometrkilometrkilometreeees, includs, includs, includs, includeseseses::::

1.1.1.1. 640,000 core 640,000 core 640,000 core 640,000 core kilometreskilometreskilometreskilometres

which are equivalent to which are equivalent to which are equivalent to which are equivalent to

80% of the Existing 80% of the Existing 80% of the Existing 80% of the Existing

OFCs; andOFCs; andOFCs; andOFCs; and



80% of the Future 80% of the Future 80% of the Future 80% of the Future FOCFOCFOCFOC

Approximately 11 years, Approximately 11 years, Approximately 11 years, Approximately 11 years,

ending February 22, 2026ending February 22, 2026ending February 22, 2026ending February 22, 2026

BtBtBtBt425 per core 425 per core 425 per core 425 per core kilometrekilometrekilometrekilometre per month per month per month per month

until December 31, 2015 and will be until December 31, 2015 and will be until December 31, 2015 and will be until December 31, 2015 and will be

increased each year in line with the increased each year in line with the increased each year in line with the increased each year in line with the

change in Thailand CPI announced by change in Thailand CPI announced by change in Thailand CPI announced by change in Thailand CPI announced by

the Ministry of Commerce with a cap the Ministry of Commerce with a cap the Ministry of Commerce with a cap the Ministry of Commerce with a cap

of 3%of 3%of 3%of 3%

Rental Rental Rental Rental

AssuranceAssuranceAssuranceAssurance


20% of the FOC20% of the FOC20% of the FOC20% of the FOC, , , , totallingtotallingtotallingtotalling

approximately 196,000 core approximately 196,000 core approximately 196,000 core approximately 196,000 core

kilometreskilometreskilometreskilometres, includ, includ, includ, includeseseses::::



20% of the Existing 20% of the Existing 20% of the Existing 20% of the Existing

OFCs; andOFCs; andOFCs; andOFCs; and



20% of the Future 20% of the Future 20% of the Future 20% of the Future FOCFOCFOCFOC

Three years, renewable Three years, renewable Three years, renewable Three years, renewable at at at at

JASIF's option for additional JASIF's option for additional JASIF's option for additional JASIF's option for additional

threethreethreethree----year periods until the year periods until the year periods until the year periods until the

expiration of the Main Lease expiration of the Main Lease expiration of the Main Lease expiration of the Main Lease


BtBtBtBt750 per core 750 per core 750 per core 750 per core kilometrekilometrekilometrekilometre per month per month per month per month

until December 31, 2015 and will be until December 31, 2015 and will be until December 31, 2015 and will be until December 31, 2015 and will be

increased each year in line with the increased each year in line with the increased each year in line with the increased each year in line with the

change in Thailand CPI announced by change in Thailand CPI announced by change in Thailand CPI announced by change in Thailand CPI announced by

the Ministrthe Ministrthe Ministrthe Ministry of Commerce with a cap y of Commerce with a cap y of Commerce with a cap y of Commerce with a cap

of 3%of 3%of 3%of 3%

Source: JASIF, DBC Vickers


Company Focus


JASIF’s Management Structure



Company Focus


Competitive Strengths • Secured streams of incomeSecured streams of incomeSecured streams of incomeSecured streams of income.... TTB has contractually agreed

to lease 100% of JASIF’s capacity until 22 Feb 2026, which

coincides with the expiration of TTB’s fixed-broadband licence

(type 3), thus the income streams are highly secured for the

next 10 years.

• Freehold asset with long useful lifFreehold asset with long useful lifFreehold asset with long useful lifFreehold asset with long useful life.e.e.e. We expect TTB to

renew its business licence and continue using JASIF’s FOC

network until 2042 as we assume 30 years of useful life for

fibre optic cable, thus implying 26 years of remaining useful

life. We have discovered a number of prominent estimates for

FOC’s useful life, as follows:

i) The Federal Communications Commission, an

independent agency of the US government, has

assigned a projected life range of 25 to 30 years on all

non-metallic cables, including aerial, underground,

buried or intra-building.

ii) Corning, a leading manufacturer of optical fibre, states

that the intended service life is in excess of 25 years.

iii) Technology Futures, Inc., which provides depreciation

and valuation services for major telecommunication

carriers, recommended in 2008 that the depreciation life

for newly-installed fibre optic cable is 20 to 25 years.

Expected useful life of cable assets

SourceSourceSourceSource Categories as stated in reportsCategories as stated in reportsCategories as stated in reportsCategories as stated in reports Projected Life (Years)Projected Life (Years)Projected Life (Years)Projected Life (Years)

Federal Communication Federal Communication Federal Communication Federal Communication CommissionCommissionCommissionCommission

Aerial Cable - Metallic 20 - 25

Aerial Cable - Non Metallic 25 - 30

Underground Cable - Metallic 25 - 30

Underground Cable - Non Metallic 25 - 30

Buried Cable - Metallic 20 - 26

Buried Cable - Non Metallic 25 - 30

CorningCorningCorningCorning Fibre Optic Cables in General > 25

Technology Futures, IncTechnology Futures, IncTechnology Futures, IncTechnology Futures, Inc Newly Installed Fibre Optic Cable 20 - 25

Source: Expected Life Study: Telecommunication and Cable Assets by Nevada Department of Taxation, DBC Vickers


Company Focus


• TTB, the lessee, is a TTB, the lessee, is a TTB, the lessee, is a TTB, the lessee, is a strong player in fixedstrong player in fixedstrong player in fixedstrong player in fixed----broadband broadband broadband broadband

market.market.market.market. TTB is a strong player in a growing industry. The

fixed-broadband market has seen 15% CAGR in the number

of subscribers over the last five years (2010-15) while TTB has

seen 21% CAGR in its clients and revenue over the same

period. The company has been taking market share from

TOT, a state-owned telecom, and smaller players; TTB

overtook TOT in 2014 as the number-two player in terms of

number of subscribers while the number one, TRUE, remains

strong. TRUE, TTB and TOT are the leading players with 37%,

31% and 21% market shares, respectively. AIS Wifi, a

subsidiary of ADVANC, had 0.7% market share (44k

subscribers) at the end of 2015 while the rest 9.6% is from

other small players.

• Thailand is slightly behind the Thailand is slightly behind the Thailand is slightly behind the Thailand is slightly behind the world in termworld in termworld in termworld in termssss of fixedof fixedof fixedof fixed----

broadband subscription.broadband subscription.broadband subscription.broadband subscription. Thailand had 6.4m fixed-broadband

subscribers (9.5% of population) at the end of 2015, and the

Office of The National Broadcasting and Telecommunications

Commission (NBTC) forecasts that the number will rise to

6.70m (9.9% of population) in 2016 and 7.23m (10.7% of

population) in 2017. The global fixed-broadband penetration

is now 10.84% of population, with Europe (29.60%) and the

Americas (17.97%) leading the pack.

Fixed-Broadband Market: Number of Subscribers Triple T Broadband: Number of Subscribers

Fixed-Broadband Market Shares By Number Of Subscribers

Estimated Fixed-Broadband Penetration (% Of Population)

Source: NBTC, JASIF, DBC Vickers


Company Focus


Growth Strategies • Gradual FOC transfers to boost FY16Gradual FOC transfers to boost FY16Gradual FOC transfers to boost FY16Gradual FOC transfers to boost FY16----17F growth17F growth17F growth17F growth.... TTB is

obligated to continue transferring 7,500 core km of FOC per

month to JASIF; as a result, the fund should end FY16F with

973k core km of cable, up from 883k at end-2015 and 800k

at IPO. The new fibre capacity will be coming in until Feb

2017, leading us to project 23% and 7% earnings growth in

FY16F and FY17F, respectively.

• Growth after FY17F depends on increase in rental rateGrowth after FY17F depends on increase in rental rateGrowth after FY17F depends on increase in rental rateGrowth after FY17F depends on increase in rental rate....

With no new asset injections, we expect net investment

income to grow only 1.9% in FY18F and 1.5% p.a. from

FY19F onwards. Although we assume the rental increase of

only 1.5% per year, the increase is, in fact, tied to the change

in Thailand’s CPI with a floor/ceiling of 0/3%.

• Willing to buy all kinds of telecom infrastructure.Willing to buy all kinds of telecom infrastructure.Willing to buy all kinds of telecom infrastructure.Willing to buy all kinds of telecom infrastructure. The

fund is open to new investments in any kind of

telecommunications infrastructure, so new asset injections

with strong yields and IRR could offer positive surprises down

the road. Preliminarily, JASIF requires a project IRR of no less

than 8%.

FOC at Yearend Main Assumptions

2016F 2016F 2016F 2016F 2017F 2017F 2017F 2017F 2018F 2018F 2018F 2018F

FOC (core km) 973,000 980,500 980,500

Increase in rental rate

0.0% 1.5% 1.5%

Occupancy rate 100% 100% 100%

Net Investment Income Yield (Dividend + Capital Reduction)



Company Focus


Key Risks

• TTB’s licenTTB’s licenTTB’s licenTTB’s licencccce renewal in 2026e renewal in 2026e renewal in 2026e renewal in 2026.... JAS Mobile Broadband

(JASMBB) won a 900MHz licence in Dec 2015, but it failed to

show up with the first instalment payment and the required

bank guarantee before the 31 Mar 2016 deadline.

Consequently, the market has been concerned over two

issues and their impact on JASIF:

i) Additional monetary penalties for JASMBB, and

ii) The potential revocation of JAS’s existing licences (i.e.

TTB’s fixed-broadband licence)

Firstly, the regulator, NBTC, has stated in its pre-auction

document that it will withhold the Bt644m down payment for

the 900MHz licence in the event of default, and there is no

other penalty. Hence, NBTC will have to sue JASMBB to obtain

additional penalty – if any. Secondly, TTB is a separate legal

entity that has done nothing wrong as a licence holder, so the

outright revocation of the fixed-broadband licence (expiring

on 22 Feb 2026) is highly unlikely, especially when the

revocation has not been stated in the pre-auction documents.

NBTC will decide whether to slap more penalties on JASMBB

and/or JAS group within this month.

• Lower rental rate Lower rental rate Lower rental rate Lower rental rate after 2026.after 2026.after 2026.after 2026. As mentioned earlier, TTB

has committed to leasing JASIF’s asset until 22 Feb 2026, so

there is a risk of lower income when the rental contracts have

to be renewed. We currently assume 21% y-o-y decline in

rental income in 2026 on the back of the 12% fall in rental

rate and lower occupancy rate. The occupancy rate is

projected to fall from 100% in 2025 to 90% in 2026, before

reaching 80% in 2031.

• FOC relocation costFOC relocation costFOC relocation costFOC relocation cost and duct rentand duct rentand duct rentand duct rent. JASIF could be

responsible for the relocation cost from aerial cable to

underground cable in compliance with the government

policy. Currently, the underground project – Nonsee Phase I –

to be up for bidding in Apr this year includes only electricity

cable (no fibre optic). According to the telco companies we

have talked to, it might take 2-3 years before the relocation

process of fibre starts because the Bangkok Metropolitan

Administration (BMA) has not figured out which parties will

be responsible for the installation of underground duct that

the fibre will go through; the installer will be also be the

lessor of the ducts. The investment in ducts could be made by

the state enterprises (CAT or TOT) or a joint investment

initiative between public and private companies.

Rental Income 2024-28F Rental Rate 2024-28F

Occupancy Rate 2024-28F



Company Focus


Valuation and Recommendation

• Capital management.Capital management.Capital management.Capital management. At IPO, JASIF received from TTB an

advance payment for the last three months of rent ending 22

Feb 2026. Management intends to eliminate such excess

liquidity via capital reduction, resulting in 111% (Bt0.82),

104% (Bt0.95) and 102% (Bt1.00) distribution payout ratios

in FY15, FY16F and FY17F, respectively.

• Initiate with BUY.Initiate with BUY.Initiate with BUY.Initiate with BUY. We initiate coverage on JASIF with a

BUY call and DCF-based target price of Bt10.9 (9.7% WACC

and no more rent from 2043 onwards). We like JASIF for i) its

strong earnings growth in FY16-17F, ii) steady streams of

dividends, iii) FY16F net-cash position, and iv) TTB’s dominant

position in the fixed-broadband market. Deeper fixed-

broadband penetration and TTB’s earnings growth will also

ensure its ability to pay rent to JASIF.

• ValuationValuationValuationValuation. Our base-case DCF valuation of Bt10.90 is

based on 9.7% WACC and no more rent from 2043 onwards

as we assume 26 years’ remaining useful life for its FOC

network. Since the rental contracts will have to be renewed

in 2026, we assume a 21% decrease in rental income for the

year before rising 1.5% p.a. until 2042, in line with the

projected inflation.

Our best-case scenario points to Bt12.20 TP, assuming

uninterrupted increases in rental income until 2042. The

worst-case TP is Bt7.70 if we assume that TTB cannot renew

the lease contracts in 2026, which is highly likely for the

dominant fixed-broadband player.

Capital Reduction from Advance Rent of Bt816m WACC Calculation

To be paid in To be paid in To be paid in To be paid in 2015201520152015 2016201620162016 2017201720172017 2018201820182018

Btm 461 225 130 0 Resulting dividend payout ratio 111% 104% 102% 100%

Resulting yield 9.6% 11.1% 11.7% 11.6%

WACC CalculationWACC CalculationWACC CalculationWACC Calculation

Beta 0.744

Rf 3.0%

Rm 12.0%

Cost of Equity 9.7%

Equity weight 100%

WACCWACCWACCWACC 9.7%9.7%9.7%9.7%

Scenario Analysis

Time PeriodTime PeriodTime PeriodTime Period Base CaseBase CaseBase CaseBase Case Best CaseBest CaseBest CaseBest Case Worst CaseWorst CaseWorst CaseWorst Case

Occupancy RateOccupancy RateOccupancy RateOccupancy Rate

2016 2016 2016 2016 ---- 2025202520252025 100% 100% 100%

2026 2026 2026 2026 ---- 2042204220422042 declining to 80%

by 2031 100% 0%

2043 onward2043 onward2043 onward2043 onward [NO MORE RENT BY TTB]

Increase in Rental Rate per YearIncrease in Rental Rate per YearIncrease in Rental Rate per YearIncrease in Rental Rate per Year

2016 2016 2016 2016 ---- 2025202520252025 1.5% 1.50% 1.50%

2026 2026 2026 2026 ---- 2042204220422042 0.7% 1.50% NO RENT

2043 onward2043 onward2043 onward2043 onward [NO MORE RENT BY TTB]

Salvage value at endSalvage value at endSalvage value at endSalvage value at end----2042204220422042

0

Target priceTarget priceTarget priceTarget price 10.9010.9010.9010.90 12.20 7.70

Upside/(Downside)Upside/(Downside)Upside/(Downside)Upside/(Downside) 27.5% 42.7% -9.9%

IRR @ Bt8.50 market priceIRR @ Bt8.50 market priceIRR @ Bt8.50 market priceIRR @ Bt8.50 market price 11.6% 13.1% 4.4%



Company Focus


Peer comparison

• ReturnReturnReturnReturn----andandandand----risk profile is similar to DIF’s.risk profile is similar to DIF’s.risk profile is similar to DIF’s.risk profile is similar to DIF’s. JASIF’s only

comparable company in Thailand is Digital

Telecommunications Infrastructure Fund (DIF), but JASIF’s

asset structure is simpler; JASIF has freehold ownership of

FOC network while DIF has the rights to net revenue,

freehold and leasehold ownerships of telecom towers, tower-

to-tower fibre and fixed-broadband FOC. It is worth noting

that DIF’s portfolio mix is superior to JASIF’s, as towers have

longer useful life (c.50 years) than FOC. Nevertheless, both

face similar risks as they will have to renew their lease

contracts in 2026-27.

• JASIF is trading at JASIF is trading at JASIF is trading at JASIF is trading at steepsteepsteepsteep discount to DIF.discount to DIF.discount to DIF.discount to DIF. We believe that

the market has become overly concerned about the impact of

JASMBB’s default on JASIF, resulting in a current valuation of

FY16F EV/EBITDA of 9.9x – representing a 37% discount to

DIF’s EV/EBITDA of 15.6x. We believe that the fair discount

should be around 20% to take into account the longer tower

life for DIF; the 20% discount implies a hypothetical target

price of Bt11.30 per share.


Company Focus


Key Assumptions

FY FY FY FY DecDecDecDec 10 Feb 1510 Feb 1510 Feb 1510 Feb 15 2015201520152015AAAA 2016201620162016FFFF 2017201720172017FFFF 2018201820182018FFFF

FOC at year end (core km)

800,000 883,000 973,000 980,500 980,500

Increase in rental rate 0% 1.5% 1.5%

Occupancy rate 100% 100% 100%

TTB has been building and transferring FOC to JASIF (c.a. 7.5k core km per month). The transfer will end in Feb 2017


Company Focus


Income Statement (Btm)

FY FY FY FY DecDecDecDec 2015201520152015AAAA 2016201620162016FFFF 2017201720172017FFFF 2018201820182018FFFF Revenue 4,377 5,457 5,829 5,940

Cost of Goods Sold (184) (355) (379) (386)

Gross ProfitGross ProfitGross ProfitGross Profit 4,1934,1934,1934,193 5,1025,1025,1025,102 5,4515,4515,4515,451 5,5545,5545,5545,554

Other Opng (Exp)/Inc (67.4) (98.2) (105) (107)

Operating ProfitOperating ProfitOperating ProfitOperating Profit 4,1264,1264,1264,126 5,0045,0045,0045,004 5,3465,3465,3465,346 5,4475,4475,4475,447

Other Non Opg (Exp)/Inc 0.0 0.0 0.0 0.0

Associates & JV Inc 0.0 0.0 0.0 0.0

Net Interest (Exp)/Inc (37.8) 12.6 24.4 24.4

Exceptional Gain/(Loss) 641 0.0 0.0 0.0

PrePrePrePre----tax Profittax Profittax Profittax Profit 4,7294,7294,7294,729 5,0165,0165,0165,016 5,3705,3705,3705,370 5,4715,4715,4715,471

Tax 0.0 0.0 0.0 0.0

Minority Interest 0.0 0.0 0.0 0.0

Preference Dividend 0.0 0.0 0.0 0.0

Net ProfitNet ProfitNet ProfitNet Profit 4,7294,7294,7294,729 5,0165,0165,0165,016 5,3705,3705,3705,370 5,4715,4715,4715,471

Net Profit before Except. 4,088 5,016 5,370 5,471

EBITDA 4,126 5,004 5,346 5,447

Growth

Revenue Gth (%) N/A 24.7 6.8 1.9

EBITDA Gth (%) nm 21.3 6.8 1.9

Opg Profit Gth (%) nm 21.3 6.8 1.9

Net Profit Gth (Pre-ex) (%)

nm 23.7 16.1 3.9

Margins & Ratio

Gross Margins (%) 95.8 93.5 93.5 93.5

Opg Profit Margin (%) 94.3 91.7 91.7 91.7

Net Profit Margin (%) 108.0 91.9 92.1 92.1

ROAE (%) N/A 8.9 9.5 9.7

ROA (%) N/A 8.4 9.4 9.6

ROCE (%) N/A 8.7 9.5 9.7

Div Payout Ratio (%) 95.8 104.5 102.4 100.0

Net Interest Cover (x) 109.3 NM NM NM

Source: Company, DBS Vickers

Margins Trend

87.0%

92.0%

97.0%

102.0%

107.0%

112.0%

2015A 2016F 2017F 2018F

Operating Margin % Net Income Margin %

JASIF started booking revenue from 10 Feb 2015 with 800,000 core km at the IPO.

The gradual transfer of FOC will lead to increases in annual income. Revenue growth from FY19F will be purely based on rental hike if there is no new acquisition.


Company Focus


Quarterly / Interim Income Statement (Btm)

FY FY FY FY DecDecDecDec 1Q1Q1Q1Q2015201520152015 2Q2Q2Q2Q2015201520152015 3Q3Q3Q3Q2015201520152015 4Q4Q4Q4Q2015201520152015 Revenue 648 1,210 1,243 1,276

Cost of Goods Sold (28.4) (50.3) (53.1) (52.3)

Gross ProfitGross ProfitGross ProfitGross Profit 620620620620 1,1601,1601,1601,160 1,1901,1901,1901,190 1,2241,2241,2241,224

Other Oper. (Exp)/Inc (9.8) (18.6) (19.3) (19.7)

Operating ProfitOperating ProfitOperating ProfitOperating Profit 610610610610 1,1411,1411,1411,141 1,1711,1711,1711,171 1,2041,2041,2041,204

Other Non Opg (Exp)/Inc 0.04 0.02 0.0 (0.1)

Associates & JV Inc 0.0 0.0 0.0 0.0

Net Interest (Exp)/Inc (4.6) (10.6) (10.7) (11.8)

Exceptional Gain/(Loss) 0.38 (0.2) (0.2) 641

PrePrePrePre----tax Profittax Profittax Profittax Profit 606606606606 1,1301,1301,1301,130 1,1601,1601,1601,160 1,8331,8331,8331,833

Tax 0.0 0.0 0.0 0.0

Minority Interest 0.0 0.0 0.0 0.0

Net ProfitNet ProfitNet ProfitNet Profit 606606606606 1,1301,1301,1301,130 1,1601,1601,1601,160 1,8331,8331,8331,833

Net profit bef Except. 605 1,130 1,160 1,192

EBITDA 610 1,141 1,171 1,204

Growth

Revenue Gth (%) N/A 86.7 2.7 2.7

EBITDA Gth (%) nm 87.1 2.6 2.9

Opg Profit Gth (%) nm 87.1 2.6 2.9

Net Profit Gth (Pre-ex) (%)

nm nm nm nm

Margins

Gross Margins (%) 95.6 95.8 95.7 95.9

Opg Profit Margins (%) 94.1 94.3 94.2 94.4

Net Profit Margins (%) 93.5 93.4 93.3 143.7

Revenue Trend


-10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

200

400

600

800

1,000

1,200

1,400

3Q2013

4Q2013

1Q2014

2Q2014

3Q2014

4Q2014

1Q2015

2Q2015

3Q2015

4Q2015

Revenue Revenue Growth % (QoQ)


Company Focus


Balance Sheet (Btm)

FY FY FY FY DecDecDecDec 2015201520152015AAAA 2016201620162016FFFF 2017201720172017FFFF 2018201820182018FFFF Net Fixed Assets 55,641 55,641 55,641 55,641

Invts in Associates & JVs 0.0 0.0 0.0 0.0

Other LT Assets 0.0 0.0 0.0 0.0

Cash & ST Invts 2,120 1,599 1,543 1,539

Inventory 0.0 0.0 0.0 0.0

Debtors 1.45 1.45 1.55 1.58

Other Current Assets 3,854 4.00 4.27 4.35

Total AssetsTotal AssetsTotal AssetsTotal Assets 61,61661,61661,61661,616 57,24557,24557,24557,245 57,19057,19057,19057,190 57,18657,18657,18657,186

ST Debt

3,850 0.0 0.0 0.0

Creditor 80.6 145 155 158

Other Current Liab 817 817 817 817

LT Debt 0.0 0.0 0.0 0.0

Other LT Liabilities 0.0 0.0 0.0 0.0

Shareholder’s Equity 56,869 56,283 56,218 56,211

Minority Interests 0.0 0.0 0.0 0.0

Total Cap. & Liab.Total Cap. & Liab.Total Cap. & Liab.Total Cap. & Liab. 61,61661,61661,61661,616 57,24557,24557,24557,245 57,19057,19057,19057,190 57,18557,18557,18557,185

Non-Cash Wkg. Capital 2,958 (956) (966) (969)

Net Cash/(Debt) (1,730) 1,599 1,543 1,539

Debtors Turn (avg days) N/A 0.1 0.1 0.1

Creditors Turn (avg days) N/A 91.0 113.2 115.9

Inventory Turn (avg days) N/A N/A N/A N/A

Asset Turnover (x) NM 0.1 0.1 0.1

Current Ratio (x) 1.3 1.7 1.6 1.6

Quick Ratio (x) 1.3 1.7 1.6 1.6

Net Debt/Equity (X) 0.0 CASH CASH CASH

Net Debt/Equity ex MI (X) 0.0 CASH CASH CASH

Capex to Debt (%) 1,428.6 N/A N/A N/A


Asset Breakdown

The debt was paid off 1Q16F.


Company Focus


Cash Flow Statement (Btm)

FY FY FY FY DecDecDecDec 2015201520152015AAAA 2016201620162016FFFF 2017201720172017FFFF 2018201820182018FFFF Pre-Tax Profit 4,729 5,016 5,370 5,471

Dep. & Amort. 0.0 0.0 0.0 0.0

Tax Paid 0.0 0.0 0.0 0.0

Assoc. & JV Inc/(loss) 0.0 0.0 0.0 0.0

Chg in Wkg.Cap. (2,976) 3,914 9.54 2.82

Other Operating CF (573) 17.1 0.0 0.0

Net Operating CFNet Operating CFNet Operating CFNet Operating CF 1,1801,1801,1801,180 8,9488,9488,9488,948 5,3805,3805,3805,380 5,4745,4745,4745,474

Capital Exp.(net) (55,000) 0.0 0.0 0.0

Other Invts.(net) (1,960) 600 0.0 0.0

Invts in Assoc. & JV 0.0 0.0 0.0 0.0

Div from Assoc & JV 0.0 0.0 0.0 0.0

Other Investing CF 0.0 0.0 0.0 0.0

Net Investing CFNet Investing CFNet Investing CFNet Investing CF (56,960)(56,960)(56,960)(56,960) 600600600600 0.00.00.00.0 0.00.00.00.0

Div Paid (2,860) (5,602) (5,435) (5,478)

Chg in Gross Debt 3,850 (3,850) 0.0 0.0

Capital Issues 55,000 0.0 0.0 0.0

Other Financing CF (66.0) (17.1) 0.0 0.0

Net Financing CFNet Financing CFNet Financing CFNet Financing CF 55,92455,92455,92455,924 (9,469)(9,469)(9,469)(9,469) (5,435)(5,435)(5,435)(5,435) (5,478)(5,478)(5,478)(5,478)

Currency Adjustments 0.0 0.0 0.0 0.0

Chg in Cash 144 78.8 (55.8) (4.4)

Opg CFPS (Bt) 0.76 0.92 0.98 0.99

Free CFPS (Bt) (9.8) 1.63 0.98 1.00


Capital Expenditure

0.0

10,000.0

20,000.0

30,000.0

40,000.0

50,000.0

60,000.0

2015A 2016F 2017F 2018F

Capital Expenditure (-)

Btm


Company Focus


DBS Vickers recommendations are based an Absolute Total Return* Rating system, defined as follows:

STRONG BUYSTRONG BUYSTRONG BUYSTRONG BUY (>20% total return over the next 3 months, with identifiable share price catalysts within this time frame)

BUY BUY BUY BUY (>15% total return over the next 12 months for small caps, >10% for large caps)

HOLDHOLDHOLDHOLD (-10% to +15% total return over the next 12 months for small caps, -10% to +10% for large caps)

FULLY VALUEDFULLY VALUEDFULLY VALUEDFULLY VALUED (negative total return i.e. > -10% over the next 12 months)

SELL SELL SELL SELL (negative total return of > -20% over the next 3 months, with identifiable catalysts within this time frame)

Share price appreciation + dividends

GENERAL DISCLOSURE/DISCLAIMER GENERAL DISCLOSURE/DISCLAIMER GENERAL DISCLOSURE/DISCLAIMER GENERAL DISCLOSURE/DISCLAIMER

This report is prepared by This report is prepared by This report is prepared by This report is prepared by DBS Vickers Securities (Thailand) Co, LtdDBS Vickers Securities (Thailand) Co, LtdDBS Vickers Securities (Thailand) Co, LtdDBS Vickers Securities (Thailand) Co, Ltd. . . . This report is solely intended for the clients of DBS Bank Ltd and DBS Vickers

Securities (Singapore) Pte Ltd, its respective connected and associated corporations and affiliates (collectively, the “DBS Vickers Group”) only and

no part of this document may be (i) copied, photocopied or duplicated in any form or by any means or (ii) redistributed without the prior written

consent of DBS Vickers Securities (Thailand) Co, Ltd.

The research set out in this report is based on information obtained from sources believed to be reliable, but we (which collectively refers to DBS

Bank Ltd., its respective connected and associated corporations, affiliates and their respective directors, officers, employees and agents (collectively,

the “DBS Group”)) do not make any representation or warranty as to its accuracy, completeness or correctness. Opinions expressed are subject to

change without notice. This document is prepared for general circulation. Any recommendation contained in this document does not have regard

to the specific investment objectives, financial situation and the particular needs of any specific addressee. This document is for the information of

addressees only and is not to be taken in substitution for the exercise of judgement by addressees, who should obtain separate independent legal

or financial advice. The DBS Group accepts no liability whatsoever for any direct, indirect and/or consequential loss (including any claims for loss of

profit) arising from any use of and/or reliance upon this document and/or further communication given in relation to this document. This

document is not to be construed as an offer or a solicitation of an offer to buy or sell any securities. The DBS Group, along with its affiliates and/or

persons associated with any of them may from time to time have interests in the securities mentioned in this document. The DBS Group may have

positions in, and may effect transactions in securities mentioned herein and may also perform or seek to perform broking, investment banking and

other banking services for these companies.

Any valuations, opinions, estimates, forecasts, ratings or risk assessments herein constitutes a judgment as of the date of this report, and there can

be no assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk assessments.

The information in this document is subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed and it

may not contain all material information concerning the company (or companies) referred to in this report.

The valuations, opinions, estimates, forecasts, ratings or risk assessments described in this report were based upon a number of estimates and

assumptions and are inherently subject to significant uncertainties and contingencies. It can be expected that one or more of the estimates on

which the valuations, opinions, estimates, forecasts, ratings or risk assessments were based will not materialize or will vary significantly from actual

results. Therefore, the inclusion of the valuations, opinions, estimates, forecasts, ratings or risk assessments described herein IS NOT TO BE RELIED

UPON as a representation and/or warranty by the DBS Group (and/or any persons associated with the aforesaid entities), that:

(a) such valuations, opinions, estimates, forecasts, ratings or risk assessments or their underlying assumptions will be achieved, and

(b) there is any assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk

assessments stated therein.

Any assumptions made in this report that refers to commodities, are for the purposes of making forecasts for the company (or companies)

mentioned herein. They are not to be construed as recommendations to trade in the physical commodity or in the futures contract relating to the

commodity referred to in this report.

DBS Vickers Securities (USA) Inc ("DBSVUSA")"), a U.S.-registered broker-dealer, does not have its own investment banking or research

department, has not participated in any public offering of securities as a manager or co-manager or in any other investment banking transaction

in the past twelve months and does not engage in market-making.

ANALYST CERTIFICATIONANALYST CERTIFICATIONANALYST CERTIFICATIONANALYST CERTIFICATION

The research analyst(s) primarily responsible for the content of this research report, in part or in whole, certifies that the views about the

companies and their securities expressed in this report accurately reflect his/her personal views. The analyst(s) also certifies that no part of his/her

compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report. As of 20 Apr 2016,

the analyst(s) and his/her spouse and/or relatives who are financially dependent on the analyst(s), do not hold interests in the securities

recommended in this report (“interest” includes direct or indirect ownership of securities).

COMPANYCOMPANYCOMPANYCOMPANY----SPECIFIC / REGULATORY DISCLOSURES SPECIFIC / REGULATORY DISCLOSURES SPECIFIC / REGULATORY DISCLOSURES SPECIFIC / REGULATORY DISCLOSURES

1.1.1.1. DBS Vickers Securities (Thailand) Co, Ltd and its subsidiaries do not have a proprietary position in the securities recommended in this report

as of 19 Apr 2016

2.2.2.2. Compensation for investment banking services:Compensation for investment banking services:Compensation for investment banking services:Compensation for investment banking services:

DBSVUSA does not have its own investment banking or research department, nor has it participated in any public offering of securities as a

manager or co-manager or in any other investment banking transaction in the past twelve months. Any US persons wishing to obtain further

information, including any clarification on disclosures in this disclaimer, or to effect a transaction in any security discussed in this document

should contact DBSVUSA exclusively.


Company Focus


RESTRICTIONS ON DISTRIBUTION RESTRICTIONS ON DISTRIBUTION RESTRICTIONS ON DISTRIBUTION RESTRICTIONS ON DISTRIBUTION

GeneralGeneralGeneralGeneral This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

AustraliaAustraliaAustraliaAustralia This report is being distributed in Australia by DBS Bank Ltd. (“DBS”) or DBS Vickers Securities (Singapore) Pte Ltd (“DBSVS”), both of which are exempted from the requirement to hold an Australian Financial Services Licence under the Corporation Act 2001 (“CA”) in respect of financial services provided to the recipients. Both DBS and DBSVS are regulated by the Monetary Authority of Singapore under the laws of Singapore, which differ from Australian laws. Distribution of this report is intended only for “wholesale investors” within the meaning of the CA.

Hong KongHong KongHong KongHong Kong This report is being distributed in Hong Kong by DBS Vickers (Hong Kong) Limited which is licensed and regulated by the Hong Kong Securities and Futures Commission.

IndonesiaIndonesiaIndonesiaIndonesia This report is being distributed in Indonesia by PT DBS Vickers Securities Indonesia.

MalaysiaMalaysiaMalaysiaMalaysia This report is distributed in Malaysia by AllianceDBS Research Sdn Bhd ("ADBSR"). Recipients of this report, received from ADBSR are to contact the undersigned at 603-2604 3333 in respect of any matters arising from or in connection with this report. In addition to the General Disclosure/Disclaimer found at the preceding page, recipients of this report are advised that ADBSR (the preparer of this report), its holding company Alliance Investment Bank Berhad, their respective connected and associated corporations, affiliates, their directors, officers, employees, agents and parties related or associated with any of them may have positions in, and may effect transactions in the securities mentioned herein and may also perform or seek to perform broking, investment banking/corporate advisory and other services for the subject companies. They may also have received compensation and/or seek to obtain compensation for broking, investment banking/corporate advisory and other services from the subject companies.

Wong Ming Tek, Executive Director, ADBSR

SingaporeSingaporeSingaporeSingapore This report is distributed in Singapore by DBS Bank Ltd (Company Regn. No. 196800306E) or DBSVS (Company Regn No. 198600294G), both of which are Exempt Financial Advisers as defined in the Financial Advisers Act and regulated by the Monetary Authority of Singapore. DBS Bank Ltd and/or DBSVS, may distribute reports produced by its respective foreign entities, affiliates or other foreign research houses pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, DBS Bank Ltd accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact DBS Bank Ltd at 6327 2288 for matters arising from, or in connection with the report.

ThailandThailandThailandThailand This report is being distributed in Thailand by DBS Vickers Securities (Thailand) Co Ltd. Research reports distributed are only intended for institutional clients only and no other person may act upon it.

United KingdomUnited KingdomUnited KingdomUnited Kingdom This report is being distributed in the UK by DBS Vickers Securities (UK) Ltd, who is an authorised person in the meaning of the Financial Services and Markets Act and is regulated by The Financial Conduct Authority. Research distributed in the UK is intended only for institutional clients.

DubaiDubaiDubaiDubai

This research report is being distributed in The Dubai International Financial Centre (“DIFC”) by DBS Bank Ltd., (DIFC Branch) having its office at PO Box 506538, 3rd Floor, Building 3, East Wing, Gate Precinct, Dubai International Financial Centre (DIFC), Dubai, United Arab Emirates. DBS Bank Ltd., (DIFC Branch) is regulated by The Dubai Financial Services Authority. This research report is intended only for professional clients (as defined in the DFSA rulebook) and no other person may act upon it.

United StatesUnited StatesUnited StatesUnited States This report was prepared by DBS Vickers Securities (Thailand) Co, Ltd. DBSVUSA did not participate in its preparation. The research analyst(s) named on this report are not registered as research analysts with FINRA and are not associated persons of DBSVUSA. The research analyst(s) are not subject to FINRA Rule 2241 restrictions on analyst compensation, communications with a subject company, public appearances and trading securities held by a research analyst. This report is being distributed in the United States by DBSVUSA, which accepts responsibility for its contents. This report may only be distributed to Major U.S. Institutional Investors (as defined in SEC Rule 15a-6) and to such other institutional investors and qualified persons as DBSVUSA may authorize. Any U.S. person receiving this report who wishes to effect transactions in any securities referred to herein should contact DBSVUSA directly and not its affiliate.

Other jurisdictionsOther jurisdictionsOther jurisdictionsOther jurisdictions In any other jurisdictions, except if otherwise restricted by laws or regulations, this report is intended only for qualified, professional, institutional or sophisticated investors as defined in the laws and regulations of such jurisdictions.

DBS Vickers Securities (Thailand) Co, LtdDBS Vickers Securities (Thailand) Co, LtdDBS Vickers Securities (Thailand) Co, LtdDBS Vickers Securities (Thailand) Co, Ltd 989 Siam Tower, 9th, 14th-15th Floor,

Rama 1 Road, Pathumwan, Bangkok Thailand 10330 Tel. 66 2 657 7831, Fax: 66 2 658 1269

thailand company focus jasmine broadband internet...

Documents