Jasmine International

Jasmine International Plc (JAS)
 
Jasmine’s CEO targets 2 mn ADSL subscribers, 13% above our estimate, and 1m WiFi subs, 150% above our estimate, in FY15. We still like its fixed broadband story on the back of robust broadband demand growth, muted competition and high operating leverage. While the CEO’s growth projections are higher than ours, we maintain our estimates for now as we wait and see how the telco will execute. We maintain our DCF-based target price (10% WACC, 2% LTG) and Outperform call on the back of a likely earnings surprise and solid WiFi take-up if Jasmine seals the deal with DTAC.