Jasmine International

Jasmine International Plc (JAS)
 

Jasmine, Thailand’s third largest fixed broadband operator, should click with investors as it is riding on strong pent-up demand, high operating leverage and 3G’s boost to broadband users and bandwidth usage. We initiate with an Outperform rating and DCF-based target price (10% WACC, 2% LTG). The stock should be catalysed by earnings growth of about 40% for FY12, followed by a potential FY13 dividend surprise when capex peaks. Jasmine is now one of our top regional telco picks given its cheap valuations and robust growth.