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Based on the higher free cash flow, Chew believes the trust will sustain a distribution per unit (DPU) of 0.25 cents per quarter in FY2021 for a full-year DPU of 1 cent, which translates to a yield of 9.3%.
SEE: Asian Pay Television Trust to use $46.2 mil from rights issue for partial repayment of offshore facilities, and fees
Chew’s target price of 15 cents is based on EV/EBITDA of 9 times, which is a 20% discount to Taiwanese peers given its “smaller scale, higher leverage and softer growth profile”. As at 11.34am, shares in APTT are down 0.1 cents or 0.94% lower at 10.6 cents.