'Buy' Asian Pay Television Trust on 5G potential, dividend yield of 9.3% says PhillipCapital

PhillipCapital has maintained its "buy" rating for Asian Pay Television Trust (APTT) with an unchanged target price of 15 cents following its 4QFY2020 results that were within expectations.

Despite a decrease in cable TV subscribers by 7,000 q-o-q, PhillipCapital analyst Paul Chew remains upbeat on APTT as average revenue per user remained stable at NT$482 ($23.13). The trust’s cable TV revenue also benefitted from the 6.1% appreciation of the Taiwan dollar in FY2020.

Chew's rating and target price is underpinned by APTT’s growth in adjusted free cash flow for FY2020, which increased from $29 million to a record $67 million due to a significant decrease in capital expenditure by $21 million or 29%.

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