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Ernest Lim: Asian Pay, All Time Low Price Since IPO, Estimated Yield Of 11.4 Percent
Corporate Digest | 09 December 2015
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By: Ernest Lim
Articles (134) Profile

Asian Pay TV has dropped to $0.710. Day range (8 Dec) is $0.705 – $0.725.

This is an all time low price since its debut on 29 May 2013. According to Bloomberg, the average analyst target is $0.857. Estimated yield is around 11.4 percent. RSI is also trading at all time low at 14.4.

Asian Pay has slid 14.8 percent from an intraday high of $0.815 on 21 Oct 2015 to the current price of $0.710. The underperformance is stark compared to the 4.3 percent decline in the FTSE ST Real Estate Investment Trusts Index (“FTSE REIT”) over the same period.

With reference to Chart 1 below, Asian Pay is entrenched in a strong downtrend with declining exponential moving averages (“EMAs”). Indicators such as RSI and MACD are at or near all time lows, indicative of extreme selling pressures.

There may be a short term rebound due to the oversold pressures. However, based on the chart now, the rebound, if any, is unlikely to exceed $0.750.

Near term supports: $0.700 – $0.705 / $0.675

Near term resistances: $0.715 / $0.730 / $0.740

Some Noteworthy Points

1. Asian Pay is going to distribute $0.02 / share and is going to ex div on 9 Dec. In its latest 3QFY15 results, management affirmed full year FY15F guidance to be 8.25 cents, similar to FY14.

Barring any unforeseen circumstances, this means that it is going to distribute $0.0225 / share in its 4Q results, to be announced in Feb 2016. As of now, company did not mention their FY16F guidance;

2. The above estimated target price and estimated dividend yield are obtained from Bloomberg. It is noteworthy that analysts can raise or reduce their target price or / and estimated dividend yields anytime;

3. There may be certain bad news in Asian Pay (unknown to me) which results in the price being battered down more than the FTSE REIT.

Chart 1: Asian Pay at all time low price

Source: CIMB chart as of 7 Dec 15

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Ernest Lim is a CFA, CA and has worked at GIC Special Investment. He has a solid feel of the markets and financial world and is now a remisier.

Please click here for more information about this author.

Asian Pay Television Trust  0.159 -0.002 -1.24%   
Business: First listed biz trust in Asia focused on pay-TV biz.

Insight: Aug-18, 2Q18 total revenue and EBITDA were lower b... Read More


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