+ Adjusted FCF surged. FY20 adjusted FCF rose S$29mn to S$67mn. EBITDA inched up to S$180mn but the largest improvement was a 29% or S$21m drop in capex. This is expected to provide ample cover for S$18mn of annual dividend payouts and to pare down debt.
– Core cable TV still shrinking. Cable TV is its largest division, at 64% of revenue. Cable TV revenue expanded modestly by 2% YoY to S$195mn, aided by a 6.1% appreciation of the Taiwan dollar in FY20. 4Q20 subscriber churns were the largest in eight quarters. We think affordable cable prices of NT$482 or S$23 for 100 channels should still provide some downside support.
Stable operating cash flows are expected to sustain quarterly dividends. Growth is anticipated from 5G data backhaul to mobile operators in Taiwan. No guidance has been provided but we expect a 14,000 fall in cable-TV subscribers in FY21e to be offset by a 15,000 increase in broadband subscribers.
Maintain BUY and TP of S$0.15
Yields of 9.3% are attractive, paid quarterly and well supported by FCF